mingle

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MingleMark A. White a & Ellen M. Whitener aa McIntire School of Commerce , University ofVirginia , Charlottesville, VA, 22903, USAPublished online: 12 Oct 2008.

To cite this article: Mark A. White & Ellen M. Whitener (1998) Mingle, Journal ofTeaching in International Business, 9:3, 1-12, DOI: 10.1300/J066v09n03_01

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Mingle: A Participative Exercise to Motivate

the Understanding of Cross-Cultural Differences

in International Business Mark A. White

Ellen M. Whitener

ABSTRACT. Different currencies and different cultures explain many of the distinctions between domestic and international business and financial operations. Courses in international business primarily focus on currency issues; however, they should include consideration of rclated-cultural differences as well. We describe a classroom exercise rooted in the research on differences in cultural values that introduces students to thc variety and discomfort of those differences, while providing a context for discussing the influence of culture on a f m ’ s managerial and financial operations. [Article copies available for 0 fee froin ilie Haworth Document Delivery Service: 1-800-342-9678. E-mail address: ~etinfo~hawo~t}i.coin]

Recent years have seen a rapid expansion of international trade and concomitant integration of the world financial markets. When trade is conducted domestically, local economic, competitive, and

Mark A. White and Ellen M. Whitener are affiliated with the Mclntire School of Commerce, University of Virginia, Charlottesville, VA 22903.

The authors gratefully acknowledge financial support provided by the Univer- sity of Virginia’s Mclntire School of Commerce Associates Program. Diane Dodd-McCue, Gib Akin, Robert Wittmann, Susie White and Garth Troxell provided helpful suggestions and advice.

Journal ofTeaching in International Business, Vol. 9(3) 1998 0 1998 by The Haworth Press, Inc. All rights reserved. I

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2 JOURNAL OF TEACHING IN INTERNATIONAL BUSINESS

political factors make it complicated enough; however, when trade expands to cross international borders, these intricacies are com- pounded by additional factors. One must also consider the influence of different currencies and different cultures.

The management of currency risk-risk caused by fluctuating for- eign exchange rates-is probably the chief difference between international and domestic commerce. Therefore, it is the dominant focus of international business and finance courses in business schools. However, differences in cultures also play a key role, ex- plaining managerial and marketing variations around the world and impacting fmancial systems. Cultural differences strongly influence the development of accounting systems, financing opportunities, capital structures, and investment evaluation techniques. For example, countries with cultures valuing relationships over material goods tend to create high-tax environments (Adler, 1991). Despite these influences, cultural differences continue to receive less attention in international business and fmance courses.

This paper introduces an exercise designed to expose students to cross-cultural differences and to increase awareness of those differences as a prelude to discussing their impact on international managerial and financial policies. The exercise, “Mingle,” is rooted in the theory of cross-cultural differences. It represents an amalgam- ation of observations and ideas gleaned from personal experience and “do’s and taboos” in international business (Axtell, 1990, 1991, 1993; Momson, Conaway, & Borden, 1994). It has been used with success as an icebreaker with undergraduate, graduate, and executive education students both domestically and abroad. It leads easily to discussions of cross-cultural influences on management and financial policies.

THEORETICAL BACKGROUND

“Mingle” is built on an understanding of culture, selected dimensions of cultural differences, and the demonstration of cultural differences in non-verbal communication. Although definitions of culture vary widely (Daniels & Radebaugh, 1993), Kroeber and Kluckhohn (as cited in Adler, 1991) provide a widely accepted definition:

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“Culture consists of patterns . . . transmitted by symbols, constituting the distinctive achievement of human groups, including their embodiment in artifacts . . .” (p. 15).

Culture is typically shared by almost all members of a group, gets passed on from older to younger members of the group, shapes perceptions, and influences behavior (Adler, 199 1). When individuals share the same culture, their possessions, thought processes, and habits are very similar. They understand what things mean and they know what is expected of them. When business people come from the same culture they share the same values, see things the same way, and know what to do or say. However, when business people come from different cultures, they often conflict and do not know what to do or say.

Individuals in different cultures tend to differ in their values on six major dimensions (Kluckhohn & Strodtbeck, 1961). Their personal values range along a continuum for each of these dimensions (Figure 1).

FIGURE 1. Dimensions of Cultural Values

Value Range

Nature of individuals Good to Evil 4 c

Human beings’ relation to nature and the world

Dominance to Harmony

Relations among individuals Individualism to Collectivism

Activity level Doing to Being 4 t

Time FutureiPresent lo Past *

Space Private to Public 4 ).

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Differences in cultural values affect managerial and financial operations and relationships (Adler, 199 1). For example, organizations in cultures tending to see individuals as basically good emphasize hiring and selecting individuals to fit the job and typically do not expect them to change. In individualistic cultures, decisions are typically made autocratically by individual managers or executives, but in collectivistic cultures they are made participatively by groups. Employees work hard and focus on goal attainment in cultures that value “doing;” whereas, employees work just hard enough to make a living and get by in cultures that value “being.” Organizations make specific, long-term strategic and tactical plans in future-ori- ented cultures, while those in cultures valuing the past emphasize past policies and stress tradition.

These differences come out strongly in the ways people from different cultures communicate. To communicate effectively in cross- cultural business interactions, business people need to be aware of the symbols, meanings, and gestures of other cultures. Failure to understand how cultures differ in their nonverbal communication can lead to costly business misses (Chaney & Martin, 1995).

Nonverbal communication varies across cultures on several dimensions (Chaney & Martin, 1995). Cultures vary in theirparalun- guuge-the rate, volume, and quality of speech. Even individuals who speak the same language may vary in the speed or loudness of their speech. Second, cultures vary on oculesics-the type and im- portance of gaze and eye contact. In some, prolonged direct eye contact conveys hostility; however, in others, i t implies interest. Conversely, minimal eye contact can mean respect in some cultures and fear in others. Cultures also differ in haptics or touch and proxeniics or personal space. Some societies are comfortable with “high touch” and closeness; whereas, others would interpret touching and closeness as inappropriate and sexual. Finally, cultures vary in their kinesics, the facial expressions and gestures they typically make. The same gesture may be encouraging and uplifting in some cultures and insulting and nasty in others.

The collection of behaviors used in “Mingle” represent real nonverbal habits and gestures that are also derived from differences in cultural values. The exercise allows the instructor to “walk back- ward”-starting with exposing students to unfamiliar and uncom-

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fortable types of nonverbal communication, continuing with a discussion of cultural differences and different cultural values, and ending with application of their new understanding to business, financial, and managerial contexts.

THE EXERCISE

Materials and Preparation

Prior to beginning, the instructor identifies gestures or behaviors practiced by different cultures around the world. (A sample list of gestures and behaviors and a brief description of their origin are contained in the Appendix.) He or she then makes two copies of each gesture on separate file cards or slips of paper. The appropriate number to actually use in the exercise depends on the number of participants. If there are 40 participants, the instructor needs two copies each of 20 gestures and behaviors. Prior to beginning the exercise, the file cards should be shuffled to ensure random distribution.

Participants

In most cases, the majority of the participants in the exercise share a common culture and often have little experience with another, or more than one other, culture. Therefore, each participant is randomly assigned an assumed culture. Each participant is given one of the file cards or instruction slips describing a gesture or behavior practiced in another culture around the world, but without identifying its cultural origin.

Itiitial Iiistructioris

The instructor introduces the exercise by noting that different cultures have different customs, values, and mores, and that accept- able behavior in one culture may seem unusual, rude, or threatening in another. The ability for business people to learn, understand, and even demonstrate different gestures and behaviors will improve their chances for success in an international business transaction.

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The instructor hands one slip with the gesture or behavior to each participant. Each participant is instructed to keep the information on the slip confidential until the exercise begins. (Sometimes it is helpful to print, “Confidential-Do Not Share This Information” at the top of each slip to reinforce this point.)

In addition, each participant is asked to take out a sheet of paper and a writing instrument, to leave other belongings at his or her desk or table, and to assist in clearing a large space in the room where the class can mingle and talk. The participant is instructed to write down the names of the individuals with whom he or she speaks over the course of the exercise. The exercise ends when everyone has found his or her fellow culture-mate and has acquired ten names.

The Setting

Participants are instructed to consider the setting a role play in which they are international business consultants attending a party to meet and “network” with other consultants and potential business partners. They are encouraged to choose a company, profes- sion or product that they represent as they circulate around the room, introduce themselves, and exchange information about themselves or their business. As they play the role of consultant, they are instructed to demonstrate their assigned gesture or behavior and to write down the names of the contacts that they make.

During tlie Exercise

After participants receive their slips, they often react uneasily to the assignments. They may laugh or exclaim, “I can’t do this!” when they read their assigned gesture. However, after a few mo- ments’ hesitation, they begin to mingle and greet and talk with each other using their assigned gestures.

Debrieflug tlie Exercise

After everyone has found his or her partner and acquired ten consulting contacts (typically 10- 15 minutes), the instructor leads a

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discussion of the exercise. The first set of questions investigates the impact of unfamiliar nonverbal gestures and behaviors. We ask participants how they felt during the exercise, how they responded to others, and what they thought of others’ behavior. Students in the United States are usually very willing to discuss their experiences and may share amusing anecdotes, e.g., trying to rub noses while another was sticking his or her tongue out in greeting. Participants from other countries where we have used this exercise, e.g., Moldo- va and Lithuania, are generally more reserved, but extremely curi- ous to learn more about the origins of the gestures and behaviors. In addition, we ask participants to identify the reasons for their reac- tions, responses, and thoughts. They typically realize that their discomfort comes from a lack of knowledge or understanding. We also ask them to share similar experiences they may have encountered while traveling or conducting business. We discuss those encoun- ters and the impact of culture on values and behavior. Finally, we end the discussion by asking if anyone recognized the origins of the gestures and behaviors and share the source and meaning of each gesture and behavior.

FOllow-Up

We use the exercise to discuss different cultural values and their implications for international business transactions. The goals of the follow-up include identifying cultural frameworks (such as Klock- horn and Strodtbeck‘s) that explain some of the differences in gestures and behaviors. These frameworks can be used to stimulate discussion (or generate hypotheses about) the gestures. For instance, “friendly” gestures (standing close, frequent touching) may occur more frequently in collectivist cultures. Emphatic use of one’s arms and hands in conversation may occur more frequently in cultures with high “doing” activity levels.

The goals also include sharing specific examples where cultural differences affected international business transactions. For example, a portfolio manager at an international bank was surprised at the reaction of his client, a representative from the central bank of an eastern European country. The client seemed unduly agitated over the failure of his country’s investment portfolio to achieve a specific rate of return. After further discussion, the portfolio man-

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8 JOURNAL OF TEACHING IN INTERNATlONAL BUSINESS

ager learned that the client faced execution if the portfolio did not earn a target rate. He quickly restructured the portfolio to ensure the minimum risk-free rate of return while allowing the possibility of some upside potential (Barnes, 1995).

Similarly, the Czech government recently awarded its lucrative telephone business to a partnership of Dutch and Swiss companies over higher profile German, French, and Italian rivals on cultural, not fmancial considerations (Hudson, King, & Murray, 1995 P.B. 13). Although the other bidders offered better financial incentives, their behaviors were offensive to the Czechs: “The Germans are seen in Prague as too bossy, the French have made enemies with their past privitizations that later went sour, and the Italians didn’t persuade the Czechs they’d bring the management help that [the telephone business] needs.”

DISCUSSION

This exercise awakens students to cross-cultural differences that affect international business transactions. It provides an opportunity to introduce them to some of the most basic of these differences and to frameworks representing the foundation of cultural differences. Finally, the exercise can lead to a discussion of how cultural issues affect managerial and financial interactions and policies.

Managerial Implicatiorts

Many organizations have found they need local cultural assis- tance as they market products and develop operations in other countries. In one case, a major door-to-door consumer products and cosmetics company decided to market its products in India. They abandoned their trademark strategy after learning from a local marketing consultant that Indians assumed only junk was sold door-to- door. Other companies have seen the huge middle income market in India and assumed they would experience quick profits. A razor company discovered that India had the largest market for razor blades, but found that they could not sell the highly profitable, plastic disposal razors. Indians (with their value for the past) turned out to be serious recyclers and hostile to throwing anything away

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(Jordan, 1996). Obviously, deep and specific knowledge and understanding of cultural values and differences are critical to making good management and marketing decisions.

Financial Iniplications

Many finance students are surprised to learn that “maximization of shareholder wealth,” the preeminent objective of American business, is not a goal fixed in stone. As one set of popular textbook author puts it, “. . . one must realize that the universal truths taught in basic finance courses are actually culturally determined norms” (Eiteman, Stonehill, & Moffett, 1995, p. 1 1 , emphasis in the origi- nal). Indeed, collectivist cultures often value maximizing employee job security and quality of life, at least as strongly, if not more strongly.

CONCLUSION

Students seem to enjoy the exercise and to remember what they have learned. For example, during an intense lecture later in the course, one student sat in his seat, quietly but intensely stroking an imaginary beard. This gesture, learned in the exercise, tells Aus- trians that someone’s comments or conversation has grown tiresome and boring. With quick understanding, the instructor moved to pick up the pace.

REFERENCES

Adler, N.J. (1991). International Dimensions of Organizational Behavior (2nd ed).

Axtell, Robert E. 1990. The Do’s and Taboos of Hosting International Visitors.

Axtell, Robert E. 1991. Gestures: The Do’s and Taboos of Body Language Around

Axtell, Robert E. 1993. Do’s and taboos around the world (3rd ed). New York:

Barnes, M. (1995). Presentation to the Mclntire School of Commerce Internation-

Chaney, L.H., & Martin, J.S. (1 995). Intercultural Business Communication. En-

Boston, MA: PWS-Kent.

New York: Wiley.

the World. New York: Wiley.

Wiley.

al Banking and Finance Course, Zurich, Switzerland, 9 June, 1995.

glewood Cliffs, NJ: Prentice Hall.

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Touch the person to whom you are talking a lot

Daniels, J.D. & Radcbaugh, L.H. (1993). International Dimensions of Contcmpo-

Eiteman, D.K., Stonehill, A.K., & Moffetl, M.H. (I 995). Multinational Business

Hudson, R.L., N. King, & Murray, S. (1995,29 Junc). Czechs Award Phone Stake

Jordan, Miriam. ( 1 1 Octobcr, 1996). Marketing Gurus Say: In India, Think Cheap,

Kluckhohn, F., & Strodtbeck, F.L. (1961). Variations in Value Orientations. Evan-

Morrison, T., Conaway, W.A., & Borden, G.A. (1994). Kiss, Bow, or Shake

rary Business. Reading, MA: Addison-Wesley.

Finance (7th ed). Reading, MA: Addison-Wesley.

to Swiss, Dutch. Tlie Wall %reel Joirrm~l, p. B 13.

Lose the Cold Cereal. Tlie Wall Sfice! Journal, p. A9.

ston, IL: Row, Peterson.

Hands: How to Do Business in Sixty Countries. Holdbook, MA: Bob Adams.

APPENDIX A. List of Sample Behaviors

In the Middle East, Latin America, Korea, Greece and Indochina it is quite common to touch frequently and signals friendship (Gestures, p. 43)

Behavior Explanation

you are talking 15” ‘cultural bubble’so they stand 24-30” apart. . . Latins and Middle Easterners stand much closer to one another

whom you are talking 15” ‘cultural bubble’so they stand 24-30” apart. . . Japanese stand much farther apart (Gestures, pp. 45-46)

Stroke an imaginary beard while the other person is talking

Nod your head up and down to say “NO” and side-to-side to say “Yes”

Maintain direct eye contact at all times while talking

In Austria, stroking an imaginary beard signifies someone’s comment is tiresome or boring (Gestures, p. 128)

Bulgaria, parts of Greece, Yugoslavia, Turkey, Iran (Gestures, pp. 60, 131)

North Americans look directly into the eyes (otherwise rude or a sign of weakness)- Japanese and Koreans avert eyes, avoid direct eye contact, . . . considered intimidaling or may indicate sexual overtones (Gestures, p. 117)

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Slowly rock your head back and forth, side-to-side while listening

Behavior 1 - Explanation

In India, this means “I am listening” . . . Westerners often confuse this with “No” (Gestures, p. 62)

Slap your fist of one hand into the palm of other while talkinp

Means “up yours” in Chile and France I (Geslures, pp. 86, 123)

Close your eyes and nod your head up and down slightly when the other person is talkino

In Japan, indicates attentiveness and respect (Gestures, p. 13)

Greet one another with a fake kiss to the cheek

Greet the other person by sticking out Used in some parts of Tibet (Gestures, your tongue I p. 75)

Among Latins, Southern Europeans and Russians, it’s common to greet both men and women with kisses to the cheeks (Gestures, p. 120)

Greet one another by rubbing noses New Zealand-Maori tribespeople ~ 1 (Gestures, p. 18)

Linger over your handshake and place one hand over the other or grasp the person’s elbow

Use “yeah” or “um” a lot when you talk

Italy, Southern Europe and Central and South America (Gestures, pp 24, 143)

Idiosyncratic within many cultures

~

Make a slight bow when introducing yourself for the first time

Denmark (Gestures, p. 133) . . . and Japan 1 of course

Fold your arms while talking

Speak very loudly while having a conversation

Indicates disagreement in many countries (Gestures, p. 78)

Idiosyncratic within many cultures

Blink your eyes a lot while talking In Taiwan, blinking the eyes is considered 1 impolite (Axtell 1990, p. 45)

~

Greet the other party by banging your hand on hislher head or shoulders

Eskimos greet each other by banging their hands either on the head or shoulders (Gestures, p 22)

Idiosyncratic within many cultures conversation

Gesture wildly when you speak I Idiosyncratic within many cultures

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Greet the other person by pressing your palms together as if praying and making a sllght forward bow

APPENDIX A (continued)

This action, the namasfe, is the traditional greeting in India (Gestures, pp. 176-177)

Behavior

If you are female, refuse to shake hands with a man. If male, refuse to shake hands with a woman

Explanation

In Islamic countries, it is forbidden for unrelated men to touch women, so they should never offer to shake hands Gestures, p. 23)

Greet the other person with applause

Greet the other person by nodding and flicking theeyebrows upward

Frequently Interrupt the other person while he/she is talking

The Yoruba, a major ethnic group in Nigeria, greet an important guest with applause (Gestures, p. 164)

In Fiji, people greet each other by nodding and flicking the eyebrows upward (Gestures, p. 175)

Puerto Ricans tend to interrupt each other frequently and are not upset when this occurs (Gestures, p. 215)

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