Chapter 2: National Environmental Differences in Saudi Arabian Culture

Adjusting to a pervasive, theocratic, national culture grounded in Islamic law, religious convictions, and behavioral traditions.

It allows men and women to mix in the workplace, marking a potential shift towards a more open environment.

An affluent niche of Saudi consumers.

Their products, facilities, and operating strategies.

They are rigid and restrictive, yet also show signs of change and adaptability.

Opportunities arise due to the contrasts and contradictions in the country, which can be leveraged by companies willing to adapt.

Understanding cultural differences is vital to avoid cultural collisions and ensure successful business practices, as cultural diversity can be a source of competitive advantage for global firms.

The company might need to consider differences in values, attitudes, and beliefs, such as religious practices, customs, and business etiquette, which may impact their business operations and success.

The company might need to assume additional costs such as accommodation and transportation for employees, cultural training programs, and adaptation of business practices to comply with Saudi laws and regulations.

Cultural diversity can be a source of competitive advantage for global firms, as it brings together people of different backgrounds, perspectives, and experiences, leading to innovative ideas and approaches.

Companies may face challenges such as cultural collisions, misunderstandings, and difficulties in adapting business practices to comply with local laws and regulations.

Being sensitive to the culture where they operate is important for companies to avoid cultural collisions, build trust with local partners and customers, and ensure successful business practices.

Developing an acute awareness of the cultures in which they operate.

Daily routines and rules, codes of social relations, language, emotive expression, and concepts of luck.

In childhood.

Cultural imperialism.

Language diversity can undermine a firm's ability to conduct business, integrate workforces, and market products nationally.

Because they see language as an integral part of their culture.

Religion can shape values and beliefs, affecting cultural imperatives and taboos, and thus influence business practices, such as decisions on products, organization, financing, and management.

Violence among religious groups can damage property and disrupt business activities for both home and host country firms.

Some important aspects of culture that affect business practices include issues in social stratification, such as hierarchies, class, status, and financial rewards.

Ascribed group memberships are determined by birth, such as gender, family, and age, while acquired group memberships are based on individual choices, such as religion, political affiliation, and profession.

Country-by-country attitudes vary towards race and ethnicity, with different cultural norms and values shaping social stratification and business practices.

Social stratification creates hierarchies and influences a person's class, status, and financial rewards, shaping cultural values and business practices.

Cultural distance refers to the degree of similarity between two societies. It affects a firm's international operations because a firm needs to make fewer adjustments when moving within a culturally similar cluster, and more adjustments when moving from one distinct cultural cluster to another.

Culture shock is the trauma one experiences in a new and different culture because of having to learn to cope with a vast array of new cues and expectations. It can lead to difficulties in adjusting to a new culture, and reverse culture shock can occur when returning home.

Learning as a two-way process is important in international business because it allows companies to transfer knowledge from home countries abroad and from host countries back home, maximizing the potential benefits of their foreign presence.

Two factors that can influence the success of implementing change in a foreign culture are value systems and resistance to too much change. Changes that upset important values or require too much adaptation may encounter resistance.

Companies need to accommodate cultural differences when operating in a foreign country because it can lead to greater success and acceptance in the host country. Changes that do not interfere with deep-seated customs are more likely to be accepted.

The benefit of transferring knowledge and expertise between countries in international business is that it can lead to a competitive advantage and greater success in foreign operations.