Barriers to Cross Cultural Communication and the steps needed to be taken

for a MNC to Succeed in the Global Market

Dinuk Arseculeratne
Center of Southern New Hampshire University (SNHU) Programs
HELP College of Arts and Technology
Kuala Lumpur, Malaysia.
dinuk.arseculeratne@gmail.com

Rashad Yazdanifard
Center of Southern New Hampshire University (SNHU) Programs
HELP College of Arts and Technology
Kuala Lumpur, Malaysia.
rashadyazdanifard@yahoo.com

Abstract

Business firms such as Multinational Companies (MNC) will inevitably have to be accustomed to different
working styles of their workers who are drawn from different cultural backgrounds. It is imperative for business
firms to understand the cross cultural differences in their operations & this understanding acquires more importance
in the sphere of communicating with people hailing from diverse cultures. The communication system of a business
organization is interspersed with values, rules, practices & philosophy of the business. Communication system acts
as link in transmitting values & norms associated with different cultures in an organization. Since the
communication system holds the key to transcending the differences in cultures an MNC would regard its
communication system as a mechanism to transfer knowledge. Hence an MNC will have to ensure that steps are
taken to overcome the barriers to cross cultural communication in order to attaining organizational objectives
effectively & efficiently.The paper dwells on understanding the concept of cultures, the significance of cross cultural
communication, different underlying ethos of national culture, barriers to cross cultural communication & measures
to overcome these cross cultural barriers by developing intercultural competence in the organizational set up.
Keywords: Multinational Company, Culture, High Context and Low Context Cultures,

1. Introduction
Globalization has resulted in people living across borders being intermingled in varied ways. Business
firms such as Multinational Companies (MNC) will inevitably have to be accustomed to different working styles of
their workers who are drawn from different cultural backgrounds. It is imperative for business firms to understand
the cross cultural differences in their operations & this understanding acquires more importance in the sphere of
communicating with people hailing from diverse cultures. It has to be noted that many business firms have become
responsive towards accommodating different cultural perspectives & some business entities have shaped their
organizational settings so as to be in harmony with sensitivities in different cultures. MNCs operate in different
countries & they cater to the needs of customers sharing different cultural meanings. In communicating with
customers belonging to multitude of cultures, MNCs will have to develop & shape their policies especially in
communication to reflect this responsiveness towards cultural diversity. (Ambos &Schlegelmilch, 2008)
Intercultural communication that takes place in business entities will have to take cognizance of the
differences but at the same time it has become a challenge for them to develop a synthesis whereby unity is brought
about in the midst of diversity. The obsession to overemphasize the differences between different cultures may result
in stereotypes being conceived & such perceived notions may prove to be a hindrance in communicating with
people. (Erez & Miriam, 1992)
The concept of culture has been defined in numerous ways. A generally accepted view would be: culture is
a shared collective of beliefs, norms, attitudes & notions of mindsets. A close examination of any culture would
indicate that culture is a phenomenon that has bound societies which share similar beliefs, norms, attitudes &
notions of mindsets together. Hence a culture creates a sense of unity & cohesion among people who identify
themselves with it. Culture plays a major role in shaping & governing the behavior of people. Culture has evolved in
response to the circumstances that have taken place in the society. Since culture has evolved it can surmised that it
would tend to evolve further in response to the needs of the people & societies. The phenomena culture is reinforced
in a peculiar manner so that culture shapes human behavior & in turn human behavior results in culture being
shaped. (Jiang, 2000)
In the midst of varied cultures business firms have to find ways & means of bringing about clarity in
communication while being attentive to the different cultural perspectives which underlie the behavior of both
sender & receiver, content of message, communication means & import of communication. As has been said,
different elements involved in communication process may be associated with different cultural meanings &
interpretations. Cross cultural communication where people belonging to diverse cultures being in communication
with each other needs to be effective in order to facilitate business firms to achieve their business objectives. In
order to make cross cultural communication effective, a business has to understand the elements associated with a

culture, the process of shaping a culture, barriers involved in cross cultural communication process & identifying
means of overcoming such barriers. (Adler & Nancy, 1983)

2. Cross cultural differences

In a globalized business world, people being trained to deal with diversity at the work place has become a
routine so that business firms sometimes indulge in sending workers to different parts of the world to perform
various duties. The dispatch of workers form one part to another part of the world is often preceded by a process
whereby workers are imparted a cross cultural training so that they would gauge the culture of the country in which
they are going to be based in the days to come. Very often these workers, to be based in a different culture, will
have to come to terms with it in the discharge of their assignments. MNCs have made it a point to emphasize the
importance of understanding cultural diversity so that they prefer to hire professionals who are competent in having
agility to work across different cultures. In fact most cross cultural training programs have been designed to equip
workers with knowledge, skills & attitudes required to operate in a different cultural setting. (Munter, 1995)
In studying the cross cultural communication in business organizational context, one has to be concerned
with cross cultural management aspect as it dwells on organizational culture, organizational behavior, leadership
styles & motivational strategies. Of these themes the issues pertaining to management style, communication system
& behavior of employees assume significance as they have a bearing on cross cultural communication
intermittingly.(Munter, 1995)
The dimensions of national culture theory, postulated by Hofstede are considered to have thrown much
light on cross cultural communication in business context & a significant contribution towards cross cultural
communication has been made by high context & low context theory introduced by Hall. (Shore&Cross,2005)
Hofstede makes a clear distinction between organizational culture & national culture. Accordingly the
differences in organizational culture have to do mostly with practices of the organization while in a national culture
the differences are discerned with values. Values are inculcated in an individual through family settings & formative
years in schools. Practices are ingrained in an individual by being exposed to social experiences & adapting to
changes. (Shore & Cross, 2005)
In the context of operations by MNCs, the phenomenon associated with national culture assumes
importance since an MNC operating in a different country is often identified with the culture of the parent company
while employees working in the company hail from the host country. (Morden, 1995)
In view of this, it can be observed that a potential conflict tends to develop between the two different
cultures as parent companys culture has to coexist with host countrys culture. Very often the culture of the parent
company may be seen as having been super imposed on the native culture so that employees may tend to develop an
obsession to resist the culture of the parent company as a necessary evil. The prevalence of this resistance lowers the
effectiveness of activities of an MNC & this breeds rivalry whereas cohesion is the imperative need of the hour.
Organizational objectives would be better served by reconciling the diverse aspects of different cultures. (Morden,
1995)

3. National culture
In understanding a national culture, different elements inherent therein need to be analyzed. Hofstede
identifies these different combinations of elements as individualism vs. Collectivism; low vs. high power distance;
masculinity vs. femininity &long term vs. short term perspective. (Shore & Cross, 2005)
Power distance deals with understanding the extent to which power has been distributed within an
organization. If the power in an organization in a country is disbursed between workers & mangers then such a
culture is known as having a low power distance between subordinates & superiors. In a culture like this there seems
to be a shared understanding as to each others power & very often managers engage workers in eliciting responses

to decision making process. Workers are equally conscious of the fact they have a say in decision making.(Shore &
Cross, 2005)
Workers gain access to managers with relative ease & they feel comfortable in engaging with superiors.
Hence there is interdependence between subordinates & superiors. In the case of high power distance cultures,
power is concentrated in the organization so that there exists a clearly discerned gap between subordinates &
superiors. Subordinates are hesitant to carve out a niche for themselves in the power structure & they strive to
maintain the distance from their superiors. Engaging superiors with ease is perceived to be blurring the distance
between them. (Shore & Cross, 2005)
The comparison based on individualism vs. Collectivism is premised on how attached an individual is to
ties binding one with the society. In a society where individualism reigns supreme, an individual tends to be more
detached from the social ties. Individuals value freedom & they aspire to harness ones potential to achieve selfactualization. In essence individualism is woven around being individual centric. In a society where collectivism is
paramount, individual is attached to collective norms & values. The individual is compelled to abide with these
collective norms & values as they seemingly offer them collective security. In the light of this perceived security an
individual would hardly question the behavior governed by such norms. (Shore & Cross, 2005)
The role of females & males is at the heart of the comparison involving masculinity vs. femininity. A
society that places more value on being ambitious, aggressive & accumulating material wealth bordering on
individualism qualifies to be called as imbedded with a masculinity culture. A femininity culture accords priority to
a holistic approach in development of an individual so that the wellbeing of the society would bring about the
growth of an individual. In fact in a masculinity culture a no holds barred competition rages between individuals
while in a femininity culture, individual is expected to act with restraint so that social progress is not impeded. This
difference can be discerned in organizational settings in these cultures.(Shore & Cross, 2005)
Managers in a masculinity culture tend to be objective in their assessment of situations & try to ensure that
the targets are met. Managers in a femininity culture are perceived to be subjective & empathetic in their grasp of
situations. Managers would often put themselves in the shoe of others before acting upon compulsions. It is no
surprise that employees used to a femininity culture would perceive a manger hailing from a masculinity culture to
be ruthless. In the case of MNCs this contrast has always vitiated the atmosphere of communication.(Shore &
Cross, 2005)
How a society treats the future & the approach it takes with regard to time factor is the matter of contention
in short term vs. long term perspectives. Societies with long term perspectives place high value on ensuring long
term stability of the society & they tend to approach issues with hindsight on the future generations. Issues such as
preserving environment, providing for future needs, anticipating future contingencies, inculcating the value of
savings are some of the strands echoed in a culture steeped in a long term perspective. Societies like Japan & many
Asian cultures fit in to this category. Western societies are regarded as peculiar with a short term perspective.
Sometimes the word short termism is applied with disdain by people belonging to other cultures to refer to the west.
However a culture with a short term perspective is identified with respect for status & reciprocating with material
gifts for the support extended. (Shore & Cross, 2005)

4. High context communication & low context communication in cross cultures

Communication context in which preference for messages by people is made is the underlying basis for
classifying cultures as high context & low context. High context communication culture is characterized by a society
which is interdependent. The meanings attached to word may carry number of interpretations & the context in which
these words are used or uttered may give different connotations to them. More often words accompanied by body
language may give an altogether different meaning to the same word used elsewhere. Oriental cultures most often
seem to be interspersed with unexpressed communication but with underlying messages in body language. (Mary,
1993)
A low context communication culture encourages direct expression of ideas & one can be frank in
assessment of situations. In a culture of this nature Mangers may be blunt in their comments & very often what is

being conveyed is not marred by hidden meanings. Many people find it easy to come to grips with the expressions of
low context cultures as the messages are clear & loud for anyone to attach a universal meaning. Fast changing nature
of business transactions & the need to save precious time has meant low context communication is being preferred
by MNCs in their operations. However in putting out a detailed press statement, a business firm has to appreciate
the context in which the statement is made, underlying messages & the choice of words if the firm operates in a high
context communication culture. A business firm may get into a quagmire if the words are understood in a different
light. (Mary, 1993)
The above dimensions of a national culture necessarily influence communication process when business
firms operate across cultures. Firstly the internal communication process of business organization would be affected
by divergence of national cultures. Internal communication system in a business organization comprises of
management style & staff behavior. The former is concerned with the conduct of the superiors & the latter deals
with subordinates. Barriers to communication are found between these two layers since the two parties operate with
divergent objectives. (Mary, 1993)
5. Barriers to cross cultural communication at the work place
The barriers to cross cultural communication could be discerned as stemming due to, management style,
absence of understanding between management & staff, power distance prevalent, varied expectations by
management, language barriers & worker expectations. These issues mar the communication process adding
complexities to the situation. Broadly the communication barriers can be identified as issues that have to do with the
management & issues owing to the behavior of the staff. (Ybema&Byun, 2009)
The style of functioning by management is largely affected by the culture to which the majority of
management belongs to. Studies done have revealed that western managers tend to be explicit in their
communication. In the case of resolving conflicts, managers from the west tend to adopt a competing style whereby
parties to the conflict are encouraged to air their grievances freely. The issues as the managers perceive them need
not be swept under the carpet rather they need to be brought to the surface to understand the intricacies connected
with them. In contrast to this Asian managers prefer to avoid direct expression bordering on criticism or provocation
as they believe in a healing of wounds through a long term perspectives. Managers may not want to discuss certain
sensitive issues as they regard them to be affecting ones privacy. Communication may be affected due these
varying styles since the staff may not be clear on what to say & how to give expressions to their thoughts.
Management may come down hard on them for arousing sensitivities or painting a rosy picture in a myriad
situation.(Tang& Koveos, 2008)
Communication barriers generally arise due to the absence of understanding between parties to the
dialogue. Culture tends to create different attitudes & approaches to problem solving. There might be different
approaches to solving a problem by the management & staff. When management & staff hail from different cultures
their understanding of issues may turn out to be different. This ultimately compounds the process of arriving at a
common understanding of the issues at stake. (Richardson&Smith, 2007)
Western culture functions on the notion that power is not individual centric so that decision making need
not be concentrated in the hands of a coterie. This approach would require the staff to assert themselves in
performing duties. Individuals are empowered to act & take decisions on the spot. Employees do not have to refer
decisions always to the management. (Gudykunst, 2003)
Since western thinking is based on individuals right to property ownership, individuals are expected to
protect the individual domains earmarked for them & any unobtrusive foray to others domain is not seen as
unwarranted. In eastern thinking power tends to be concentrated in the hands of an apex body comprising of the
leaders who would take decisions on behalf of the others. Staff used to be dictated by the management as to what to
do in given situations may not be enthusiastic in taking part in the decision making process & they may not be
willing to share in risk taking adventures. Managers hailing from a western cultural background may be receptive to
the feedback by the staff while Asian managers may not think listening as mandatory or an essential prerequisite for
decision making. (Richardson & Smith, 2007)
Staff working in an organization would form a vital element in a business organization. At an MNC,
workers hail from different backgrounds. They bring varied skills & a knowledge base but at the same time have a

multitude of expectations. The language barriers owing to workers belonging to different ethnic groups are an issue
to grapple with in communication. As has been discussed under low context & high context communication, the
words spoken in a different culture may carry a different meaning in another cultural setting. The context in which
these words are used may vitiate or steer clear issues. (Kirkman&Rosen, 1999)
Language has become a barrier in the case of many MNCs operating especially in China since the majority
of the workers cannot converse in any international language. Since the Chinese society is more of homogeneous in
nature, the receptiveness to speaking in a different language other than mother tongue may not be an attractive
proposition. But in the case of an Asian country like India this has proved to be a blessing as owing to the Colonial
background & proliferation different languages in the country, the society is receptive towards accommodating
pluralism. Many MNCs prefer to recruit Indian staff as they could intermingle with staff coming from other cultural
settings. (Welch & Welch, 2008)
Different expectations of the staff would have to be taken into consideration in motivating them.
Empowerment of the staff may not appeal to a group of workers who are more stimulated by extrinsic benefits such
as pay hikes & other monetary benefits. Asian staff may be largely motivated by extrinsic motivation in some
situations if they are offered additional responsibilities. In some instances they may prefer leisure over work even
though monetary considerations seem to be tempting. Western staff would tend to value monetary gains as long as
they could afford them an accepted level of material comfort but once this threshold is surpassed there would be
eying for challenging assignments & variety in work schedules. (Hitt, 1995)
The communication system of a business organization is interspersed with values, rules, practices &
philosophy of the business. Communication system acts as link in transmitting values & norms associated with
different cultures in an organization. Since the communication system holds the key to transcending the differences
in cultures an MNC would regard its communication system as a mechanism to transfer knowledge. This mechanism
has to bring about clarity & cohesion to sustain the organizational fabric so that it functions smoothly without being
disrupted by cross cultural differences. However the communication system in an MNC will necessarily have to
confront certain restraints due to the divergence of the work force & management. It is imperative to overcome
differences in cross cultural communication since a uniformed pattern can be evolved through an effective
communication system in an MNC. Hence an MNC will have to ensure that steps are taken to overcome the barriers
to cross cultural communication in order to attaining organizational objectives effectively & efficiently. Business
organizations may contemplate many actions to remove the restrains impeding cross cultural communication.
(Martin & Nakayama, 2012)
6. Measures to overcome barriers in cross cultural communication
In an era of having to operate with multiculturalism, a communicator has to be competent in intercultural
communicating. This competence in cross cultural communication would enable an organization to achieve
objectives while according due respect to values, norms, beliefs of the people being affected by its operations. A
business organization has to develop intercultural competence in organizational set up to overcome the barriers to
cross cultural communication. (Welch & Welch, 2008)
Intercultural competence is defined as the ability to participate in a set of activities the core of which
happens to a common communication code. This ability is aided by knowledge, skills & attitudes. Successful
Development of intercultural competence rests on three pillars. These components that facilitate orderly cross
cultural communication would be intercultural sensitivity, intercultural awareness &intercultural adroitness.The
affectionate aspect of intercultural communication is identified as intercultural sensitivity. This aspect is to be
developed in order to equip individuals with the ability to appreciate other cultures differences. Through the
development of intercultural sensitivity, an individual would be able to grasp self-concept, neutrality & selfpossession. (Welch & Welch, 2008)
The cognitive aspect of intercultural communication is known as intercultural awareness. This dimension
involves mastering an individuals ability to understand other cultures implicit conventions that govern the behavior
of people influenced by that particular culture. Intercultural awareness results in enhancing not only culturalawareness but also self-awareness in the process. (Linghui & Koveos, 2008)

The behavioral aspect of intercultural communication characterizes intercultural adroitness. The

development of adroitness focuses on enhancing the skills required enact successfully intercultural transactions. The
successful conclusion of transactions would bring about bottom line results to an MNC that translate into tangible
results. Interactive management, developing social skills especially etiquettes, enhancing the quality of selfexpression are some of the key result areas where progress is expected to be made. (Dues & Brown, 2003)
The development of ability to appreciate how people hailing from different cultural backgrounds think, act
& feel requires a concerted effort & a considerable time. Apart from this fact a business organization has to deal
with inculcating individuals with certain qualities to enable them to continue to maintain intercultural competence.
These qualities would imbibe in an individual long lasting value so that the person concerned would effectively deal
with barriers to cross cultural communication as they encounter them. These qualities can be identified as attitudes,
knowledge, comprehension & intercultural skills & managing anxiety. Attitudes would encompass respect,
openness, curiosity & discovery. Intercultural development trainers emphasize the significance of attitudes as they
largely shape responses in cross cultural communication. (Linghui & Koveos, 2008)
Respecting the cultural norms, values & ethos of others stems from a belief that such cultures need to be
treated with dignity. This belief is coupled with treating others as equals. The spirit of respecting other cultures
would find expression in being empathetic about use of language. Openness has to do with being receptive towards
accepting people from various cultures. Openness would avoid prejudgment of individuals & circumstances to leave
room for listening to others. Openness promotes engagement though a polite manner of seeking clarifications. In the
process an individual would be enabled to view the world from others point of view. Curiosity is inherent with
ambiguity but this ambivalence can be used as a stimulating urge in order to understand peculiar aspects of other
cultures. (Orozco & Blando, 2007)
Development of knowledge &comprehension would accentuate the process of creating self-awareness
along with cultural knowledge & socio linguistic awareness. Cultural awareness would prepare an individual to
conduct oneself appropriately in a diverse cultural context. Social linguistic awareness combines cultural awareness
with the language. Intercultural skills involve ability to effectively engage different cultures. This is the application
of cultural knowledge in practice. Through intercultural engagements positive results are to be gained. This aspect
devotes considerable emphasis on behavioral aspects of interactions. (Ybema & Byun, 2009)
As intercultural communication is often clouded with ambiguity individuals may suffer from a paranoid in
dealing with an alien culture. Hence there is an imperative need to overcome anxiety in cross cultural
communication in order to ease constrains. Anxiety often stands on the way of effective communication since
individuals develop antipathy to dealings with people hailing form diverse cultures. To overcome anxiety in cross
cultural communication care has to be exercised in enabling individuals to manage their emotions & actions
followed by feelings. (John, 2003)
Overcoming the barriers in cross cultural communication would aid in fostering an inclusive organizational
culture which is mutually beneficial to the individual as well as the organization. MNCs would optimize their
results by ensuring the effective use of diverse knowledge base they have been endowed with. (Ybema & Byun,
2009)

7. Discussion
Globalization has resulted in people living across borders being intermingled in varied ways. Business
firms such as Multinational Companies (MNC) will inevitably have to be accustomed to different working styles of
their workers who are drawn from different cultural backgrounds. Many business firms have become responsive
towards accommodating different cultural perspectives & some business entities have shaped their organizational
settings so as to be in harmony with sensitivities in different cultures. In the midst of varied cultures business firms
have to find ways & means of bringing about clarity in communication while being attentive to the different cultural
perspectives which underlie the behavior of both sender & receiver, content of message, communication means &
import of communication.

The concept of culture has been defined in numerous ways. A generally accepted view would be: culture is
a shared collective of beliefs, norms, attitudes & notions of mindsets. A close examination of any culture would
indicate that culture is a phenomenon that has bound societies which share similar beliefs, norms, attitudes &
notions of mindsets together.
8. Conclusion
In studying the cross cultural communication in business organizational context, one has to be concerned
with cross cultural management aspect as it dwells on organizational culture, organizational behavior, leadership
styles & motivational strategies. The dimensions of national culture theory, postulated by Hofstede are considered to
have thrown much light on cross cultural communication in business context. In understanding a national culture,
different elements inherent therein need to be analyzed. Hofstede identifies these different combinations of elements
as individualism vs. Collectivism; low vs. high power distance; masculinity vs. femininity & long term vs. short
term perspective. Communication context in which preference for messages by people is made is the underlying
basis for classifying cultures as high context & low context.
Internal communication process of business organization would be affected by divergence of national
cultures. Internal communication system in a business organization comprises of management style & staff
behavior. Broadly the communication barriers can be identified as issues that have to do with the management &
issues owing to the behavior of the staff. It is imperative to overcome differences in cross cultural communication
since a uniformed pattern can be evolved through an effective communication system in an MNC. Hence an MNC
will have to ensure that steps are taken to overcome the barriers to cross cultural communication in order to attaining
organizational objectives effectively & efficiently. The competence in cross cultural communication would enable
an organization to achieve objectives while according due respect to values, norms, beliefs of the people being
affected by its operations. A business organization has to develop intercultural competence in organizational set up
to overcome the barriers to cross cultural communication.

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