Overcoming Ethnocentrism

When doing business overseas, forming accurate, non-judgmental cross-cultural perspectives is a critical key to success. Without this, foreign companies and individuals may enter host cultures insisting on doing business ‘their way’, thinking that doing business is the same everywhere.

Nothing, however, could be farther from the truth. The infamous DaimlerChrysler merger illustrates this beautifully. Language, protocol, business etiquette and a host of other cross-cultural barriers contributed to this merger’s demise. In fact, I would be surprised if you didn’t see some of the same barriers popping up occasionally in your international business.

Why do these cross-cultural barriers present themselves and, more importantly, how can they be overcome?

The root cause of cross-cultural barriers in business is ethnocentrism. Basically, this is the belief that your culture is the 'right' one. The further a foreign culture is from your own, the more barbaric, absurd and backward it may seem to be. We all use our own culture as a reference when making comparisons, so a degree of ethnocentrism is natural when you begin doing business in a new culture.

Ethnocentrism is strengthened by social factors such as a strong central authority, kinship and clannishness, self-sufficient markets and in-group favoritism. The more homogeneous and insulated the culture, the more inflexible the sense of ethnocentrism. In business, however, if ethnocentrism is not managed, companies and individuals can maintain a sense of cultural superiority, thinking ‘our way will work anywhere.’ Cultural conflicts begin here.

Fortunately, ethnocentrism can be overcome and along with it fall a series of cross-cultural barriers. The most obvious way to achieve this is through exposure. Learning a second language, for example, opens windows into how other cultures think and communicate. Exposure abroad through travel and study and communication with overseas friends or relatives challenges your ethnocentric perspectives and enables you to view foreign cultures less judgmentally. Even small steps, like learning to appreciate a new culture’s art or music, can give you new insights as to what the culture is really about.

If your company is thinking about making the move overseas, thorough research into the host culture’s perspectives on doing business is critical. And if you’ve received a short-term expatriate assignment in your company’s foreign branch, cross-cultural training is essential to help you adapt.

All cultures share similarities, but no two cultures are exactly the same. International businesses and individuals need to move from ethnocentric to multicultural mindsets.

The key for international business is to find ways for people who think differently to work together.