Harmonization of Intercultural Barriers in International Business: case of Latvia and Norway

Krista Grike

Abstract


Accessibility of information, weakening of national protectionism, creation of different trade blocks, technology development and many other processes in modern enterprises require to look beyond their national borders. This can be called – globalization and its ways of expression. The aim of the paper is to analyse and evaluate different cultural dimensions in international business environment in order to develop suggestions for harmonization of intercultural barriers.

Different research methods are used, for example - comparison method is used to evaluate individual cultural background`s impact on the work environment and management style, interviews and expert method is used to specify the observations and monographic method helps to integrate theory of cultural dimensions in the results of the study.

Cross-cultural differences most effectively can be recognize in comparison, so the research paper subject is management of cultural differences and the scope is cultures of the business environment in Latvia and Norway.

Harmonization of cultural barriers in International Business is one of the main preconditions for sustainable entrepreneurship. The results obtained can be used in organizational culture management development by introducing the necessary changes in the identified areas.

Research on factors influencing management leadership style and organizational manner based on cultural differences between too or more nationalities provides recommendations at enterprise level for CEOs` or higher level of company management.

 

 

 

 

 

 

The amount of foreign investments in Latvia according to the data of Bank of Latvia and the Central Statistical Bureau in the period from 2005 - 2013 has increased almost six times. This has created an international business environment, requiring people from different cultural backgrounds to work in a close cooperation to achieve common objectives. Data from Investment and Development Agency of Latvia shows that (at the end of 2013th), countries with the largest investments in Latvian enterprises` capitals are Sweden, Netherlands and Norway. Norway is in the first place in the “Human Development Index” ranking and sixth in the “Doing Business –Economy” ranking which confirms that Norway is one of the most successful of Scandinavian countries. In 2013th 337 Latvian Companies reported Norwegian direct investments in their capital. Norwegian and Latvian manager leadership styles and organizational manner are affected by cultural barriers. According to constant changes in international economy it is important to minimize the negative impact of cultural differences as much as possible. The result of this research is anticipated as cross-cultural differences minimizing instrument which could be used to maximize the economical gain of both sides.


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