The Impact of Globalization on Cross-Cultural Communication
Lowell C. Matthews and Bharat Thakkar
Additional information is available at the end of the chapter http://dx.doi.org/10.5772/45816 1. Introduction
In a global environment the ability to communicate effectively can be a challenge. Even when both parties speak the same language there can still be misunderstandings due to ethic and cultural differences. Over the last decade, there have been countless examples from the business sector that demonstrate how poor communication can lead to poor organizational performance. Understanding the impact of globalization on cross-culture communication is imperative for organizations seeking to create a competitive advantage in the global market. Recent economic challenges further highlight the need for organizations to develop the internal communication capacity necessary to control and monitor external threats. As society becomes more globally connected the ability to communicate across cultural boundaries has gained increasing prominence. Global businesses must understand how to communicate with employees and customers from different cultures in order to fulfill the organization’s mission and build value for stakeholders. The use of technology has had a profound impact on how businesses communicate globally and market their products and services. However, with the advancements in technology organizations must still be cognoscente of the culture nuisances that can potentially present obstacles in trying to increase profits and market share. According to Genevieve Hilton, “cultural proficiency doesn't mean memorizing every cultural nuance of every market. It's knowing when to listen, when to ask for help, and when—finally—to speak” [1].
For companies involved in global business operations the relationship of managers and subordinates in multinational firms is important. In research conducted by Thomas and
Ravlin [2] it was found