“ South Africa meets Asia”

Introduction: Culture deals with elements such as beliefs, arts, morals etc. (Cateora et al, 2009) Differences must be understood to be culturally sensitive This may aid in developing business relationships

Culture deals with elements such as beliefs, arts, morals etc. (Cateora et al, 2009)

Differences must be understood to be culturally sensitive

This may aid in developing business relationships

Problem and Aim: Determine cultural differences between South Africa and Japan/Thailand How the dimensions of culture affect Island View Shipping (IVS) operations The role which relationships play in business transactions.

Determine cultural differences between South Africa and Japan/Thailand

How the dimensions of culture affect Island View Shipping (IVS) operations

The role which relationships play in business transactions.

Theoretical Discussion: Culture is: How we think, feel and act Based on the environment where people live A group phenomena Learnt, not inherited Neither right nor wrong (Hofstede, 2005: 3 - 6)

Culture is:

How we think, feel and act

Based on the environment where people live

A group phenomena

Learnt, not inherited

Neither right nor wrong

(Hofstede, 2005: 3 - 6)

Theoretical Discussion: Cultural acts are perceived differently (e.g. Handshake) Problem solving techniques are different Values must be assigned Variations must be understood to develop relationships (Trompenaars, 2002: 13 – 16)

Cultural acts are perceived differently (e.g. Handshake)

Problem solving techniques are different

Values must be assigned

Variations must be understood to develop relationships

(Trompenaars, 2002: 13 – 16)

5 Dimensions of Culture Power Distance Individualism vs. Collectivism Masculinity vs. Femininity Uncertainty Avoidance Long Term vs. Short Term orientation

Power Distance

Individualism vs. Collectivism

Masculinity vs. Femininity

Uncertainty Avoidance

Long Term vs. Short Term orientation

Cultural Model:

Research Questions: 1. What are the key cultural differences IVS faces when conducting international business? 2. How do managers of IVS manage cultural differences in order to build long-term international relationships? 3. Do cultural differences create problems for IVS? 4. How do cultural differences contribute to the operation of IVS? 5. How do the cultural differences the firm faces affect the leadership?

Data Collection: Snowballing/Purposive approach Antony Brown interviewed at Island View Shipping’s head office in Durban Russell Wright interviewed at his residence Semi-Structured, individual in-depth interviews based on Hofstede’s 5 dimensions of culture. Controlled by the Researchers Interviews lasted +- 1 Hour

Snowballing/Purposive approach

Antony Brown interviewed at Island View Shipping’s head office in Durban

Russell Wright interviewed at his residence

Semi-Structured, individual in-depth interviews based on Hofstede’s 5 dimensions of culture.

Controlled by the Researchers

Interviews lasted +- 1 Hour

Background of Island View Shipping Established in 1976 by The Tiger Oats Group Acquired by Grindrod in 1999 Ships between 15 – 18 million Tonnes per annum Joint Shareholder in Island Trading and Shipping which is based in Singapore

Established in 1976 by The Tiger Oats Group

Acquired by Grindrod in 1999

Ships between 15 – 18 million Tonnes per annum

Joint Shareholder in Island Trading and Shipping which is based in Singapore

Research Findings: Objective 1: What are the key cultural differences Island View Shipping faces in international business? Management Style Degree of Adaptation Power Distance Index Affiliation and Social Acceptance Power and Achievement Communication Style Gender bias Corruption and Bribery Culture Type Other Cultural Elements

Research Findings: Objective 2: How do managers of IVS manage cultural differences in order to build long-term relationships? Island View Shipping sends their employees on a culture course prior to proceeding to do conduct international business. The employee also utilises the internet to further research culture

Objective 2: How do managers of IVS manage cultural differences in order to build long-term relationships?

Island View Shipping sends their employees on a culture course prior to proceeding to do conduct international business.

The employee also utilises the internet to further research culture

Research Findings: Objective 3: Do cultural differences create problems? Open Minded Policy Adapt to Other Cultures “ So long as you are humble, respectful and present yourself in a courteous way – that transcends into the majority of cultures” (Russell Wright) However, one incident was mentioned in which a Danish manager was unable to adapt to the Asian culture and shortly left

Objective 3: Do cultural differences create problems?

Open Minded Policy

Adapt to Other Cultures

“ So long as you are humble, respectful and present yourself in a courteous way – that transcends into the majority of cultures” (Russell Wright)

However, one incident was mentioned in which a Danish manager was unable to adapt to the Asian culture and shortly left

Research Findings: Objective 4: How do cultural differences contribute to the operations of IVS? Communication Style Management Style Employee Diversity

Objective 4: How do cultural differences contribute to the operations of IVS?

Communication Style

Management Style

Employee Diversity

Research Findings: Objective 5: How do cultural differences affect the leadership? Leadership style in Thailand is much more formal. There is no direct access to higher management. Titles are important in Thailand, as people like to think they are dealing with someone with authority.

Objective 5: How do cultural differences affect the leadership?

Leadership style in Thailand is much more formal.

There is no direct access to higher management.

Titles are important in Thailand, as people like to think they are dealing with someone with authority.

Analysis Objective 1: Different in Power Distance, Masculine vs. Feminine “ Grey area” in Individualism vs. Collectivism Daily culture transcends into business culture Other cultural elements have little impact on business

Objective 1:

Different in Power Distance, Masculine vs. Feminine

“ Grey area” in Individualism vs. Collectivism

Daily culture transcends into business culture

Other cultural elements have little impact on business

Analysis Objective 2 and 3: No major problems because of adaptation and previous experience in SA Objective 4: Understanding of cultural relativism and SRC Objective 5: Local way of doing business prevails but change is possible

Objective 2 and 3:

No major problems because of adaptation and previous experience in SA

Objective 4:

Understanding of cultural relativism and SRC

Objective 5:

Local way of doing business prevails but change is possible

Conclusion:

Recommendations for future research Wider scale More Hofstede’s culture dimensions Success factors in shipping business Who is meant to adapt to the new culture? The host or the guest?

Wider scale

More Hofstede’s culture dimensions

Success factors in shipping business

Who is meant to adapt to the new culture? The host or the guest?

End of Presentation