Siah Hwee Ang: Cultural fit not black and white

A performer dressed in a Qing dynasty court costume carries a banner during a ceremony at the Ditan Temple Fair for Lunar New Year, in Beijing, China. Photo / Natalie Behring

Differences among Asian markets can be puzzling but don't have to be an unbeatable obstacle. Part three of a six-part series

It is well established that "cultural differences" exist between New Zealand and Asia, which of course must be taken into account when an organisation seeks to establish itself in the Asian market. However, there is a tendency for organisations to place all the blame for poor performance on this over-used phrase, rather than considering the other reasons they might be underperforming.

Nonetheless, let's take a look at this issue of cultural difference. Examples of simple, everyday differences are plentiful. One involves the colour red, which is considered auspicious in many Asian countries, while black and white are not welcomed in many Asian contexts and circumstances. Another example: at a business dinner table in New Zealand it generally does not matter who sits where and who gets to tuck into the food first, but in Asian cultures either the guest or the head of the table (normally the most senior person or the host) always starts the meal.

These, however, are straightforward and standalone examples -- how do we relate them to business operations and success?

At the back of our minds, we believe we know what cultural differences are and many of these appear more obvious when you are overseas. I can recall going to some restaurants in the less Westernised cities of China and ordering food for everyone because the menu was written in Chinese characters with not a single English word. You can imagine how "different" my peers felt at that time!

Academics struggle to quantify the extent and importance of cultural differences. This can make it difficult to understand, explain and perhaps deal with challenges that relate to these differences. My sense is that while they can indeed be a barrier to doing business successfully in Asia, we tend to give cultural differences too much credit.

Some organisations deal with this perceived issue by taking a hands-off approach, letting local partners and employees run the show. This is not always successful, however, often leading to loss of control.

Other organisations send employees deemed to have high cultural intelligence or cultural sensitivity to the foreign market as they are more likely to be able to adapt to the local context. However, while these people may understand the local culture and act accordingly, they might not have much influence on situations or conflicts where there are cultural differences. Additionally, if the person on overseas assignment is living in an expatriate zone, one wonders how much they are learning about cultural differences.

In my view, nothing beats personal experience. Managers can join trade missions that seek to establish business connections in foreign markets. The more direct interaction they have with Asian businesspeople, the more understanding they will gain. Spending time with Asian foreigners who are here is a relatively cheap way to get started. In particular, those who have just arrived recently in New Zealand bring with them their home-country practices and assumptions on how things are done. This enables us to tap into Asian market knowledge from afar.

There was recently a story in the Chinese news about how the new generation of Chinese celebrates Christmas, but doesn't forget about the big occasion of the lunar Chinese New Year. This example, I feel, is how we can deal with the question of cultural differences. It is possible to come to terms with cultural differences.

We should find ways to embrace them rather than think about influencing change or trying to align the different cultures. This will give us more time to focus on improving performance.

*Professor Siah Hwee Ang is BNZ chair in business in Asia at Victoria University.