Adrie's Blog

Differences in Culture

This past week, E.Factor organised a panel discussion about the cultural differences that exist in doing business with India, Russia and the US. It was a lively evening with a lot of questions being asked. If you weren't there, you can still see the videos by clicking here

In the first place, let me say that there were a lot of similarities that came out of the discussion. In all three countries you have to deal with the shere size and therefore logistics and communication play a major role. Also important in any of the above, is the need to find a reliable and trustworthy partner.

Regarding India, as discussed by Mohan Ramani, the following main differences were recounted which seem to be consistent whenever a non-Indian company tries to sell into India:


Directness is not always the best approach from an Indian recipient s perspective, it is often perceived as rude and overly pushy. This is mainly the case when Western, particularly Dutch, managers try to manage and motivate their Indian team members by being very direct in their criticism and often harsh (from the listener s perspective) in their choice of language. Their approach has the opposite effect and end up upsetting or offending the individual, resulting in a de-motivated performer. The Indian manager, being part of that culture, uses paternalistic coercion . He appeals to emotions like guilt and sympathy, and reinforces them with the prospect of rewards or punishments. Essentially, he plays a sort of father figure which evokes deeply seated behavior patterns within the employee built around traditional values such as obeying your parents, etc.
Flexibility is key when you approach the engagement / transaction with a rather rigid model, the client reads into it that you are probably not very service oriented in how you handle your customers, and backs away. Ex. Artillium s insistence on its business model being the only acceptable way forward. This is also in stark contrast to how Indian companies, and the Indian operating companies of global brands such as Siemens, respond to those customers. These firms are far more accommodating, and more willing to fit into how the customer wants to buy.
Reading a polite yes as an actual commitment yes or reading a lofty title on a business card and expecting that the relevant authority goes with it, whilst that is often not the case. Your host for the meeting may try to be gracious, and not come right out and say no . What he is definitely not saying is Yes we will buy this and I can make it happen.
To keep this blog within a normal length, I will cover Russia at another point this week - in the meantime, do look at the video to get the full discussion and knowledge.

This past Saturday there was an article in the leading Dutch papers by Evert Nieuwenhuis: "Growing countries seize power" - which is definitely worth reading when you think about India for instance. Countries such as India, China and Brasil are hardly hit by the financial crisis. There is no recession like in the Western countries, but simply a slightly slower growth mainly due to the fact that there is little Western money available for investments and the fact that was has been invested can often not be withdrawn because of strict regulations. India has learnt the lesson watching what happened in Eastern Europe where money flowed in and out again as quickly when it was needed during a prior recession.

Books worth reading in light of these issues:

Parag Khanna, the Second World
Antoine van Agtmael, The Emerging Market Century
Amy Chua, Day of Empire