studying the influence of cross-cultural differences on the international market



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1: Introduction 

1.1 Research Background 

The concept of “cross-cultural difference” is impacting the global market. Culture is highly affected by the international market because people come from different backgrounds. Moreover, “cross-culture difference massively impacts the international business markets in different ways. Following these factors a discussion will be provide the basic idea of cultural diversity and people's trends to live within cultural borders (Sarwar et al. 2020). This research paper will present that most companies have faced these challenges, including languages, lifestyles, customs, religions, and believes. Moreover, in-depth analysis will help investigate the cross-cultural differences that highly impact the international market.

1.2 Problem Statement 

Cross-cultural purchasing tendencies are greatly impacted. Additionally, firms must focus on the global market since it emphasises having extensive information related to cultural understanding. This cross-cultural issue therefore affects their brand positioning and company performance on the global market. On the other hand, before extending their business to a new market, businesses need to thoroughly understand the regional cultures of the global market. Barriers to communication are another important problem for international business (Tien et al. 2019). These different cross-cultural communication issues affected the marketing practices of the global business. 

1.3 Research Aim and objectives 

The primary aim of this proposal is to understand the influence of cross-cultural differences in the international market with supportive discussion and evidence. 

Research Objectives 

  • To understand the impact of cross cultural differences in the international market. 
  • To determine cross cultural differences using Hofstede's cultural model. 
  • To identify the significant challenges faced by international marketers while operating in foreign countries. 
  • To present critical analysis on the suggestions for solving cultural differences in the international market for future developments. 

1.4 Research Questions 

  • What is the impact of cross cultural differences in the international market?
  • What is cross cultural differences of Hofstede's cultural model? 
  • What significant challenges are faced by international marketers while operating in foreign countries?
  • What are the suggestions for solving cultural differences in the international market for future developments?

1.5 Research rationale 

This rationale of the research will demonstrate the importance of the dissertation as well as show the different issues of cross-culture which are impacting global business performance. In addition, based on this research will indicate that cultural differences also affect consumer buying trends. Similarly, it will also state that many organizations face these challenges, including language, culture, equity, diversity, region and others. Moreover, the influence of cross differences in the international market would be observed in this research paper, which affects business performance. In addition, this study will investigate the future development of the research topic and bring positive results by this search study.

2: Literature Review 

2.1 Understanding the cross-cultural differences using Hofstede's cultural model

Geert Hofstede created the "Hofstede cultural Dimensions theory", which is regarded as a framework for comprehending variances across cross-cultural boundaries. According to Minkov and Kaasa (2020), the six factors of the six dimension theory power distance, individualism-collectivism, short-term vs. long-term orientation help to understand cross-cultural variations. The use of the power distance index reflects the degree of observed inequality in societies and is classified in accordance with social hierarchies (Sochor, 2020). Low power indices indicate that stronger authority dominance is more common in those nations. 

Figure 1: Hofstede's cultural model

(Source: emersonautomationexperts, 2021)

The second criterion, individualistic societies vs collectivist societies, states that it stresses the concept of achievement and individual rights. On the other hand, the clustered relationships between groups. Therefore, as mentioned by Kąkol et al. (2018), from this perspective, the cross-cultural differences are stated based on the views that are observed from communication patterns. Under the uncertainty index, high uncertainty avoidance index assists a low tolerance; on the other hand, a low uncertainty index indicates a low tolerance of uncertainty. Additionally, the working of the masculine society is visible to provide a base for courage, assertiveness and competition. On the other hand, high femininity provides better maternity leave policies (Sent and Kroese, 2022). Therefore, based on this Model of cultural dimensions, the cultural differences are among the six dimensions.

2.2 Effect of cross-cultural differences on the international market

While operating in the global sphere, cross-cultural differences play a vital role in affecting the working of the entire international market system. According to Jadil et al. (2022), there are apparent differences between the opinions of different people from and across different nations. Therefore, this affects the business delegates and allows their functionality at the international level. The international market faces negotiation issues, which means that since every person affirming the international code of business has a different opinion, people in business witness different modes of having and propagating negotiation (Kaasa, 2021). 

Figure 2: Influence of cross-cultural differences

(Source: mbaknol, 2019)

There are always rules and differences in individual approaches toward the same proposal. Besides this, Wang, (2021) stated there also comes a concept of difference in personal style, which means that every international market has different communication motions and, therefore, is presented by ambassadors based on different personality styles. Different nations communicate from different notes; therefore, the concept of formalities stays different from one another. On this note, it is essential to add that different personality styles affect the communication styles between different personalities from different international grounds (NEGRUSA and HOREA, 2020). Confrontations are observed between the different styles of communication, and different sorts of negotiation styles are observed between different nations, which calls for an effect on the international business market. Another final factor that causes irregularity in the working of the international market is the operation of the emotional factor (Nazir and Islam, 2020). This means that various cultures have different rules and are brought to the business table while discussing elaborations and rules regarding any international business. 

2.3 International issues of business affected due to cross-cultural differences

While operating in the international market, business persons face various issues that affect the working of the big corporation. As ventures are done in international business, cultural differences operate and reign. Language barrier causes problems for international business persons as they procure effective communication for business purposes. As per Ahlstrom et al. (2020), the language barrier also affects the simultaneous working of the communication process. This is said so because when a marketer from a different background comes in contact with another marketer with different cultural background, instances do occur when both of them face difficulty in establishing proper communication between them. 

Figure 3: Key factors that affect cross-cultural competence

(Source: basiq, 218)

Besides the language barrier creating issues for marketers, communication is also observed to be affected as the convincing part of the marketers is observed to get hampered (KARADEMİR, 2019). Issues regarding interactive gestures, which means a familiar gesture in one country, maybe uncommon and offensive in another. Therefore based on this, the marketers identify the needed gesture that guarantees the fundamental approach for communication and carrying out business applications. Paul and Mas, (2020), said that the issues marketers face while operating in international markets are workplace etiquette. This means the required special attention to the formalities are some of the etiquettes that are disturbed by different cultural aspects and need formal addressing (Al-Henzab et al. 2018). However, the type of formal address that needed to be given highly disturbed the working of the different international grounds. 

2.4 Organizational development using a strategic method of cross-cultural diversification

The above discussion sections clearly show that cross-cultural concepts need to be remembered to proclaim and run the business effectively and efficiently (Zhao et al. 2021). To run the business effectively, essential steps must be followed, which will affect the business's work. Practising self-awareness is the first skill that is needed to be adopted by any international market entering company. 

Figure 4: Organizational strategy for cultural transformation

(Source: barrettacademy, 2020)

On this note, it is worthy to state that practising self-awareness also helps gain solid ground on the significance of the international market, and it becomes easier for businesses to expand and work internationally. Along With this, language management is an essential point that needs to be focused on to get the needed support for establishing a firm ground of communication (Budur, 2020). Multicultural work needs good understanding within them, which will be focused and worked on with the assistance and working of the passive activity as supported by the conversation analytics. Equal opportunities are also observed to be created because of cultural bias working on the concrete ground. 

2.5 Literature Gap 

Numerous research hurdles and constraints that had an impact on the study's quality and efficiency had to be addressed by the writer in order to finish the research report. The report only focused on the cultural differences in the international market but it has huge potential to discuss its in-depth factors, influences and actual results. Further the discussion could address how the cultural differences can solved easily with different theoretical concepts and practices for better outcomes in the international business markets. 

3: Research Methodology 

3.1 Research onion 

Figure 5: Research onion

(Source: Pham, 2018)

3.2 Research Philosophy 

This research paper will follow the “interpretivism philosophy” to assess the research gap of the study. In addition, this “interpretivism philosophy” will be able to find out the essential points which will be understood through the research topic (Pham, 2018). Furthermore, this observational study will help the researcher to discuss the research direction thoroughly. 

3.3 Research design 

This research design is mostly used in the methodology chapter of the research topic. The excellence of the research design will aid in understanding the deciding techniques and directions to obtain ethical outcomes through the research analysis. This research design will mainly use an “explanatory research design” which would comprehend the aim of the research (Krichene and Baklouti, 2020). Furthermore, this research design will help to complete the standards of the research questions. 

3.4 Research approach 

The research approach is essential for any research paper to sustain a satisfactory research paper. In addition, the “inductive research approach" would be used to recognize the significant ingredient of the research paper (Fleischmann and Ivens, 2019). This “inductive research approach” will assist in investigating and gathering the proper evidence of the research topic, which will define the potential outcomes of the study. 

3.5 Data collection method 

The data collection methods play an essential role in the research paper which will help to gather information about the research topic. Furthermore, this data collection method will use a “qualitative research strategy” which is an effective method for collecting the information on the research questions (Nunes, Farinha and Barbosa, 2019). Moreover, this appropriate data collection method will use the observational-based qualitative research approach.

3.6 Data collection source 

This “secondary data collection source” will use to explore the findings of the research topic (Oyebode, 2019). This secondary data collection method will help to collect the information through online sources, research publications, journal articles, websites, blogs and others. Similarly, this data collection source will be effective because it will be saved time and money as well as it will be used quickly and easily in gathering more information on the research topic.

3.7 Sampling 

This research paper will use the proper evidence and data, which will be collected through the proper sampling methods. In addition, this research paper will use “Convenience sampling", and it will help to focus on collecting data from the pertinent sample information and accurate sources (Stratton, 2021). Furthermore, this sampling technique will collect massive information and evidence with the research effort as well as it will save time.

3.8 Data analysis 

This research paper will research to the conclusion by obtaining several journal articles, research papers, blogs, and academic sources. Similarly, this “thematic analysis” will discuss the important components of online data collection methods (Neuendorf, 2018). On the contrary, this “thematic analysis” will be able to mitigate the objectives of the research paper through the appropriate investigation. 

3.9 Ethical considerations 

Ethical considerations are important for verifying the numerous information, topic, and data that will be collected data, and research principles will be followed during this research paper. The researcher will follow the research principles such as transparency, dependability, and more. Moreover, this “Data Protection Act" will promote the method of gathering, storing, and processing data, which will be followed during this research.

3.10 Gantt chart - No words 

Figure 6: Timeline of the project 

(Source: Self-developed)

3.11 Research Limitations 

The primary drawback, which has the potential to significantly affect the study, is the gathering of skewed data based on individuals' own opinions. Information on cross-cultural differences in the global market, it should have been taken into account to gather information from secondary sources and analyse it. Therefore, considering that gathering secondary qualitative data could have been more efficient for assuring the development of sufficient study results (Rosinger and Ice, 2019). This may have given the study a high degree of dependability.

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Budur, T., (2020). Effectiveness of transformational leadership among different cultures. International Journal of Social Sciences & Educational Studies, 7(3), pp.119-129., (2021). 

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Jabil, Y., Jeyaraj, A., Dwivedi, Y.K., Rana, N.P. and Sarker, P., (2022). A meta-analysis of the factors associated with s-commerce intention: Hofstede's cultural dimensions as moderators. Internet Research, (ahead-of-print). 

Kaasa, A., (2021). Hofstede, schwaInglehartinglehart into a single system. Journal of cross-cultural psychology, 52(4), pp.339-353. 

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