University of Nebraska at Omaha International Business Discussion

National Environmental Differences
CHAPTER 2
Culture
OBJECTIVES
After studying this chapter, you should be able to
2-1 Explain why culture, especially national culture,
is important in IB, but tricky to assess
2-2 Grasp the major causes of national cultural
formation and change
2-3 Discuss major behavioral factors influencing
countries? business practices
2-4 Recognize the complexities of cross-cultural
communications
2-5 Analyze guidelines for cultural adjustment
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If you see men stroking their beards, stroke
yours.
Tower in Riyadh,
Saudi Arabia.
?
Source: Salem Alforaih. Shutterstock
?Arab proverb
PART TWO
CASE
Saudi Arabia (see Map 2.1) can be perplexing to foreign managers
as they try to exercise acceptable personal and business behavior.1 Its mixture of strict religious convictions, ancient social traditions, and governmental economic policies results in laws and
customs that often contrast with those in other countries, shift
with little advance notice, and vary by industry and region. Thus,
foreign companies and employees must determine what these
differences are and how to adjust to them. A brief discussion of
a sample of Saudi traditions, cultural norms, and foreign operating adjustments should help you understand the importance of
culture in IB.
A LITTLE HISTORY AND BACKGROUND
Although the land encompassing the Kingdom of Saudi Arabia has
a long history, during most of that history invaders controlled a
divided land and most inhabitants had a tribal rather than national loyalty. Nevertheless, the inhabitants have shared a common
language (Arabic) and religion (Islam). In fact, Saudi Arabia is the
birthplace of Islam and the location of its two holiest cities, Mecca
and Medina. (The opening photo shows the Nabawi Mosque at
Medina, the second holiest mosque in Islam.) King Ibn Saud, a descendant of Mohamad, took power in 1901, merged independent
areas, created a political and religious entity, and legitimized his
monarchy and succession by being the defender of Islamic holy
areas, beliefs, and values.
The growing importance of oil for Saudi Arabia, particularly since
the 1970s, led to rapid urbanization and gave the government the
means to offer social services such as free education. These changes
have furthered its citizens? sense of a national identity, while diminishing their traditional (particularly nomadic) ways of living. Cities
have modernized physically. However, below the physical surface,
Saudis hold some attitudes and values that are neither like the norm
elsewhere nor easily discerned.
Modernization has been controversial within Saudi Arabia.
A liberal group, supported by an elite foreign-traveled segment,
wants economic growth to provide more choices in products and
lifestyles. A conservative group, supported by religious leaders, is
fearful that modernization will upset traditional values and strict
Koranic teachings. The government (the Royal Family) must satisfy
conservative viewpoints, lest its leadership becomes vulnerable.
For instance, Iran?s Islamic Revolution was spearheaded in part by
dissenters who viewed the Shah?s modernization movements as
too secular. Meanwhile, liberals have been largely pacified by taking well-paid government jobs and slowly gaining the transformation they wish. The government has sometimes made trade-offs to
Saudi Arabia?s Dynamic
Culture
appease conflicting groups, such as requiring women to wear longer robes (women must wear abayas and men customarily wear
thobes) in exchange for advancing women?s education. However,
the abayas, traditionally black, are increasingly in more modern
designs and bright colors.
THE RELIGIOUS FACTOR
If you are accustomed to fairly strict separation between religion
and the state, you will probably find the pervasiveness of religious
culture in Saudi Arabia daunting. Religious proscriptions prohibit
pork products and alcohol. During the holy period of Ramadan,
when people fast during the day, restaurants serve customers
only in the evening. Restaurants such as McDonald?s dim their
lights and close their doors during the five times a day that Muslim men are called to prayer. Many companies convert revenuegenerating space to prayer areas; Saudi Arabian Airlines does this
in the rear of its planes, the British retailer Harvey Nichols in its
department store.
However, there are regional differences. In Riyadh, women customarily wear niqabs that cover their faces. But in Jeddah, which has
more contact with foreigners and is less conservative, dress codes
are more relaxed and fewer women wear them. Nevertheless, merchants routinely remove mannequins? heads and hands and keep
them properly clad to prevent public objections. IKEA even erased
pictures of women from its Saudi catalogue.
Rules of behavior may also be hard to comprehend because
religious and legal rules have sometimes been adapted to contemporary situations. Islamic law, for instance, forbids charging interest and selling accident insurance (strict doctrine holds there are no
accidents, only preordained acts of God). In the case of mortgages,
the Saudi government offers interest-free mortgage loans instead.
It allows accident insurance because Saudi businesses, like businesses elsewhere, need the coverage.
Nor are expected behaviors necessarily the same for locals
and foreigners. Non-Muslim foreign women are not required to
wear head scarves, although they may be admonished by religious patrols. Saudi Arabian Airlines does not hire Saudi women as flight attendants (being in direct contact with men might
tempt promiscuous behavior), but it hires women from other
Arab nations. In addition, the government permits residents of
compounds, inhabited largely by Americans and Europeans, to
dress therein much the way they do back home. However, in an
example of a reverse dress code, some compounds prohibit residents and their visitors from wearing abayas and thobes in their
public areas.
CH APTE R 2
MAP 2.1
71
Culture
Saudi Arabia and the Arabian Peninsula
The kingdom of Saudi Arabia comprises most of the Arabian Peninsula in Southwest Asia.The capital is Riyadh. Mecca and Medina are Islam?s holiest cities. Jeddah is the
most important port. All of the country?s adjacent neighbors are also Arabic?that is, the people speak Arabic as a first language. All the nations on the peninsula are
predominantly Islamic.
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