Multiculture and successful exporting

Good working relationships are crucial to successful exporting. When it comes to multicultural situations, failure to understand your client’s background can lead to risky business instead of a win-win outcome.

Have you ever walked away from a meeting, completely baffled by why you failed to succeed at achieving any goals? Those who work in the export business are more than likely to experience this sense of bewilderment and frustration, due to the influence of cultural differences. Failure to understand differences in value systems can lead to miscommunication, delays, and even lost business. 

The following scenario demonstrates a case where a lack of social and cultural awareness resulted in less than stellar results. An Australian software vendor’s team had scheduled a project status update meeting in Kuala Lumpur with a Malaysian client. The agenda, prepared by the vendor, started with a proposal for the architecture of a new software solution. Although the vendor had been pushing for a decision for several months, the team was aware that the Malaysians were still not prepared to sign off on their recommendation.

After the usual exchange of niceties, the Malaysian project director, Aminah Ibrahim, addressed the first item on the agenda saying, “Datuk Ahmad still is not comfortable with the proposal”. The Australian project manager, David McWilliams, responded: “But, Aminah, you know very well that we’ve asked countless times for a meeting with Ahmad to explain the proposal to him and he is never available. Moreover, each of you,” he said as he named and pointed his finger at the Malaysian team members, “have gone over the proposal with a fine-tooth comb many times! Let me remind you that the longer it takes to get sign off on the architecture, the more costly the total installation will be!”

The Malaysian project director glanced at her Malaysian team then looked down at her open palms and said, “Well, David, on that note, let’s adjourn until we all meet tonight for an early dinner”.

The Australian project manager responded, “Oh, sorry. I forgot to mention that we’re catching the afternoon flight back to Sydney. Maybe next time?”

On hearing this, the Malaysian team members stood up together and left the room.

What went wrong? Taking a closer look at the words and actions of both teams can provide some important clues regarding the importance of underlying values in this, and similar multicultural business meetings. 

According to Dr Asma Abdullah, a Kuala Lumpur-based cultural expert, this type of situation is quite common when Anglo Saxon managers–who tend to be egalitarian, time-conscious and direct–work with Malays, who are hierarchy-driven, indirect, and not so time-bound.

Confusing actions and interactions between different cultures can often be blamed on a divergence in values. In this case the importance of consensus seeking, group affiliation, face-saving, and paternalism to the Malaysians versus the Australian tendency to value forthrightness, practicality, egalitarianism, and informality was a major cause of friction.

Malaysian Customs

According to Dr Abdullah, Malaysians share a strong sense of belonging, gotong royong or cooperation, and a spirit of collectivism that requires one to seek the views of colleagues before making significant decisions. So, in the case above, Ibrahim was unwilling to make a significant decision until her senior colleague was satisfied with the recommendation.

Group affiliation is another key value in Malaysian culture. Malaysians typically are involved in a system of relationships with colleagues and associates that contribute to a spirit of togetherness, founded on unwritten rules of trust and understanding. These relationships tend to take precedence over contractual obligations or a task. More often this value stems from common interests and backgrounds based on family affiliation and ethnicity. In this case, Ibrahim needs what she feels is sufficient time with the outsiders, including numerous meetings during business hours and after hours, to establish trust.

A strong sense of social sensitivity and shame encourages Malaysians to consider the feelings and reputation of other parties during an interaction, particularly if the others share one’s racial heritage. Face-saving is intended to prevent damage to relationships and preserve the reputation of the other party. So, in the case above, Ibrahim reacted negatively to confrontation and what she viewed as overly casual or forward forms of address, such as using first names and dropping titles.