Evaluating and Removing Barriers of Cross Cultural

Communication for German managers when opening

branches and subsidiaries in Viet Nam - A Breakthrough in
Vietnam Germany Relations
I.

Why it is important?
Because of the globalization and the rapid development of economics,

multinational firms are more and more prevalent. Intercultural communication presents a
new challenge to managers. Culture, as Hofstede states, is the software of mind that
can influence peoples patterns of thinking and behaving. Mental programming
influences peoples living and working all over their lives. For example, Germany and
Vietnam are immersed in different cultures which lead to different ways of thinking and
behaving. When a Germany company tries to understand the management style or
behaviors of Vietnamese staff, some basic principles are challenged. For instance,
Vietnamese feel that all men are born unequal and they should all obey the decision of
the authority. While Western people believe that all men are born equal and they can
make independent decisions and act on their own. Ambos and Schlegelmilch (2008)
argue that one culture may support certain type (or types) of organizations rather than
other types, and culture differences will eventually influence on the performance of
company. In other words, national culture can influence the management and
communications of organizations. For instances, the management style in the west is
different from that in the east: Dutch management style is approachable and
assertive, while, Japanese managers are high hierarchical and dictatorial. Poon,
Evangelista and Albaum (2005) compare the management differences in China and
Australia, and find that culture is a significant influence in management style in multiculture perspective. Companies who extend their business abroad have to face a
challenge of cross-cultural communication. Bennis and Nanus (1985) refer to Erez
(1992) and claim that communication is the only approach by which group members can
cooperate with each other toward the goal of organization. Especially for multi-culture
firms with some subsidiaries in other countries, it is necessary that managers have
frequent communication and sufficient understanding for organizational goal. Technical

developments have removed most of the physical barriers on communication. However,

managers still encounter some cultural barriers. In order to achieve success, managers
working in global environments must be proficient in cross-cultural communication.
Different characteristics of culture result in thinking, understanding and communicational
diversity. These diversities obstruct organizational development and management more
or less. Adler and Graham (1989) refer to Mishler (1965, p.517) and argue that The
greater the cultural differences, the more likely barriers to communication and
misunderstandings become. More and more managers have paid attention to the
problem of cross-cultural conflict on communication.
Thus, the purpose of the present study is to look into the barriers on firm level in
cross cultural communications in multinational firms. The research question of this study
is as follows: What are the barriers of cross cultural communication for German
managers when opening branches and subsidiaries in Vietnam?
It can be clearly seen that Germany succeeds in opening branches in Europe or
America... However, to expand the market internationally, Germany is planning to open
new subsidiaries, especially in Vietnam and ASEAN countries. In addition, expanding
the market in Vietnam can bring more profits or revenues for German investors and
offer more opportunity to compete with the competitors from UK and Japan. By doing
this, it will contribute to the economic growth and public relation of Germany and
Vietnam in the long run.
To develop the market network, German managers want to know more about
consumer behavior in Vietnam. Thus, to open new branches and subsidiaries in
Vietnam, they need to overcome the culture barriers and learn the differences in
Vietnamese and German culture for communicating and socializing with Vietnamese
staffs.
Vietnam - Germany Economic Relations has continuously developed over
the years, however, it is absolutely not commensurate with the potential of both
countries.

II.

Research Objective
This research aims to:

- Provide solutions for German managers to access and work with Vietnamese
staff; and give some advice or tips for Vietnamese applicants to work for German
company

III.

Management problem and Research Problem

Management Problem: Whether the German companies can invest in Vietnam in

the coming years

Research Problem: Assessing and considering the Barriers of Cross Cultural
Communication between Germany and Viet Nam

IV. Research Questions:

The research question of this study is as follows: What are the barriers of cross
cultural communication for German managers when opening branches and subsidiaries
in Vietnam?

V. Literature Review
CULTURE
The term culture is used in a wide range of social sciences (e.g. anthropology,
sociology, psychology), and it has therefore different meanings in different fields.
Nonetheless, each one of us has his own perception of culture. To some it may be a
crucial determinant of their habits and way of living, while others may not consider it
extremely important. However, we all would probably agree that whether we want it or
not culture shapes our character, behavior and perception of the world around us and
is therefore a key element in cross-cultural communication. Thus, it is important to
understand this term in order to conclude how it influences cross-cultural
communication.
The word culture apparently originates with the Latin culture, which is related to
cultus, which can be translated as cult or worship. This meaning is helpful in

understanding the use of the term. Members of a cult believe in specific ways of doing
things, and thus develop a culture that enshrines those beliefs (Fan, 2000).

Defining culture
Numerous researchers have defined culture in various ways depending on
their perception and preferences. According to Sevic (2003) western societies
perceive culture as a social category consisting of beliefs, values, ways of thinking,
and language, while most Eastern societies discern culture in a much more complex
way as consisting of history, tradition, and most importantly, as a way of life. Following
some definitions are presented:
Tylor (1881): That complex whole which includes knowledge, belief, art,
morals, law, custom, and any other capabilities and habits acquired by man as a
member of society (Fan, 2000).
Kluckhohn & Kelly (1945): all the historically created design for living,
explicit and implicit, rational, irrational, and nonrational, which exist at any given time
as potential guides for the behaviour of men (Fan, 2000).
Hofstede & Hofstede (2004, p. 4): Culture consists of the unwritten rules of
the social game. It is the collective programming of the mind that distinguishes the
members of one group or category of people from others.
Herbig & Dunphy (1998): Culture is the sum total of a way of life, including
such things as expected behaviour, beliefs, values, language, and living practices
shared by members of a society; it is the pattern of values, traits, or behaviours
shared by the people within a region.

Despite the differences between definitions of different authors, all of them have
some points in common. Those commonalities are as follows:

Culture is learnt and transmitted from one generation to another. (Individual

acquires it from other members of his culture).

-

Culture imposes certain values and rules for everyday life to the members who

belong to that culture.

-

Culture is shared by the members of the same society.

Culture encompasses a wide range of life aspects, such as language, values,

beliefs, behaviors, morals which are common to the members of that culture.
Most authors agree that culture is a very complex term, difficult to define.
However, it is clear that culture is a behavioral norm that people sustain as common.
Culture consists of both explicit and implicit rules through which experience is
interpreted. The function of culture is to establish modes of conduct, standards of
performance, and ways of dealing with interpersonal and environmental relations
among the members of any society (Herbig & Dunphy, 1998). Culture being a set of
rules commonly shared by society assumes that the vast majorities of society
subscribe to those values and follow them in everyday life (Sevic, 2003). Shared
cultural norms give the people of any society a sense of their common identity and a
means of relating to one another (Herbig & Dunphy, 1998). Those cultural norms,
customs, practices, and traditions are passed down from one generation to another.
Culture forces people to view and to value differently the many social
interactions inherent in fashioning an agreement. One example of differences in
culture lies in the importance attached to the group versus the individual. In Japan,
the needs of the individual tend to be subordinated to the good of the group. On the
other hand, in the United States, any intrusion by the group on the rights of the
individual is regarded as unjustifiable. This is an example of vastly different
philosophies but equally reasonable, based upon their own respective geographical
parameters and historical background (Herbig & Dunphy, 1998).

Certain authors illustrate the important components of culture through the so

called layers of an onion, modelling a culture as a composite consisting of four
layers. The outer layer of the culture is explicit and deals with artefacts and products.
Cultural artefacts can be viewed as the most physical creations of culture; examples
include the behavior and the language of members of that culture. The second layer
encompasses symbols, rituals, and practices. Underlying this are the norms and
values of that culture. Norms prescribe the correct behaviour, while values refer to
what is considered good and what bad in that culture (Harris, 1998). Beneath it all
are the basic assumptions which are likely to remain implicit. Basic assumptions are
based on stereotypes, myths, judgements and are the most cerebral level of culture.
Those basic assumptions taken-for-granted determine the more explicit system of
meanings. Cultures do not really change at this base level unless people become
explicitly aware of the need for change in order to survive (Skinner, 2000).
.

Culture as a system
Culture may be perceived as a system composed of several ingredients.
Therefore to comprehend it clearly it is indispensable to take a notice of the crucial
ingredients of culture.

Cultures Ingredients
Some most important ingredients of culture are described as follows:
- Social organisations and Institutions By setting specific social norms
social organisations and institutions influence the way people interact with each other
in order to achieve common goals or pursue common interests.
- Norms and values - Values are the beliefs that people have about what is
right and what is wrong, what is the most important in life and what not. These beliefs
guide behaviors and actions. Ones present attitudes and behaviors are always rooted
in the values and choices of the past (Hines,2008). Hofstede described values as

consisting of non-specific feelings of good and evil, beauty and ugliness, normality
and abnormality, rationality and irrationality. Values themselves cannot be observed
directly, but can be inferred from their manifestations in alternatives of behavior
(Wallace et al., 1999).
- Religions - As religion is a subset of culture, virtually all religious systems
serve to influence culture by providing the latent function of strengthening social
bonds. High levels of religiosity can be indicative of a stronger sense of community,
belonging and moral standards. For example, a survey of US attitudes conducted
found that Americans equate religious beliefs with personal ethics and behaviour
(Cornwell et al., 2005).
- Language To illustrate the role that language plays in culture it is
interesting to note that for some linguists the debate is focused on whether culture
influences language or whether language influences culture. Traditional wisdom
suggests that the cultural identity of a group will influence the language of that group.
However, some psychologists such as Miller disagree, suggesting instead, that
language is the dominant variable, and that culture is formed through language (Swift,
2002).
- Educational system Different educational systems and specializations in
different countries have a fundamental role in sustaining and transferring the culture.
- Arts and Aesthetics - Aesthetics is the study of forms and appearances,
and is often associated solely with beauty, although ugliness is part of aesthetics too.
Therefore aesthetics of a particular group can reveal how identity is sustained by the
symbolic revalorization, within the group, of phenomena, tasks, objects, activities etc.
that are devalued by other groups or wider society. Additionally, art and music enable
us to experience insight or revelation resulting in the clearer understanding of culture
(Linstead, 2006).
- Material culture and living standard reflects the societys level of
economic development and wealth.

A/ Vietnam
Located in Southeastern Asia, the Socialist Republic of Vietnam has a population
of about 90.5 million people and Hanoi is the capital. There are 58 provinces and 5
municipalities (major cities) including Ho Chi Minh City and Can Tho in the South,
Hanoi, Hai Phong in the North, and Da Nang in the Central (Central Intelligence Agency,
2011a).
Facts and Statistics
Location: Southeastern Asia, bordering the Gulf of Thailand, Gulf of Tonkin, and East
Sea, bordering China, Laos, and Cambodia
Capital: Hanoi
Climate: tropical in south; monsoonal in north with hot, rainy season (mid-May to midSeptember) and warm, dry season (mid-October to mid-March)
Population: 87.84 million (2011)
GDP: $123.6 billion USD (World Bank) Lower Middle Income group
Ethnic Make-up: 54 ethnic groups. The Kinh 85%-90%, Chinese, Hmong, Thai, Khmer,
Cham, various mountain groups
Religions: Buddhist, Christian (predominantly Roman Catholic, some Protestant) Hoa
Hao, Cao Dai , indigenous beliefs and Muslim
Language
Vietnamese is the official language. Vietnamese is a tonal language. With
each syllable, there are six different tones that can be used to make new words with
different meanings which often make it difficult for foreigners to pick up the language.
There are other languages spoken as well such as Chinese, Khmer, Cham and
other languages spoken by tribes inhabiting the mountainous regions. Although there
are some similarities to Southeast Asian languages, Vietnamese is a separate language
group,

although

member

of

the

Austro-Asiatic

language

family.

In written form, Vietnamese uses the Roman alphabet and accent marks to
show tones. This system of writing called Quoc ngu (national script), was created by
Catholic missionaries in the 17th century to translate the scriptures. Eventually this

system, particularly after World War I, replaced one using Chinese characters (chu
nom), which had been the unofficial written form used for centuries.
Vietnamese Culture & Society
Indigenous culture has evolved for nearly 4000 years. Its artifacts are found in
the household, farming and musical instruments and in thousands of folklores, legends,
folksongs passed down from generations by ways of oral transmission. The traditional
values and customs are formed around rice cultivation and village community.
Vietnamese indigenous culture has also come into contact with other cultures
through trade, immigration and mostly though invasions, domination (a thousand year
under the Chinese Han domination), successive wars, nearly 100 years of French
colonization, then Japanese occupation during WW2 and American War or Vietnams
War as called by the American. Chinese and French influences can be found in
language communication, art and literature, education, architecture and cooking.
The traditional culture is also influenced by 3 external religions: Confucianism,
Taoism and Buddhism. Confucianism stresses duty, loyalty, honor, filial piety, respect for
age and seniority, and sincerity. These values also have great influences on Vietnamese
customs and behavior.
Since Renovation or Doi moi policy in the late1980s, Vietnam has opened up to
the world. The Vietnamese culture has also undergone fundamental changes towards
deeper integration with the rest of the world with the strong emergence of the private
economic sector and the middle class. Life styles and habits especially of the young
have also rapidly changed with the popular use of the internet and exposure to global
cultures.
Etiquette and Customs in Vietnam
Vietnamese society has a fair amount of public etiquette. The following are some
of the more common points:

In dealing with your seniors (age /status) or in formal settings:

o

Do not touch someone's head.

Pass items with both hands to show respect.

Do not point with your finger at a senior - use your hand.

Do not cross your legs when sitting or fold your arms on your chest.

Wear formally.
Avoid public displays of affection with a member of the opposite sex.

Dining Etiquette and Table Manners

If invited to a Vietnamese home:

Bring fruit, sweets, flowers depending on occasions

Wait to be shown where to sit.

The oldest person should sit and serve first.

Meals are typically served family-style. People serve from common dishes. Hosts
often keep offering foods to show hospitality.
Cover your mouth when using a toothpick.

Business Etiquette and Protocol

Appointments are required and should be made several weeks or days in

advance.
The best means of doing so is through a local representative who can act as a

reference and also translator/interpreter.

Dress conservatively at formal meetings. For business acquaintances, casual

dresses can be accepted.

Handshakes are used upon meeting and departing.

Some Vietnamese use a two-handed shake to show special respect, with the left
hand on top of the right wrist.
Business cards are exchanged on initial meeting. When receiving business cards

ensure you show proper respect to it and do not simply glance at it and put it on the
table.

Hierarchy and face manifest in different ways within business meetings. For
example, the most senior person should always enter the room first and often is the
main speaker at business meetings.

Silence is also common in meetings where someone disagrees with another but
remains quiet so as to not cause a loss of face.

Relationships are critical to successful business partnerships. Always invest time

in building a good relationship based on both personal and business lines. Any initial

meeting should be solely used as a "getting to know you" meeting. Trust is key to
business success.
Negotiations can be slow so it is important to bear in mind that decisions have to

go through a lot of red tape and also group consultation. Be patient.

Business gift giving is fairly common at the end of a meeting or during a meal in

honor of your business associates. Gifts should be small but not expensive. Something
with your company logo or something typical from your country both make excellent
gifts.

B/ Germany:
Located in Central Europe, the Federal Republic of Germany is the Europes
largest economy and plays a key role in the continents economic, political, and defense
systems. Germany has a population of about 81.5 million people and Berlin is the
capital. There are 16 states in the country and federal republic is the government
structure (Central Intelligence Agency, 2011b).The German culture has been strongly
influenced by major intellectual and popular trends in Europe and is one of the most
influential cultural powers in this continent. The German history has influenced culture in
many ways.
Language
German is the official and predominant spoken language in Germany. It is one of
23 official languages in the European Union, and one of the three working languages of
the European Commission, along with English and French. Recognized native minority
languages in Germany are Danish, Sorbian, and Frisian. They are officially protected by
the ECRML. The most used immigrant languages are Turkish, Kurdish, Polish,
the Balkan languages, and Russian.
Standard German is a West Germanic language and is closely related to and
classified alongside English, Dutch, and the Frisian languages. To a lesser extent, it is
also related to the East (extinct) and North Germanic languages. Most German
vocabulary is derived from the Germanic branch of the Indo-European language
family. Significant minorities of words are derived from Latin and Greek, with a smaller
amount from French and most recently English (known as Denglisch). German is written
using the Latin alphabet. In addition to the 26 standard letters, German has three

vowels with Umlaut, namely , , and , as well as the Eszett or scharfes S (sharp s)
which is written "".
Around the world, German has approximately 100 million native speakers and
also about 80 million non-native speakers. German is the main language of about
90 million people (18%) in the EU. 67% of German citizens claim to be able to
communicate in at least one foreign language, 27% in at least two languages other than
their first.
Religions
64.1% of the German population belongs to Christian denominations: 30%
are Roman Catholic, and 29% are affiliated with Protestantism (the figures are known
accurately because Germany imposes a church tax on those who disclose a religious
affiliation).
German Society
Germany is a modern, advanced society, shaped by a plurality of lifestyles and
regional identities. The country has established a high level of gender equality,
promotes disability rights, and is legally and socially tolerant towards homosexuals.
Gays and lesbians can legally adopt their partner's biological children, and civil
unions have

been

permitted

since

2001. The

former

Foreign

minister Guido

Westerwelle and the mayor of Berlin, Klaus Wowereit, are openly gay.
During the last decade of the 20th century, Germany changed its attitude towards
immigrants. Until the mid-1990s the opinion was widespread that Germany is not a
country of immigration, even though about 20% of the population were of non-German
origin. Today the government and a majority of the German society are acknowledging
that immigrants from diverse ethnocultural backgrounds are part of German society and
that controlled immigration should be initiated based on qualification standards.
Since the 2006 FIFA World Cup, the internal and external evaluation of
Germany's national image has changed. In the annual Nation Brands Index global
survey, Germany became significantly and repeatedly more highly ranked after the
tournament. People in 20 different states assessed the country's reputation in terms of
culture, politics, exports, its people and its attractiveness to tourists, immigrants and
investments. Germany has been named the world's second most valued nation among

50 countries in 2010. Another global opinion poll, for the BBC, revealed that Germany is
recognized for the most positive influence in the world in 2010. A majority of 59% have a
positive view of the country, while 14% have a negative view.
With an expenditure of 67 billion on international travel in 2008, Germans spent
more money on travel than any other country. The most visited destinations were Spain,
Italy and Austria,
Business Etiquette and Protocol

Be on time in Germany. Being late in Germany is a cardinal sin. Seriously.

Turning up even five or ten minutes after the arranged time - especially for a first
meeting - is considered personally insulting and can create a disastrous first impression.
Minimize reputation damage by calling ahead with a watertight excuse if you're going to
be held up.

Use titles and surnames. German workers tend to stick to roles rigidly and rarely
step out of strict office hierarchies. Stay in line and always address colleagues and
business associates using their title and surname, unless or until they invite you use first
names. If you find yourself hosting, introduce your highest ranking guest to everyone
else taking care to use full names and job positions.

If in doubt, shake hands. As well as shaking hands in greeting, Germans also

shake hands with everyone in a room before and after a business meeting or
conference. If you have to leave early, shake everyone's hand again, starting with the
most senior person present and working down. The German handshake is firm and
brief, said to convey confidence and reliability. A weak handshake will suggest you are
unsure of your abilities.

Dress like an MP. German business attire is reserved and conservative, with both
men and women typically donning dark suits and few, if any accessories. Men are
advised to avoid flashy ties and women should keep make-up and jewellery simple and
low-key.

Business, not personal. Don't expect your German colleagues to be natural

sharers, and don't take it personally if they seem distant, even after some time. Keep
small talk light and non-specific, as most prefer to keep the details of their home life or

political and religious views out of the office. NB: Never discuss your or anybody else's
income - a taboo in Germany.

Knock first. Earn German colleagues' respect by respecting their privacy. If you
find yourself faced with a closed door, especially to a private office, always knock before
entering. Equally, never call a German colleague at home unless it's really an
emergency - of catastrophic proportions.

Keep your distance. Germans don't tend to be the touchy-feely types. Observe
the personal space of others and avoid patting shoulders, arms or generally any
physical contact beyond that all-important handshake.

Say what you mean. In negotiations, Germans tend to be direct and frank about
what they want and they will expect you to do the same. If you are pitching a project,
remember making a decision can be a long process, so don't bother with the hard sell,
just present all the facts as thoroughly as you can. Likewise, if Germans are presenting
you with a proposal, stock up on coffee and be prepared to be shown a barrage of
figures, graphs, tables and pie charts.

Plan ahead. Germans tend to keep full, relatively inflexible calendars, so be sure
to schedule meetings well in advance. Surprises are generally frowned upon, so don't
expect to be able to change or cancel an appointment at short notice without annoying
your German associates. Last minute cancellations are an even worse sin than being
late.

Guten Appetit. If attending a business lunch or other meal, wait for the host to
initiate most things - drinking wine, eating and conversation. Make sure to wish
everyone Guten Appetit before digging in. When toasting chime in with Prost! or Zum
Wohl!, and look other guests in the eyes when clinking glasses. Hopefully, the meal will
follow the German toast Erst mach' dein' Sach dann trink' und lach! (First take care of
business, then drink and laugh!)

C/ Dimensions of Culture:
Trompenaars Model

Many of us work routinely with people from other cultures and backgrounds.
Often this goes well, and the cultural differences are interesting and enriching. However,
sometimes things go wrong, for reasons that we may not understand.
This is where it's important to understand the differences between cultures, so
that we can work with people more effectively, and prevent misunderstandings.
Trompenaars and Hampden-Turner's Seven Dimensions of Culture help us do this.
We'll look at the seven dimensions in this article, and we'll explore how you can apply
the model in our own situation.
About the Model
The Seven Dimensions of Culture were identified by management consultants
Fons Trompenaars and Charles Hampden-Turner, and the model was published in their
1997 book, "Riding the Waves of Culture."
Trompenaars and Hampden-Turner developed the model after spending 10
years researching the preferences and values of people in dozens of cultures around
the world. As part of this, they sent questionnaires to more than 46,000 managers in 40
countries.
They found that people from different cultures aren't just randomly different from
one another; they differ in very specific, even predictable, ways. This is because each
culture has its own way of thinking, its own values and beliefs, and different preferences
placed on a variety of different factors.
Trompenaars and Hampden-Turner concluded that what distinguishes people
from one culture compared with another is where these preferences fall in one of the
following seven dimensions:
1.

Universalism versus particularism.

2.

Individualism versus communitarianism.

3.

Specific versus diffuse.

4.

Neutral versus emotional.

5.

Achievement versus ascription.

6.

Sequential time versus synchronous time.

7.

Internal direction versus outer direction.

We'll look at each dimension in detail below.

You can use the model to understand people from different cultural backgrounds
better, so that you can prevent misunderstandings and enjoy a better working
relationship with them. This is especially useful if you do business with people from
around the world, or if you manage a diverse group of people.
The model also highlights that one culture is not necessarily better or worse than
another; people from different cultural backgrounds simply make different choices.
However, the model doesn't tell you how to measure people's preferences on
each dimension. Therefore, it's best to use it as a general guide when dealing with
people from different cultures.
Applying the Model
Let's look at each of the dimensions in detail, and explore some of the strategies
that you can use with people who fit the characteristics highlighted in each dimension.
Note 1:
For each dimension, we've included some of the national cultures that
Trompenaars and Hampden-Turner identified as having a preference at each extreme
of that particular dimension. You can use this as a general guide, but remember to treat
people as individuals, and to avoid stereotyping.
Note 2:
The cultural dimensions don't take into account people's personal experiences or
differences between sub-cultures within the country, so bear this in mind when you're
applying the model. This is especially relevant in today's global environment, where
people can be influenced by many different cultures.
Note 3:
Be sensible in how you apply these strategies. In practice, there will be many
other factors that will have a bearing on how you manage people and communicate with
them.

1. Universalism Versus Particularism (Rules Versus Relationships)

Dimension

Characteristics

Strategies

Universalis
m
(Germany)

Particularis
m
(Vietnam)

People place a high

importance on laws, rules,
values, and obligations.
They try to deal fairly with
people based on these
rules, but rules come
before relationships.

People believe that each

circumstance, and each
relationship, dictates the
rules that they live by.
Their response to a
situation may change,
based on what's
happening in the moment,
and who's involved.

Help people understand how

their work ties into their values
and beliefs.

Provide clear instructions,

processes, and procedures.

Keep promises and be

consistent.

Give people time to make

decisions.

Use an objective process to

make decisions yourself, and
explain your decisions if others
are involved.

Give people autonomy to

make their own decisions.

Respect others' needs when

you make decisions.

Be flexible in how you make

decisions.

Take time to build

relationships and get to know
people so that you can better
understand their needs.

Highlight important rules and

policies that need to be followed.

Typical universalist cultures include the U.S., Canada, the U.K, the Netherlands,
Germany, Scandinavia, New Zealand, Australia, and Switzerland.
Typical particularistic cultures include Russia, Latin-America, China and Vietnam
2. Individualism Versus Communitarianism (The Individual Versus The Group)
Dimension

Characteristics

Strategies

Individualism
(Germany)

Communitarianis
m
(Vietnam)

People believe in
personal freedom and
achievement. They
believe that you make
your own decisions, and
that you must take care
of yourself.

People believe that the

group is more important
than the individual. The
group provides help and
safety, in exchange for
loyalty. The group
always comes before the
individual.

Praise and reward

individual performance.

Give people autonomy to

make their own decisions
and to use their initiative.

Link people's needs with

those of the group or
organization.

Allow people to
be creative and to learn from
their mistakes.

Praise and reward group

performance.

Don't praise individuals

publically.

Allow people to involve

others in decision making.

Avoid showing favoritism.

Typical individualist cultures include the U.S., Germany, Canada, the U.K, Scandinavia,
New Zealand, Australia, and Switzerland.
Typical communitarian cultures include countries in Latin-America, Africa, Japan and
Vietnam.
3. Specific Versus Diffuse (How Far People Get Involved)
Dimensio
n
Specific
(Germany)

Characteristics

People keep work and

personal lives separate. As
a result, they believe that
relationships don't have
much of an impact on work

Strategies

Be direct and to the point.

Focus on people's objectives

before you focus on strengthening
relationships.

objectives, and, although

good relationships are
important, they believe that
people can work together
without having a good
relationship.

Diffuse
(Vietnam)

People see an overlap

between their work and
personal life. They believe
that good relationships are
vital to meeting business
objectives, and that their
relationships with others
will be the same, whether
they are at work or
meeting socially. People
spend time outside work
hours with colleagues and
clients.

Provide clear instructions,

processes, and procedures.

Allow people to keep their

work and home lives separate.

Focus on building a good

relationship before you focus on
business objectives.
Find out as much as you can
about the people that you work
with and the organizations that
you do business with.

Be prepared to discuss
business on social occasions, and
to have personal discussions at
work.

Try to avoid turning down

invitations to social functions.

Typical specific cultures include the U.S., the U.K., Switzerland, Germany, Scandinavia,
and the Netherlands.
Typical diffuse cultures include Argentina, Spain, Russia, India, Vietnam.
4. Neutral Versus Emotional (How People Express Emotions)
Dimensio
n
Neutral
(Germany)

Characteristics

Strategies

People make a great effort to

control their emotions.
Reason influences their
actions far more than their
feelings. People don't reveal
what they're thinking or how
they're feeling.

Manage your
emotions effectively.
Watch that your body
language doesn't convey
negative emotions.
"Stick to the point" in

meetings and interactions.

Emotional
(Vietnam)

People want to find ways to

express their emotions, even
spontaneously, at work. In
these cultures, it's welcome
and accepted to show
emotion.

Watch people's reactions

carefully, as they may be
reluctant to show their true
emotions.

Open up to people to
build trust and rapport .
Use emotion to
communicate your objectives.

Learn to manage
conflict effectively, before it
becomes personal.
Use positive body
language.
Have a positive attitude.

Typical neutral cultures include the U.K., Sweden, the Netherlands, Finland, and
Germany.
Typical emotional cultures include Italy, France, Spain, and Vietnam.
5. Achievement Versus Ascription (How People View Status)
Dimension

Characteristics

Achievement
(Germany)

People believe that

you are what you
do, and they base
your worth
accordingly. These
cultures value
performance, no
matter who you are.

Ascription
(Vietnam)

People believe that

you should be
valued for who you
are. Power, title,
and position matter

Strategies

Reward and recognize good performance

appropriately.
Use titles only when relevant.

Be a good role
model.

Use titles, especially when these clarify

people's status in an organization.

Show respect to people in authority,

especially when challenging decisions.

in these cultures,
and these roles
define behavior.

Don't "show up" people in authority.

Don't let your authority prevent you from

performing well in your role.

Typical achievement cultures include the U.S., Canada, Australia, and Scandinavia.
Typical ascription cultures include France, Italy, Vietnam, and Saudi Arabia.
6. Sequential Time Versus Synchronous Time (How People Manage Time)
Dimension

Sequential
Time
(Germany)

Synchronou
s Time
(Vietnam)

Characteristics
People like events to happen
in order. They place a high
value on punctuality, planning
(and sticking to your plans),
and staying on schedule. In
this culture, "time is money,"
and people don't appreciate it
when their schedule is thrown
off.

People see the past, present,

and future as interwoven
periods. They often work on
several projects at once, and
view plans and commitments
as flexible.

Strategies

Focus on one activity or

project at a time.

Be punctual.

Keep to deadlines.

Set clear deadlines.

Be flexible in how you

approach work.

Allow people to be
flexible on tasks and
projects, where possible.

Highlight the importance

of punctuality and deadlines
if these are key to meeting
objectives.

Typical sequential-time cultures include Germany, the U.K., and the U.S.
Typical synchronous-time cultures include Vietnam, Argentina, and Mexico.
7. Internal Direction Versus Outer Direction
(How People Relate to Their Environment)

Dimensio
n

Internal
Direction
(Germany)

Characteristics

People believe that they

can control nature or their
environment to achieve
goals. This includes how
they work with teams and
within organizations.

Strategies

Allow people to develop their

skills and take control of their
learning.

Set clear objectives that

people agree with.

Be open about conflict and

disagreement, and allow people
to engage in constructive
conflict.

Provide people with the right

resources to do their jobs
effectively.
Give people direction and
regular
feedback, so that they know
how their actions are affecting
their environment.
Reassure people that they're
doing a good job.

Outer
Direction
(Vietnam)

People believe that nature,

or their environment,
controls them; they must
work with their environment
to achieve goals. At work or
in relationships, they focus
their actions on others, and
they avoid conflict where
possible. People often need
reassurance that they're
doing a good job.

Manage conflict quickly and

quietly.
Do whatever you can
to boost people's confidence.
Balance negative
and positive feedback.
Encourage people to take
responsibility for their work.

Typical internal-direction cultures include Germany, the U.S., Australia, New Zealand,
and the U.K.
Typical outer-direction cultures include Vietnam, Russia, and Saudi Arabia.
Tip 1:
Hofstede's Cultural Dimensions is another model that can help you to understand
different cultures. The advantage of Hofstede's model is that his research included only
employees from one organization IBM so his findings are unlikely to be affected by

differences in company culture. The disadvantage is that the culture of this company
may skew more general results.
Tip 2:
To learn more about managing and working with people from specific countries and
cultures, see the Managing Around the World articles in our Team Management section,
and listen to our Expert Interviews with Terri Morrison and Michael Schell.
Key Points
The Seven Dimensions of Culture model was created by Fons Trompenaars and
Charles Hampden-Turner, and was published in their book, "Riding the Waves of
Culture."
The model says that what distinguishes people from one culture compared with another
is where their preferences fall on each of the following seven dimensions:
1. Universalism versus particularism.
2. Individualism versus communitarianism.
3. Specific versus diffuse.
4. Neutral versus emotional.
5. Achievement versus ascription.
6. Sequential time versus synchronous time.
7. Internal direction versus outer direction.
You can use the model to understand people from different cultural backgrounds better,
so that you can work with them more effectively, and prevent misunderstandings.
Be sensible in how you apply the model. Treat people as individuals, and remember that
there are many factors that will have a bearing on how you communicate and interact
with other people.

Hofstede Model
Power Distance
This dimension deals with the fact that all individuals in societies are not equal it
expresses the attitude of the culture towards these inequalities amongst us. Power
Distance is defined as the extent to which the less powerful members of
institutions and organizations within a country expect and accept that power
is distributed unequally.

Individualism
The fundamental issue addressed by this dimension is the degree of
interdependence a society maintains among its members. It has to do with
whether peoples self-image is defined in terms of I or We. In Individualist
societies people are supposed to look after themselves and their direct family only.
In Collectivist societies people belong to in groups that take care of them in
exchange for loyalty.
Masculinity
A high score (Masculine) on this dimension indicates that the society will be driven
by competition, achievement and success, with success being defined by the
winner/best in field a value system that starts in school and continues throughout
organizational life.
A low score (Feminine) on the dimension means that the dominant values in
society are caring for others and quality of life. A Feminine society is one where
quality of life is the sign of success and standing out from the crowd is not
admirable. The fundamental issue here is what motivates people, wanting to be
the best (Masculine) or liking what you do (Feminine).
Uncertainty Avoidance
The dimension Uncertainty Avoidance has to do with the way that a society deals
with the fact that the future can never be known: should we try to control the future
or just let it happen? This ambiguity brings with it anxiety and different cultures have
learnt to deal with this anxiety in different ways. The extent to which the members
of a culture feel threatened by ambiguous or unknown situations and have
created beliefs and institutions that try to avoid these is reflected in the score on
Uncertainty Avoidance.
Long Term Orientation
This dimension describes how every society has to maintain some links
with its own past while dealing with the challenges of the present and future,
and societies prioritise these two existential goals differently. Normative societies.
which score low on this dimension, for example, prefer to maintain time-honoured
traditions and norms while viewing societal change with suspicion. Those with a

culture which scores high, on the other hand, take a more pragmatic approach: they
encourage thrift and efforts in modern education as a way to prepare for the future.
Indulgence
One challenge that confronts humanity, now and in the past, is the degree to
which small children are socialized. Without socialization we do not become
human. This dimension is defined as the extent to which people try to control
their desires and impulses, based on the way they were raised. Relatively weak
control is called Indulgence and relatively strong control is called Restraint.
Cultures can, therefore, be described as Indulgent or Restrained.

Dimensio

Vietnam

Germany

n
Power
Distance

Individualism

Vietnam scores high on this

dimension (score of 70)
People accept a
hierarchical order in which
everybody has a place and
which needs no further
justification. Hierarchy in an
organization is seen as
reflecting inherent
inequalities, centralization is
popular, subordinates expect
to be told what to do and the
ideal boss is a benevolent
autocrat.
Challenges to the leadership
are not well-received.

Vietnam, with a score of 20 is

a collectivistic society. This is
manifest in a close longterm commitment to the
member group, be that a
family, extended family or
extended relationships.
Loyalty in a collectivist
culture is paramount and
overrides most other societal
rules and regulations. Such a
society fosters strong
relationships, where
everyone takes responsibility
for fellow members of their
group. In collectivistic
societies, offence leads to
shame and loss of face.
Employer/employee
relationships are perceived in
moral terms (like a family
link), hiring and promotion

Highly decentralized and

supported by a strong middle
class, Germany is not
surprisingly among the lower
power distant countries (score
35).
Co-determination rights are
comparatively extensive and
have to be taken into account
by the management. A direct
and participative
communication and meeting
style is common, control is
disliked and leadership is
challenged to show expertise
and best accepted when its
based on it.

The German society is a truly

Individualist one (67). Small
families with a focus on the
parent-children relationship
rather than aunts and uncles
are most common. There is a
strong belief in the ideal of selfactualization.
Loyalty is based on personal
preferences for people as well
as a sense of duty and
responsibility. This is defined by
the contract between the
employer and the
employee. Communication is
among the most direct in the
world following the ideal to be
honest, even if it hurts and
by this giving the counterpart a
fair chance to learn from
mistakes.

take account of the

employees in-group.
Management is the
management of groups.

Masculinity

Uncertainty
Avoidance

Vietnam scores 40 on this

dimension and is thus
considered a Feminine
society.
In Feminine countries the
focus is on working in order
to live, managers strive for
consensus, people value
equality, solidarity and quality
in their working lives.
Conflicts are resolved by
compromise and negotiation.
Incentives such as free time
and flexibility are favored.
Focus is on well-being, status
is not shown. An effective
manager is a supportive one,
and decision making is
achieved through
involvement.

Vietnam scores 30 on this

dimension and thus has a low
preference for avoiding
uncertainty. Low UAI societies
maintain a more relaxed attitude
in which practice counts more
than principles and deviance
from the norm is more easily
tolerated. In societies exhibiting
low UAI, people believe there
should be no more rules than
are necessary and if they are
ambiguous or do not work they
should be abandoned or
changed. Schedules are flexible,
hard work is undertaken when

With a score of 66 Germany is

considered a Masculine society.
Performance is highly valued and
early required as the school
system separates children into
different types of schools at the
age of ten. People rather live in
order to work and draw a lot of
self-esteem from their tasks.
Managers are expected to be
decisive and assertive. Status
is often shown, especially by
cars, watches and technical
devices.

Germany is among the uncertainty

avoidant countries (65); the score
is on the high end, so there is a
slight preference for Uncertainty
Avoidance. In line with the
philosophical heritage of Kant,
Hegel and Fichte there is a strong
preference for deductive rather
than inductive approaches, be it in
thinking, presenting or planning:
the systematic overview has to be
given in order to proceed. This is
also reflected by the law
system. Details are equally
important to create certainty that a
certain topic or project is well-

necessary but not for its own

sake, precision and punctuality
do not come naturally, innovation
is not seen as threatening.

thought-out. In combination with

their low Power Distance, where
the certainty for own decisions is
not covered by the larger
responsibility of the boss, Germans
prefer to compensate for their
higher uncertainty by strongly
relying on expertise.

Long Term
Orientation

Vietnam scores 57, making it a

pragmatic culture. In societies
with a pragmatic orientation,
people believe that truth
depends very much on situation,
context and time. They show an
ability to adapt traditions easily
to changed conditions, a strong
propensity to save and invest.
thriftiness and perseverance in
achieving results.

Germany's high score of 83

indicates that it is a pragmatic
country. In societies with a
pragmatic orientation, people
believe that truth depends very
much on situation, context and
time. They show an ability to adapt
traditions easily to changed
conditions, a strong propensity to
save and invest, thriftiness, and
perseverance in achieving results.

Indulgence

A low score of 35 on this

dimension indicates that the
culture of Vietnam is
characterized as Restrained.
Societies with a low score in this
dimension have a tendency to
cynicism and pessimism. Also, in
contrast to Indulgent societies,
Restrained societies do not put
much emphasis on leisure time
and control the gratification of
their desires. People with this
orientation have the perception
that their actions are Restrained
by social norms and feel that
indulging themselves is
somewhat wrong.

The low score of 40 on this

dimension indicates that the
German culture is Restrained
in nature. Societies with a low
score in this dimension have a
tendency to cynicism and
pessimism. Also, in contrast to
Indulgent societies, Restrained
societies do not put much
emphasis on leisure time and
control the gratification of their
desires. People with this
orientation have the perception
that their actions are Restrained by
social norms and feel that
indulging themselves is somewhat
wrong.

= > Suggestion for German managers:

An in-depth study of the topic is presented in order to awake managers
awareness of cultural importance during the process of international knowledge transfer.

Through analyzing and discussing the reasons of the conflict deriving from cultural
difference, a practical study is provided to managers to help them having a picture
about what barriers culture brings to the cross-cultural management. Make sure that
those barriers are in managers mind when they managing multinational firms.
When entering from a LC culture into a HC culture, firstly, managers should take
their times and learn the differences of the communication and the culture. In a
business context, mutual creation of value is dependent on mutual learning and
mutual adaptation of multinational firms.

Edward T.Hall Model

Edward T. Hall (1990), in Understanding Cultural Differences, Germans, French
and Americans, Yarmouth: Intercultural Press, also characterizes cultures as high and
low context types. Vietnamese culture and communication style can be classified as
belonging to High Context Group
Vietnamese High-Context Communication:

Less is verbally explicit or written or formally expressed

Personal face-to-face communication is more important, often centering

around a central, authoritative figure, hierarchical and less devolution of
power.

Strong distinction between insiders vs. "outsiders" Familiar or Unfamiliar.

High use of nonverbal elements; voice tone, facial expression, gestures, and
eye movement/contact, silence may not be consent. Nodding may not show
agreement but indicating that I am listening.

Verbal message is indirect in argument but very direct in requests depending

on social norms.

Disagreement is not directly expressed. Conflict either must be solved before

work can progress or must be avoided.

Germany Low-Context Communication:

Verbally explicit or written or formally expressed

Personal face-to-face communication is less important, devolution of power is

encouraged.

No distinction between insiders vs. "outsiders" Familiar or Unfamiliar.

High use of verbal elements; everything is expressed openly.

Verbal message is direct. Argument often occur in the workplace.

Disagreement is directly expressed. Conflict may happen during working time.

The concepts of high context and low context refer to how people communicate
in different cultures. Differences can be derived from the extent to which meaning is
transmitted through actual words used or implied by the context.
High context implies that a lot of unspoken information is implicitly transferred
during communication. People in a high context culture such as Saudi Arabia tend to
place a larger importance on long-term relationships and loyalty and have fewer rules
and structure implemented.
Low context implies that a lot of information is exchanged explicitly through the
message itself and rarely is anything implicit or hidden. People in low context cultures
such as the UK tend to have short-term relationships, follow rules and standards closely
and are generally very task-oriented.
Understanding whether your international colleagues are high context or low
context will help you to adapt your communication style and build stronger relationships
with them. These concepts are covered during cross-cultural training programmes such
as Communicating across Cultures and managing international teams.

Cultural

awareness training which focuses on one or more specific cultures like Doing Business
in India or Living and Working in China will also address these concepts.
When doing business in a high context culture like Vietnam, you might encounter
the following:

Misunderstanding when exchanging information

Impression of a lack of information

Large amount of information is provided in a non-verbal manner, e.g. gestures,

pauses, facial expressions

Emphasis on long term relationships and loyalty

Unwritten rules that are taken for granted but can easily be missed by strangers

Shorter contracts since less information is required

When doing business in a low context culture like Germany, you might find the
following:

All meaning is explicitly provided in the message itself

Extensive background information and explanations are provided verbally to

avoid misunderstandings

People tend to have short-term relationships

People follow rules and standards closely

Contracts tend to be longer and very detailed

High and low context cultures usually correspond with polychronic and

monochronic cultures respectively. The table below shows some general preferences of
people from high context and low context cultures.

High Context (Vietnam)

Low Context (Germany)

Indirect and implicit messages

Direct, simple and clear messages

Polycrhonic

Monochronic

High use of non-verbal communication

Low use of non-verbal communication

Low reliance on written communication

High reliance on written communication

Use intuition and feelings to make

decisions

Rely on facts and evidence for decisions

Long-term relationships

Short-term relationships

Relationships are more important than

schedules

Schedules are more important than

relationships

Strong distinction between in-group and

out-group

Flexible and open

HIGH CONTEXT (Vietnam)

Association

Relationships depend on trust,

build up slowly, are stable. One
distinguishes between people inside
and people outside one's circle.
How things get done depends on
relationships with people and
attention to group process.
One's identity is rooted in
groups (family, culture, work).
Social structure and authority are
centralized; responsibility is at
the top. Person at top works for the
good of the group.

LOW CONTEXT (Germany)

Association

Relationships begin and

end quickly. Many people can
be inside one's circle; circle's
boundary is not clear.
Things get done by following
procedures and paying
attention to the goal.
One's identity is rooted in
oneself and one's
accomplishments.
Social structure is
decentralized; responsibility
goes further down (is not
concentrated at the top).

Interaction

High use of nonverbal

elements; voice tone, facial
expression, gestures, and eye
movement carry significant parts of
conversation.
Verbal message is implicit;
context (situation, people, nonverbal
elements) is more important than
words.
Verbal message is indirect; one
talks around the point and
embellishes it.
Communication is seen as an
art forma way of engaging
someone.
Disagreement is personalized. One
is sensitive to conflict expressed
in another's nonverbal
communication. Conflict either must
be solved before work can progress
or must be avoided because it is
personally threatening.

Territoriality

Space is communal; people

stand close to each other, share the
same space.

Temporality

Everything has its own time. Time is

not easily scheduled; needs of
people may interfere with keeping
to a set time. What is important is
that activity gets done.
Change is slow. Things are rooted
in the past, slow to change, and
stable.
Time is a process; it belongs to

Interaction

Low use of nonverbal

elements. Message is carried
more by words than by
nonverbal means.
Verbal message is explicit.
Context is less important than
words.
Verbal message is direct; one
spells things out exactly.
Communication is seen as a
way of exchanging information,
ideas, and opinions.
Disagreement is
depersonalized. One
withdraws from conflict with
another and gets on with the
task. Focus is on rational
solutions, not personal ones.
One can be explicit about
another's bothersome
behavior.

Territoriality

Space is compartmentalized
and privately owned; privacy
is important, so people are
farther apart.

Temporality

Things are scheduled to be

done at particular times, one
thing at a time. What is
important is that activity is
done efficiently.
Change is fast. One can make
change and see immediate
results.
Time is a commodity to be

spent or saved. Ones time is

ones own.

others and to nature.

Learning

VI.

Knowledge is embedded in
the situation; things are
connected, synthesized, and global.
Multiple sources of information are
used. Thinking is deductive,
proceeds from general to
specific.
Learning occurs by first
observing others as they model or
demonstrate and then practicing.
Groups are preferred for learning
and problem solving.
Accuracy is valued. How well
something is learned is important.

Learning

Reality is fragmented and

compartmentalized. One
source of information is used to
develop knowledge. Thinking is
inductive, proceeds from
specific to general. Focus is on
detail.
Learning occurs by following
explicit directions and
explanations of others.
An individual orientation is
preferred for learning and
problem solving.
Speed is valued. How
efficiently something is learned
is important.

The scope of Research

The research population is 20 employees in Vietnam. We will research whether

they understand cross-cultural communication or not, we also ask them about the
cultural differences and their influence on business interactions

VII.

Sampling
The utilized sample is a purposive or judge-mental sample, which means that the

subjects have been selected based on the assumption that they are appropriate
representatives of a wider population. The target population is an employee with a

considerable international experience who communicates daily with the people coming
from different cultures than his own. All of the subjects are employees. Two of the
potential respondents were not able to participate in the research, one of them due to
the lack of time and the other had left on yearly vacation.

VII.

Research Method
The data for the purpose of the research was collected through qualitative

procedures. The reason I opted for the qualitative methods was due to the fact that
greater depth can be derived from them. Qualitative research properly seeks answers to
questions by examining various social settings and the individuals who inhabit these
settings. Qualitative research aims to demonstrate how humans arrange themselves
and their settings and how inhabitants of these settings make sense of their
surroundings through symbols, rituals, social structures, social roles, and so on.
Types of communication:
The respondents are using various types of communication in different
business situations and for different business purposes. However, the research
suggests that the type of communication utilized depends on the cultural background
of the person which they are communicating with.
1. Face-to-face communication
According to the findings, most of the interviewees answered they preferred
the face-to-face communication to other types of communication and they judged it to
be the most effective way of communicating. However, due to the geographical
distance it is often impossible to communicate face-to-face. Vietnamese interviewee
commented: In the ASEAN, face-to-face communication is extremely important.
When I went to the bar in Vietnam, it went well but I had to be dressed properly
(which means long sleeved clothes, nothing short or transparent).
2. E-mail
E-mail was judged to be an indispensable way of communicating. The
interviewees responded it is a very practical way of communicating. They are using it
with their colleagues on the same site and from the same culture, as well as with the

colleagues and clients all over the world coming from various cultural backgrounds.
However, some Vietnamese respondents answered that the use of e-mail is the most
effective when communicating with Americans, Chinese, Dutch and Scandinavians,
as they respond quickly.
3. Phone
The Vietnamese interviewee responded: With German, I mostly use the
phone because you have to use the phone with them if you want a fast response.
When you send them e-mails, sometimes it takes them ages to answer. Apart from
that, they like to talk on the phone and a friendly relationship is extremely important to
them. You cannot call a German guy and get straight to the point. First you have to
ask those couple of questions, which have nothing to do with work. I think that the
phone is the most effective way of communicating when you need an immediate
answer.
4. Videoconferencing
Videoconferencing is mostly used when holding business meetings with the
colleagues overseas and the use of it does not depend that much on the culture. This
type of communication is mostly used by higher management for global team
meetings.
5. Business meeting
Surprisingly, all of the interviewees labelled the meetings in Vietnam as rather
unsuccessful. Most of the participants thought that the meetings are being too long
and without clear objectives. Their answers suggest that they believe Vietnamese are
not communicating successfully during the meetings. In Germany the meetings are
short, straight to the point, we dont go into details. It is more management of
exception rather than task management, said the Vietnamese interviewee.
The Vietnamese respondent answered: For example, Italians talk a lot and the
meetings with them are long. Germans are much more organized and stick to the
agenda. In the Middle East it is completely different. There people bring out any
subject that comes to their mind including personal subjects.

Vietnamese interviewee said of German compared to the Vietnamese: German

always criticize, they always express their opinion and say what they think is good and
what is bad. In Vietnam, this is not the case. We always listen carefully till the end when
one is speaking. We never interrupt the speaker and if we want to make some
comments, we never make them in front of everyone. We wait for the right moment to
talk to the person in private if we want to give them our opinion about something.
Research design
In this study, we would like to have an in-depth firm level view to answer the
research question: What are the barriers of cross cultural communications for German
managers when opening new branches and subsidiaries in Vietnam. Bryman and Bell
(2007, p. 418) argue that qualitative studies provide a detailed account of what goes on
in the setting being investigated. Since the authors would like to have an in-depth firm
level study, the qualitative approach with a single case study, which can provide more
details and depth is preferred. This qualitative data consist of both primary data and
secondary data, which can be derived from five semi-structured interviews and some
documents from the Internet and libraries.
A part of the secondary data is taken from Hofstede resources' website page,
which is based on Hofstede theory and generates data (up to date) through official
channels. There are debates on whether Hofstedes study is valuable or not. Major
criticism against Hofstedes study is that it neglects the change of time (Holden, 2002).
Changing of some factors, for example, the changing economic development will
influence the result of cultural dimensions index (Tang & Koveos, 2008). However, the
cultural dimensions index's relevant scores are rather better than the corresponding
absolute scores. His cultural framework is still considered to be an important
contribution to distinguish various cultures (Newman & Nollen, 1996, refers to Triandis,
1982). Hofstedes study is a comprehensive study and also appears to be more reliable
and valid than any other study (Ambos & Schlegelmilch, 2008). Especially for studies,
only the empirical illustrations of the scores are used. Therefore, authors here believe
that it is fair and valid to use Hofstedes resources. As for the Internet sources, the
authors mainly use official websites such as SCB (Statistics Sweden's website) to
ensure the validity of the data.

Analysis method
In order to answer the research question, the analysis is set to be based on the
early theories that have been reviewed before. The primary data is designed to assess
the organizational communication in both Germany parent company and Vietnamese
subsidiary companies from three aspects: communication system, management style
and staff behavior. The secondary data that are the scores of Hofstede national cultural
dimensions index is designed to illustrate the cultural influence on organizational
communication. Based on the previous theories, we would like to build a matrix to
clearly illustrate the differences of management style, staff behavior and communication
system of the sample company between the German parent company and the
Vietnamese subsidiary. By comparing management style, staff behavior and
communication system of the sample company, with the consideration from a multicultural perspective and of the national culture influence, the barriers on firm level in
cross cultural communications in multinational firms will be unveiled.

Power Distance
G(35)
V(70)
Germany
(G)
Vietnam
(V)
Power
Power
Management style centralize decentrali-

Staff
Behaviors

-d

zed

High
emotiona
l distance
with
superiors

Equal with
superiors

Individualism

Masculinity

Long-term
orientation

G(67)

V(20)

G(66)

V(40)

G(83)

V(57)

Manager
him/herself
make
decisions

Decisions
are made
through
discussion
-s

Manager
expected to
be decisive
and
assertive

Managers
use intuition
and strive
for
consensus

Willing to
adopt
new
manage
ments

Ideas keep
in the
group

Ideas
within
whole
organization

High life
pressure,
work for
living

Low life
pressure,
work for
fulfillment

Longterm
success
are
preferred

Respect
for their
own
ways of
manage
ment
Short
results
expected

Communication
system

High
hierarchy
levels

Low
hierarchy
levels

Highcontext
communica
tion

Lowcontext
communic
-ation

Formal
communicat
ions are
preferred

Flexible and
can deal
with
surprises

Visions
are for
the future

Data and Analysis

Based on the theories of previous studies and the data of the sample company,
we find that cross cultural management barriers occur in the communications between
cultures as well as the communications between superiors and subordinates.
Management style
Organizations are forced to develop a set of management styles in order to
match the culture (Lee, Roehl & Choe, 2000). Germany (35) and Vietnam (70) score
differently in power distance index. This fact indicates that the distribution of power
within the organization varies between Germany and Vietnam result in different
management styles. The quality control manager in Germany shares her story with us
that one time; the German parent company made strict standards on one special order
for Vietnamese subsidiary company and the parent company knew that it was
impossible for Vietnamese subsidiary to deliver such high standard products. However,
when German manager asked the production manager in Vietnam whether they could
fulfill the requirement, Vietnamese manager struggled for a little while but said OK. But
their products hadnt reached the requirement at last. Because of high power distance
and high hierarchy level in Vietnam, subordinates are afraid of saying NO to their
superiors. Also because of the individualist culture, in German parent company, the
decision is fully discussed within the company before implementation and subordinates
are free to say NO as long as it is reasonable. The decisions are the work of the
group (According to the R&D manager of German parent company) rather than the
bosss decision. But, for most of the time their Vietnamese colleagues just follow the
decisions that are made by superiors without any doubt. These different ways of
decision making probably may result in the unexpected outcome from subsidiary
company.

Visions
are for
now

Another culture difference between Germany (67) and Vietnam (20) is

Individualism. Vietnam, with a score of 20 is a collectivistic society. This is manifest in a
close long-term commitment to the member group. Loyalty in a collectivist culture is
paramount and overrides most other societal rules and regulations. Such a society
fosters strong relationships, where everyone takes responsibility for fellow members of
their group. In collectivistic societies, offence leads to shame and loss of face.
Employer/employee relationships are perceived in moral terms (like a family link), hiring
and promotion take account of the employees in-group. Management is the
management of groups. However, the German society is a truly Individualist one (67).
Loyalty is based on personal preferences for people as well as a sense of duty and
responsibility. This is defined by the contract between the employer and the
employee. Communication is among the most direct in the world following the ideal to
be honest, even if it hurts and by this giving the counterpart a fair chance to learn
from mistakes. Therefore, German managers find it difficult to understand implications
of Vietnamese staffs. For example, Vietnamese people are often afraid of losing face,
they do their jobs in group to minimize the mistake, but the German style is completely
different, German companies encourage the confidence and independence of each
individual. Each member has to admit their fault and have no right to blame for their
colleagues. German managers usually assess one staff based on his/her dedication to
work instead of group achievement. Thus, it is not easy for German managers to
manage the staffs from different culture without misunderstanding and conflict.
The scores of masculinity are also varying between Germany (66) and Vietnam
(40), which illustrates that German managers are decisive and assertive and
Vietnamese managers are intuition and strive for consensus (Hofstede, 1997, p. 96).
The gap between these scores is not significant. In Germany, managers are expected to
know everything in relative field in order to determine organizational objectives and
make a right decision which is the responsibility for German managers, in Germany,
Power can be gained through contributing to the company. In Vietnam, the role of
Vietnamese managers is more like a mediator among subordinates to coordinate and
group them. Vietnamese managers are expected to appropriately empower employees

and utilize employees professional knowledge to achieve a purpose. It is difficult to say

which one is better or not. If Vietnamese subordinates are managed by German
management style, the conflict will occur easily, because the argument will happen
between superior and subordinate.
Another culture contrast between Germany (83) and Vietnam (57) is Long-term
orientation. German managers said that they are willing to learn and adopt the modern
way of managing and organizing from the Vietnamese subsidiaries. However, it is not
easy to really bring the essence of Vietnamese management into the organizing
progress. In a short- term orientation culture, Vietnamese feel that their management is
more efficient and effective compared with their German companies. When problems or
misunderstandings occur in the communication between German parent company and
Vietnamese Subsidiary, Vietnamese managers keep feeling frustrated instead of finding
the reason why these keep happening. In other words, as the superior of Vietnamese
subsidiary, German managers fail to take culture differences as a significant influence
on managing and communicating. As a result, there are frustrations and barriers on
communicating between German parent company and Vietnamese subsidiary.
Staff behaviors
As in a HC (High-context) culture, people are deeply involved with each other
and the relationships between people are complicated, especially in working places. As
a result, people in Vietnam subsidiary prefer to work collectively. However, this deeply
involved relationship does not extend outside the group: people within the same group
can communicate without any hesitation; people do not belong to the same group will
hardly communicate with each other. In addition, according to Holden (2002) that in a
low-context culture, people coming from other cultures can easily match these
machinations, but in a high-context culture, these high-context machinations cannot be
easily matched by people coming from low-context culture. As the manager come from
a low-context Germany, The German production manager has the feeling that there are
not enough communications between the German company and its subsidiary in
Vietnam, and when he tries to communicate with Vietnamese employees they seem
afraid of expressing themselves. The quality control manager also feels that Vietnam

subsidiary is not willing to contact with German company unless emergences.

Communication can be made only when both German company and Vietnamese
subsidiary are willing to express the real thoughts of themselves. Actually, German
manager do not realize that they have to deal with the differences between high-context
culture and low-context culture. In addition, the programming of people from low-context
culture get used to a high-context culture is time-consumed.
As shown in the previous part, the individualism scores have a great difference
between Vietnam (20) and Germany (67). The parent company in German prefers
group work that can involve all departments into the discussion and make
comprehensive decisions. Vietnamese company has already applied some of the
German management into the company. Group work is also one of the forms of
handing issues. However, the essences of group work are not learnt by Vietnamese
subsidiary company: people just sit together and wait for the decision from the
managers. Staffs are afraid of expressing themselves in the group. Some of the
managers think it is a waste of time asking peoples suggestion when no one is willing
to say.
Because of the high power distance in Vietnam, subordinates are depending on
the superiors (Hofstede, 1997, p. 37). In other words, employees are used to follow the
managers decisions, and managers are expected to take all initiatives in organizations.
While in Germany, subordinates and superiors are treated equally. Ybema and Byun
(2009) argue that in different culture contexts, peoples identity talks are different
because of the differences on power distance. As a result, in multi-culture firms, there is
a challenge on understanding the identity talk of individuals with different culture
background.
With the culture of short- term orientated, Vietnamese company treat their brand
seriously, and they will never risk it with low quality products. They could not understand
why German company tends to use low quality masteries in order to lower the cost even
though this action would damage their brand in the future. The German long- term
orientation culture teaches people to have a second thought on gain and loose, which
means they value long term success and setbacks are allowed in the process of

developing. German tends to make decisions for the future developments and they
believe that the sacrifice of now may benefit the future. They use low quality materials in
order to lower the cost for now and increase the funds for future development. However,
we cannot deny that these setbacks may bring problems like damage reputation and so
on.
Communication System
The German parent company expresses itself as to be the leading supplier
worldwide of high quality and would like their brand to stands for high quality, satisfied
customers and competence. These vision and mission statements are respected by
everyone in German parent company. Vietnamese managers know these statements.
However, they do not think it is their responsibility to picture the future for the company.
Those statements to them are just sentences rather than the slogans that can represent
the spirits of the company, or simply, they do not have a clear vision of the company.
When it comes to long term orientation (Germany scores 83, Vietnam scores 57, in
German managers view, vision and mission are for the future: those are the place
where they want to go. However, vision to Vietnamese managers is the unchanging
ideas of the company and it stands for the present and the future of the firm. When
asking

the

question

whether vision stand for the

present or the

future

misunderstanding occurs between German managers and Vietnamese mangers. If the

multinational company would like to communicate well in the future, a common goal and
a mutual understanding of the company are needed.
Obviously, Vietnam and Germany have different cultures, through Hofstedes
national culture dimensions the cultures score differently. Lee, Roehl, and Choe (2000)
emphasize that national culture, as an attribute of the country will influence a national
management system. Ouchi (1977) argues that communication system of an
organization is influenced by the structure of the organization. Structure as the
hardware (Rausch, Halfhill, Sherman & Washbush, 2001) of organization is built based
on the particular circumstances and situational variables (Burnes, 1996). Along with the
development of company and the enlarging of size of company, the hierarchy level will
increase correspondingly (Ouchi 1977). Both German parent company and

Vietnamese subsidiary company are medium sized companies. In the interviews, we

find that the structure of two companies to some extent has hierarchy levels. However,
in both German managers and Vietnamese managers points of view, German parent
companys hierarchy level is lower than that of Vietnamese subsidiary company. One of
the most important reasons of this phenomenon lies in the difference of power distance
in Germany (35) and Vietnam (70).
The differences on hierarchy levels of Vietnamese company and German
company lead to diversity of communication systems. In Vietnamese subsidiary
company, any problem and urgency has to be reported to the superiors in order to make
solution and get contact with relative department, which can be regarded as a formal
communication system. In German parent company, both formal and informal
communication system are used. In other words, German communication systems are
more tolerant to accidents and are more flexible, while, Vietnamese subsidiarys
communication systems are lacking the ability of dealing with accidents. Vietnamese
managers did not take any action to correct 1mm error of the product, which can be
corrected easily. Instead, they only reported this problem to German superior and
waited for the order about what they should do. In a HC culture, Vietnamese staffs are
not willing to extend their relationship outside the group where they belong to. Therefore
a feasible way of organize people from different groups is to use formal communication
systems. While in a LC culture like Germany, people are not highly involved and
informal communication systems are feasible. However, as the organization grows
larger formal communication systems are also employed. In an organization, both
formal and informal communication system are feasible, but considering that in the
context of cross cultural management, sometimes a formal communication system is
more time-consuming and inefficient because of the distance (geography) which leads
to many difficulties such as time difference, and impossible to communication face to
face. In addition, language difficulties represent one of the biggest barriers to crosscultural communication (Munter, 1995, p. 74). Manager in German parent company
have a good English skill. However, because of the tremendous language diversity
between Vietnamese and German, a big gap exists during the translation from
Vietnamese to German in the light of Vietnamese thinking.

Because of the differences on management style and staff behaviors, the

communications between Germany and Vietnam, German superiors and Vietnamese
subordinates are facing barriers. When a German manager (who is intuition and strive
for consensus) want a Vietnamese employees (who is afraid of expressing his/her idea)
opinion on certain issue, how could they communicate without knowing the expectations
towards each other? These unknowing expectations are the barriers of cross cultural
communications in multinational firms.

VIII.

Work Schedule
The first version of the questionnaire was tested on one interviewee and turned

out to be slightly too long and time consuming, therefore the least relevant questions
were dropped out. The final version of the questionnaire consists of 27 questions,
which are divided into four different sections, the first one being the introductory
section. Each section attempts to clarify certain essential questions and the central
focus of the study. The introductory section provides some general personal
information about the respondent for research purposes. The first section investigates
the interviewees personal international experiences and their crosscultural
perceptions, while the second section examines intercultural issues in the company
itself. Finally, the last section explores the cross-cultural communication practices and
problems. The final version of the questionnaire was tested successfully before the
beginning of the research.
Each potential interviewee has received an email inviting them to participate in
the research and explaining them the purpose and objectives of the research. A
questionnaire example was attached to the email in order to enable the respondents to
familiarize themselves with the questions and eventually prepare for the interview. The
interviews were conducted between 6th of September and 23rd of September and
each one of them lasted on average 15 minutes. The longest interview required 20
minutes, while the shortest lasted for 10 minutes.

IX.

Reference
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5.

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6.

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7.

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11.

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12.

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X.

Fees
The budget of 500,000VN is distributed as below detail.

Lists

Cost

Overheads

300,000VN

Street interview (10,000VND/questionnaire completed)

200,000VN

Total

500,000VN
Full amount of money is required to pay 7 days in advance before starting the

research. Overhead costs consist of printing fees, reading materials, poster... We

interview 20 Vietnamese people, each is paid 10,000VN per questionnaire completed.
From the total fees, we will provide the following documents:
1.
1 research proposal, which include questionnaire
2.
1 Poster

XI.

APPENDIX:
APPENDIX 1: HOFSTEDES DIMENSIONS CUES

Table 1: Hofstedes dimensions

Small power distance
Hierarchy in organisations constitutes an
inequality of roles, established for convenience.
Decentralisation is popular.
Subordinates expect to be consulted. The
ideal boss is a resourceful democrat.

Large power distance

Hierarchy in organisations reflects an
existential inequality between higher-ups and
lower-downs.
Centralisation is popular.
Subordinates expect to be told what to do.
The ideal boss is a benevolent autocrat or good
father.

Collectivist
Relationship between employer and employee
is perceived in moral terms, like a family link.
Relationship prevails over task.

Individualist
Relationship between employer and employee
is a contract supposed to be based on mutual
advantage.
Task prevails over relationship.

Feminine
Managers use intuition and strive for consensus
Focus on equality, solidarity and quality of
work life.
Resolution of conflicts by negotiations and
compromises.

Masculine
Managers expected to be decisive and
assertive.
Focus on equity, competition among colleagues
and performance.
Resolution of conflicts by fighting them out.

Strong uncertainty avoidance

Emotional need for rules, even if these will
never work.
Suppression of deviant ideas and behaviour.
Motivation by security.

Weak uncertainty avoidance

There should not be more rules than strictly
necessary.
Tolerance of deviant ideas and behaviour.
Motivation by achievement.

Source: Lagrosen, Exploring the impact of culture on quality management,

2003, p.478, Table I.

APPENDIX 2: UNCERTAINTY AVOIDANCE CUES

Table 2: Uncertainty avoidance (UA) cues

Low UA

High UA

Few rules and laws

Many rules and laws

Citizens protests acceptable

Citizen protests unacceptable

Tendency to integrate minorities

Tendency to repress minorities

Make decisions without precise answers

clear structure
Low anxiety with ambiguity and risk

or Hesitant to make decisions until all questions

answered and clear structure in place
High anxiety with ambiguity and risk

Change jobs for personal growth

Prefer to stay with one organization

What is different is interesting

What is different is dangerous

p. 22.

Source: Lamb, Understanding Cross Cultural Differences, 2001,

APPENDIX 3: Hofstedes country figures

Source: http://www.geert-hofstede.com

APPENDIX 4: INVITATION TO PARTICIPATE IN CROSS- CULTURAL

COMMUNICATION MANAGEMENT RESEARCH

Hello everyone,
Currently we are writing a thesis with a title Cross-cultural business communication
barriers of German managers in Vietnam for my project. The first (theoretical) part of
the thesis is a review of various theoretical approaches about culture, cross-cultural
management and communication. In the second (empirical) part of the thesis, we are
planning to conduct a research based on the interviews with Vietnamese employees.
This research would offer an insight into daily cross-cultural communication practices
in a company and help me analyze the actual cross-cultural communication problems.
Therefore, we would be very grateful if you could participate in the interview. We
suggest that you choose a date which suits you from now until the 23rd of September.

Kindest regards,
Group Friendly Vietnam
THE BASIS FOR THE INTERVIEW QUESTIONS
A) Information about yourself for statistical purposes
1.

What is your nationality?

2.

What was your citizenship at birth?

3.

Are you a male or a female?

4.

What is your current working position?

B) Questions regarding the cultural differences and their influence on
business interactions

5.

Is your current working position in your home country? If no, how long have you

been working in your current country? If yes, have you ever worked outside your home
country? Please comment specifically on your international working experiences.
6.

Did you experience anything surprising or odd during these experiences which

you attribute to the differences between the cultures?

7.

Please think of an ideal job, disregarding your present job. In choosing an ideal

job, what would be the most important to you?

8.

From which countries different than yours do the colleagues you interact with

come from?
9.

What would you say about the task vs. relationship orientation of the people you

work with compared to yourself? Do you think that these differences are culture
specific?

10. What do you think about the organizational structure of the company (is it
too centralized/ too structured)?
11. Do you feel that you are being consulted enough by your managers when it comes
to taking decisions concerning the projects you work on? Do you feel the difference
regarding this subject on your current position compared to the position in your home
country?
12. What would you say regarding the attitude towards time of your colleagues to
yours? Are they usually on time?
13. What would you say concerning their regards on male vs. female roles in business
communications?
C) Questions regarding the cross cultural management
14. If you are/were working in a foreign country have you received any particular
training on cross-cultural management before moving to that position? Please
comment.
15. Are you aware of any existing protocols, modes or trainings within the company
related to the cultural differences?
16. According to you do the cultural differences within the company require a greater
effort during the daily business interactions?
17. Have you ever studied the culture of the foreign country where you are/were
working? Why (for business purposes, personal culture, everyday life, etc.)?
18. Would you say that your colleagues/managers/subordinates take/took into
consideration that you are/were coming from a different culture?
D) Communication management questions

19. Which methods of communication (face-to-face communication, e-mails,

videoconferencing, etc.) are the most commonly used between you and your
colleagues of same or from a different culture? Which method do you find the most
effective?
20. Have you ever find anything surprising (for example: length, topic, content) in an email, a phone conversation or a videoconference with a colleague from a different
culture?
21. Is the nonverbal communication important to you? Have you ever found anything
different or confusing in the nonverbal communication with a colleague from a different
culture?
22. When having communication problems is it usually with your manager, subordinate
or colleague?
23. How often do you have conflicts with your co-workers of same or from a different
culture?
24. What are the most common reasons for conflicts? Would you say that the cultural
differences are one of them?
25. Which language(s) do you use at work? Would you say that some of the
misunderstandings are due to the use of a foreign language?
26. How successful are the business meetings? Do you sense any difference between
the business meetings with the colleagues from your cultural background and the
international business meetings regarding the successfulness, length, atmosphere,
and understanding?
27. What do you think about the information sharing between you and your managers/
colleagues? Have you found anything surprising about it when communicating with
managers/ colleagues/ subordinates from another culture?