1.0 Introduction

Currently, owing to the increased globalisation, intercultural communication has become a significant area of organisation operations. To support this view, Wales et al. (2019) research hypothesised that cross-cultural communication is currently strategically relevance for organisations owing to increased global business growth, technology and internet. Hence, an understanding of cross-cultural communication is core for organisations engaging diverse employees or planning in pursuing global business. As a best practice, Nam and Kannan (2020) argued that this focuses on how individuals of different cultures are speaking, communicating and perceiving the world around them. Based on this background information, this report focuses on a German Electronics Company interested on partnering with third-party Manufacturing Firm in China for assembling household electrical goods. Through a focus on this organisation, the cultural differences in doing business in Germany and China has been evaluated. Also, relevance or lack thereof of network relationships and intercultural communication for ensuring collaboration and partnerships work has also been put into account. Finally, the influence of leadership traits on business synergies in intercultural business domains has been evaluated.

2.0 Cultural Differences in doing Business in Germany and China

Adopting the definition of Kim and Lee (2020), cultural differences include different beliefs, behaviours, languages, practices and expression which are noted as unique to members of a particular ethnic group, race and national origin. By focusing on a multi-national business context, Beugelsdijk et al. (2020) noted the cultural differences as contributing to individuals relationships with their external environment. This is due to the differences in scope of self-disclosure, assertiveness, willingness of cooperating, maintaining their positions of people and shared interpersonal style. For identifying these differences, Gerlach and Eriksson (2021) identified on the need for understanding the differences in culture in different countries and discerning the approaches of business implementation in the various cultures. This is through a focus on focusing on the factors illustrated in figure 1;

Figure 1: Hofstede Cultural Dimensions

Therefore, considering this model, it is possible to adopt the Hofstede Cultural Dimensions for evaluating he cultural differences of doing business in Germany and China.

Power Distance

Adopting the definition in Alabri et al. (2020), power distance identify the scope in which less powerful members in a country society expect and accept power as unevenly distributed. This is based on how a culture handles the issue of society inequality. Considering the fact that social relationships are highly valued in China, it can be noted as being characterised by high power distance. Conversely, in Germany, being routine oriented, Sattorovich (2020), argue that they ensure that they are treating each other equally, encouraging each other to have a say and align critical decisions. For corporate culture, Germany is defined with decentralisation and flat hierarchy. This is with China having centralised with multiple executive authority being taken down to subordinates. Hence, for the German Electronic Company, venturing into the China market would require a blend of centralised and decentralised cultures for success of their operations. However, abiding with government regulations is essential since they are majorly involved in business as opposed to Germany where trade people are engaged.

Individualism Vs Collectivism

As evidenced in Huang and Crotts (2019), this is used in identifying the scope of interdependence society maintains amongst its members. Considering China, the society is categorised as highly collectivist with individuals acting on interests of groups rather than themselves. This is as opposed to Germany which is identified in Özkarar-Gradwohl et al. (2020) as an individualistic society. Considering this, for the German Electronic Company, venturing in the Chinese market would mean that employees commitment to the entity is substantially low. This is with relationships with colleagues assuming a cooperative approach for in-groups.

Uncertainty Avoidance

According to Arshad and Ibrahim (2019) this represent a cross-cultural phenomenon describing the extent in which various cultures or societies react to and tolerate uncertainties. Considering Germany, it is defined as having high uncertainty avoidance which inform their trend of minimising uncertain situations in their institutions and relationships by embracing legislations. Conversely, as noted in Hofstede Insights (2022) Chinese culture is characterised by high-level ambiguity. This is evidenced by their adaptability levels and entrepreneurial. Hence, fir the new Electronic Company, venturing into the sector would lead to a prompt acceptability owing to the openness of the culture.

Masculinity Vs Femininity

In Gannouni and Ramboarison-Lalao (2019) research, masculinity is identified as a characteristic found emphasising on being ambitious, wealth acquisition and differentiated gender roles. This is different from femininity which is viewed as a characteristics which is stress caring and nurturing behaviours, equality, environment awareness and fluid gender roles. In Hofstede Insights (2022a) report, Germany had been scored at 66 hence a strong masculine society with China scoring an equal value of 66. Hence, it can be argued that both countries adopt a masculine society where performance is significantly valued and wanting to do their best. Hence, similar to Tehrani et al. (2021) findings, the organisation venturing into the Chinese market would mean immense efforts put for leveraging on competitive advantage and dominate the market. Nevertheless, they would be impacted by state operated trade union since Germany operates labour unions.

Restraint Vs Indulgence

This dimension identify the scope in which people put efforts in controlling their desires and impulses informed by the manner they were raised. According to Chudnovskaya and O’Hara (2022) a weak control is indulgence with strong control being restraint. Considering China, Jie (2015) argue that with a scope of 24, it is fairly a restraint society. This is with Germany scoring 40 which is an indicator of having a strong restraint compared to China. Hence, for both societies, tight rules and also morality are upheld. However, in Germany, personal space is a guarantee such as Walmart in Germany while in Chine there are no personal space. This provides an appropriate opportunity for the organisation to fully fit in the Chinese society and dominate the market.

Long Vs Short-term Orientation

The long-term orientation is defined with focusing on future, perseverance and delays in short-term gratification for future gains. This is while short-term orientation defined with prompt gratification, social obligations fulfilment and concerns on social hierarchy. Considering the guidelines in Management Study Guide (2022), Chinese are known for having a long-term orientation hence tend to think in long-term contrary to short-term. This is similar to Germany which adopts a pragmatic approach for this dimension. The scope of their orientation is nevertheless distinct since in Germany they tend to be innovative with China being copy pasting as opposed to being innovative. This is through managing all challenges in their society while at the same time enhancing the satisfaction of all citizens. Hence, by venturing into the Chinese Market, the organisation would have to have a long-term orientation in terms of their strategy and goals.

3.0 Barriers and facilitators to network relationships and intercultural communication among diverse business cultures

3.1 Network Relationships in Making Collaboration and Partnerships Work

Adopting the definition in Hyder (2008) network relationships is an art involved to meet………………………

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