Overcome Culture Barriers-Example: Firms in Taiwan

Q4. How are the three high tech firms (Sun Microsystems, Microsoft and Intel) mentioned in this discussion managing to sidestep or overcome cultural barriers

Answer:

There are six cultural differences that affect MNCs: (1) language, (2) values, (3) interpersonal skills, (4) degree of ethnocentrism, (5) sex roles (6) decision-making processes. The three high tech firms have to examine these six differences in Taiwan and come up with suggestions and guidelines for starting business in Taiwan. I’ll introduce and focus on the values of Taiwan and how the three high tech firms resolve this barrier when they start business in Taiwan.

The people of Taiwan are very humble and family-oriented to the point where an individual who brings sham upon himself or herself will unintentionally sham the entire family. It means Taiwanese values family very much.

The term “Quan-xi” basically means in personal networks of influence and good connection which is mentioned on chapter 5 page 141. It also denotes on Taiwanese economic and political behaviors. The notion of “Quanxi”, along with” manzi” (face), has been well documented in intercultural comparisons between Asia and the West. A myriad of studies have theorized the concept to examine the aspects of interpersonal relationships in the Chinese context. It is obvious that “Quan-xi” or personal relationship, are very important to the citizens of Taiwan.

Furthermore, the three high tech firms also can apply to Hofstede’s cultural Dimensions as a managing tool to sidestep and overcome the cultural barriers between the US and Taiwan.

First, In chapter 4, page 107 to 110 has shown comparisons of cultural dimensions in 60 countries. On the figure 4-4, we can see Taiwan is at lower point (20) of Individualism (IDV) than the US (90) which means Taiwan is more collectivist and the US is more individualist.

Second, on the figure 4-5, we can see Taiwan is at higher point (60) power Distance (PDI) than the U.S (40) which means...