Savonia Article: Cultural Misunderstandings as a Hindrance to International Business Cooperation
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As local environmental challenges increase worldwide, international cooperation is becoming more necessary. The impacts of climate change are forcing societies to alter their traditional consumption patterns. As part of a project on developing a sustainable future, we examined issues in Finnish cooperation within Morocco’s water sector. Finnish expertise in water management is highly valued globally, yet collaboration progresses painfully slowly. Finnish companies have knowledge and solutions to offer, particularly in wastewater treatment and smart water systems. Efforts have been made through export promotion trips and networking. However, promoting international cooperation requires not only business-to-business contacts but also high-level political collaboration, and within this lies many critical points. Often, seemingly promising partnerships may dissolve for no apparent reason.
The Concept of Time Behind Different Cultures
One might assume that counties and companies would cooperate closely when there is a great need for solutions. However, good intentions alone are not enough. Business is always between at least two parties, and trust is needed. When the participants come from different cultures, building trust becomes an even steeper hill to climb. Building trust requires knowing your partner to a sufficient degree (Forsberg 2016, 160). The cultural concept of time significantly affects the background of the participants.
Cultural perceptions of time can be divided into three categories: linear, multi-active, and reactive. Finns belong to the reactive time orientation, where the speaker is respected, and turns are awaited. As Finns become more familiar, they tend to be more direct, diving straight into the subject matter, and find unnecessary detours pointless (CrossCulture, Cultural Classification: Reactive, 2016). Such behavior can be perceived as offensive, especially by those who live in a multi-active time orientation. Characteristics of this orientation include community spirit, the importance of encounters, a lively and tactful way of speaking, and things progressing at their own pace (CrossCulture, 2016, Cultural Classification: Multi-active). The multi-active perception of time often clashes with the linear perception, which is typical in Western countries. The Western approach leans to laws and agreements, is fast and efficient, and emphasizes cost-effective use of money and faith in science to determine a logical course of action (CrossCulture, 2016, Cultural Classification: Linear-active).
Cultural Differences as a Challenge to Building Trust
The biggest challenge for trade with North Africa is often considered to be the cultural differences (Ahola 2023, 23). In our development project, cultural differences were also particularly highlighted. Finnish companies find it challenging to enter the Moroccan market, even when the start seems promising and there is demand for the product. If the right people are found as counterparts in the trade and there is local support, the project can progress.
In Moroccan culture, the initial phase involves getting to know each other. The first contacts can be pathfinders, whose task is to assess the suitability and trustworthiness of a potential partner. However, these pathfinders may not have the mandate to make a deal. From a Finnish perspective, the familiarization phase can feel frustratingly long since we live in a culture that has strong faith in agreements.
Building mutual trust is a significant challenge. Distrust is present in the interaction between the countries (Vuorelma 2018, 3). Moroccan culture values personal knowledge of the parties, the exchange of courtesies in conversation, and the giving of gifts. Discussions often proceed in a roundabout way, and for those accustomed to direct Western communication, it may appear that things are not progressing quickly enough. On the other hand, the Finnish approach of getting straight to the point may come across as impolite. The small details of communication can determine the entire direction of the cooperation.
Seeing Your Reflection in Your Conversation Partner
While Finnish culture progresses purposefully and formally, promoting business cooperation between countries requires accepting the differences in other cultures. The differences related to the perception of time between cultures must be acknowledged, and space must be given for building trust and familiarity. An excellent product alone is not enough; one must also integrate into the local culture to enter the market. By actively examining one’s own actions, it is possible to identify critical points that hinder interaction.
People are quick to place themselves above those who behave differently. Since themes of equality and equity are more advanced in Finnish society than in many others, it can be easy to look down upon cultures perceived as more traditional. However, things are the result of complex developments that should be examined as a whole, letting go of one’s prejudices.
In business, luck plays a role, but successes are largely born from individual, bilateral encounters, cultural respect, and persistent effort.
Authors:
Saaraleena Haapavaara, Master of Business, Sustainable Future, Savonia University of Applied Sciences
Heli Lehtelä, Master of Business, Sustainable Future, Savonia University of Applied Sciences
References:
Ahola, Toni, 2023. Suomalaisyritysten haasteita ja ratkaisuja kiertotaloussektorilla Pohjois-Afrikassa. Opinnäytetyö. Ahola_Toni.pdf (theseus.fi) [Luettu: 28.6.2024]
CrossCulture, 2016. Cultural Classification: Linear-active. http://www.crossculture.com/about-us/the-model/linear-active/ [Luettu: 27.6.2024]
CrossCulture, 2016. Cultural Classification: Multi-active. http://www.crossculture.com/about-us/the-model/multi-active/ [Luettu: 27.6.2024]
CrossCulture, 2016. Cultural Classification: Reactive. http://www.crossculture.com/about-us/the-model/reactive/ [Luettu: 27.6.2024]
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Vuorelma, Johanna, 2018. Trust as narrative: Representing Turkey in Western foreign policy analysis. Teoksessa: Haukkala, Hiski, Carina van de Wetering & Johanna Vuorelma (toim.). Trust in International Relations Rationalist, Constructivist, and Psychological Approaches. Lontoo ja New York: Routledge. Sivut 37–56