Working with globally distributed teams proves exciting, rewarding and sometimes complicated. Many challenges of international business are logistical in nature. Others stem from dynamics involved when people from different cultures work together, rooted in the complexities of intercultural communication.
International business leadership demands expertise in managing these challenges and complications. The online Master of Business Administration (MBA) with an International Business Concentration program from Eastern Washington University (EWU) helps students develop this expertise through exploring subjects like international business, leadership and business communication. The intercultural communication skills students gain from these interdisciplinary studies are essential for managing high-performing, globally distributed teams.
What Is Intercultural Communication?
Intercultural communication refers to exchanging meaningful information across different cultures and social groups, involving understanding and navigating cultural differences to effectively communicate and build relationships. According to Preply Business, it represents “the process of creating a shared experience between individuals from different cultures, backgrounds, and languages.”
Other definitions focus on the creation of shared meanings through intercultural communication processes. Taken together, intercultural communication concerns both understanding and navigating the differences in how people from different cultures interact and communicate.
Why Is Intercultural Communication Important in International Business?
Effective intercultural communication directly impacts team performance, innovation and business outcomes. Many cultures have different norms surrounding workplace etiquette, scheduling, social structures and professional communication styles. All of these can present differences in how members of international teams interact and communicate with one another, how they interpret shared communications and how they expect others to communicate with them.
Examples can be as simple as cultural differences regarding physical contact like a handshake, eye contact or other forms of body language. People from different cultures may also feel differently about sharing personal information with coworkers. The concept of a healthy work-life balance can vary greatly around the globe. Informal styles of communication that are commonplace in one culture may appear rude or inappropriate in another.
These are just a few examples of how cultural norms regarding communication can vary greatly. Overlooking these differences and forcing a singular culture’s set of communication norms on a culturally diverse, international team of workers can have disastrous results.
The Pitfalls of Poor Intercultural Communication in Business
On the pragmatic level, intercultural misunderstandings in basic communications regarding expectations, timelines and goals can result in inefficiencies, lower productivity and more. In addition, social and interpersonal miscommunications can lead to conflict and hinder team morale, collaboration and the innovation that high-functioning teams contribute.
Poorly navigated intercultural communication also detracts from the distinct advantages diverse groups of employees offer when they understand how to work together as a team. Research from McKinsey demonstrates that companies in the top quartile for ethnic diversity show an average 27% financial advantage over others. Organizations that do not foster excellent intercultural communication may miss out on this critical benefit.
Communication challenges are always important considerations when managing teams. The nuances of intercultural communication in international business can exponentially complicate matters, and linguistic differences among team members can create additional communication hurdles. Thus, fostering effective intercultural communication within globally distributed teams remains an essential goal of leaders.
How Can We Improve Intercultural Communication?
Developing cultural competence represents the first step in establishing strong intercultural communication within global teams. Leaders and team members alike need a deep understanding of one another’s cultures and customs to respond to different communication norms.
Importantly, developing this understanding also requires that people identify and deconstruct potential barriers to effective intercultural communication. For example, culturally specific constructs like ethnocentrism, stereotypes and assumptions about certain behaviors can inhibit intercultural communication when projected on others.
Being cognizant of cultural differences enables teams to leverage diversity as a competitive advantage. Exploring and celebrating the ways cultures differ can lead to new ideas, learning and innovation. By adding their perspectives to the whole, team members can build the shared meanings that underlie effective intercultural communication.
Practical Applications in Global Business
On a simple and personal level, humor and tone can differ greatly between cultures and languages. Sarcastic humor, for instance, is often specific to a culture. It can easily appear negative, especially in written communications, when delivered without body language. Focusing on positive, clear and direct communication while avoiding culture-specific humor and colloquialisms can help keep intercultural communication constructive.
According to workplace diversity research, 80% of employees want to work for companies that value diversity and inclusion efforts. Further statistics on workplace diversity show that 74% of millennial employees believe companies are more innovative when culturally inclusive. Strong intercultural communication skills prove vital for developing and maintaining the relationships that global business success depends on.
EWU’s AACSB-accredited international business MBA explores these dynamics through coursework in multinational people management, global marketing and international business environments. Whether interacting with team members, clients or business partners, demonstrating cultural awareness and respect through positive intercultural communication remains essential for success in today’s interconnected, global marketplace.
Learn more about Eastern Washington University’s online MBA program with an International Business Concentration.
