erika vaiginiene [email protected] vilnius university lithuania

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Erika Vaiginiene Erika.vaiginiene @ef.vu.lt Vilnius University Lithuania

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Page 1: Erika Vaiginiene Erika.vaiginiene@ef.vu.lt Vilnius University Lithuania

Erika [email protected]

Vilnius UniversityLithuania

Page 2: Erika Vaiginiene Erika.vaiginiene@ef.vu.lt Vilnius University Lithuania

Competence is on of the most important factors that may explain firms existence, boundaries, structure and development at all.

Page 3: Erika Vaiginiene Erika.vaiginiene@ef.vu.lt Vilnius University Lithuania

Synonyms of “Trans-cultural competence”

Intercultural competenceInternational competenceGlobal competence

Page 4: Erika Vaiginiene Erika.vaiginiene@ef.vu.lt Vilnius University Lithuania

Cross-cultural competence

the ability of individuals to function effectively in another culture;

a set of congruent behaviors, attitudes, and policies that come together in a system, agency, or among professionals and enables that system, agency, or those professionals to work effectively in cross-cultural situations;

is an individual’s effectiveness in drawing upon a set of knowledge, skills, and personal attributes in order to work successfully with people from different national cultural backgrounds at home or abroad.

Page 5: Erika Vaiginiene Erika.vaiginiene@ef.vu.lt Vilnius University Lithuania

Prerequisites for cross-cultural competenceIn order to be culturally competent, an individual

would have to: (1) possess a strong personal identity;(2) have knowledge of and facility with the beliefs and values

of the culture;(3) display sensitivity to the affective processes of the

culture;(4) communicate clearly in the language of the given cultural

group;(5) perform specially sanctioned behavior;(6) maintain active social relations within the cultural group;(7) negotiate the institutional structures of that culture.

Individual’s ability to step outside his/her cultural boundary, to make the strange familiar and the familiar strange, and to act on that change of perspective.

Individual must have the motivation to use the knowledge available.

Page 6: Erika Vaiginiene Erika.vaiginiene@ef.vu.lt Vilnius University Lithuania

Personal competence (Johnson, Lenartowicz and Apud, 2006)

Page 7: Erika Vaiginiene Erika.vaiginiene@ef.vu.lt Vilnius University Lithuania

Personal attributesValues;Beliefs, normsPersonal characteristics

Unconstrained curiosityFlexibility; Decisiveness;Perseverance;Sincerity;DualityPerceptionSelf-Efficacy, etc…

Page 8: Erika Vaiginiene Erika.vaiginiene@ef.vu.lt Vilnius University Lithuania

Personal skillsThe Oxford Dictionary defines skill as ‘expertness,

or practiced facility in doing something’;It is the behavioral component of CC, and includes

abilities and aptitudes; Important abilities for CCs:

foreign language competence, adapting to the behavioral norms of a different

cultural environment, effective stress-management, or conflict resolution.

Page 9: Erika Vaiginiene Erika.vaiginiene@ef.vu.lt Vilnius University Lithuania

Cultural knowledge - has a positive effect on other [cross-cultural competence] attributes and maximizes intercultural competency.

Page 10: Erika Vaiginiene Erika.vaiginiene@ef.vu.lt Vilnius University Lithuania

Culture-general knowledge a focus on awareness and knowledge of cultural

differences. includes an examination of the participant’s own

mental makeup and how it differs from that of others. applies to any cultural environment; deals less with how to live in any specific culture and

instead focuses on how to work effectively in a cross-cultural environment.

includes the components of culture, how cultural values are learned, and frameworks for understanding and comparing/contrasting different cultures.

a general knowledge of the complex environment in which international business operates, within the different economic, political, legal, social, financial and technological systems that co-exist.

Page 11: Erika Vaiginiene Erika.vaiginiene@ef.vu.lt Vilnius University Lithuania

Culture-specific knowledgefocus on specific knowledge about another culture;includes information about geography, economics,

politics, law, history, customs, hygiene, what to do, and what not to do – but spends little time on the participants’ own cultural introspection.

includes learning the language of the culture, although the ability to communicate effectively in the foreign language is more properly categorized as a skill.

Page 12: Erika Vaiginiene Erika.vaiginiene@ef.vu.lt Vilnius University Lithuania

A model of cross-cultural competence in international business (Johnson, Lenartowicz and Apud, 2006)

Page 13: Erika Vaiginiene Erika.vaiginiene@ef.vu.lt Vilnius University Lithuania

Institutional ethnocentrismAppointment of home country nationals to key

executive positions in overseas affiliates;Imposing of “the ways of working” at the

headquarters in the home culture on affiliates abroad ;

Promotes the home culture’s ways of doing things;The extent to which institutional ethnocentrism

affects the operations of a foreign subsidiary depends on the tightness of the organizational culture;

Can impair the expatriate employees’ ability to work effectively with other national groups

Page 14: Erika Vaiginiene Erika.vaiginiene@ef.vu.lt Vilnius University Lithuania

Cultural distanceoverall difference in national culture between the

home country and affiliates overseas.as the cultural distance increases, the difficulties

facing business processes overseas also increase;reflects not only difference in cultural values, but

also in other environmental variables, too, such as the language, the economy, and the political and legal systems.

Page 15: Erika Vaiginiene Erika.vaiginiene@ef.vu.lt Vilnius University Lithuania

Cross-Cultural Competence in International Business (Johnson, Lenartowicz and Apud, 2006)

Page 16: Erika Vaiginiene Erika.vaiginiene@ef.vu.lt Vilnius University Lithuania

Competence building

International trips;Experience of work in a global team;International training;Foreign assignments.

Page 17: Erika Vaiginiene Erika.vaiginiene@ef.vu.lt Vilnius University Lithuania

Impediments for International trainingmany cultural training programs fail because they

tend to put too much emphasis on culture-specific knowledge ‘at the expense of a more general learning principle’;

training programs do not meet the needs of the trainees ;

certain components of cross-cultural competence cannot easily be taught;

And certain individuals may have an aptitude for developing cross-cultural competence whereas others do not.

Page 18: Erika Vaiginiene Erika.vaiginiene@ef.vu.lt Vilnius University Lithuania

Building competence versus Contracting competence

not all competences - particularly those relating to the exercising of judgment in a climate of uncertainty - are contractible;

a complete market for all entrepreneurial and managerial skills is impossible in principle;

compared with goods and other services, information and knowledge cannot be so readily `bought as required‘;

we do not know the value and nature of information until after it is purchased;

uncertainty and ignorance create the ``necessity of acting upon opinion rather than knowledge'‘;

the purchase or allocation of competence itself require competence

Page 19: Erika Vaiginiene Erika.vaiginiene@ef.vu.lt Vilnius University Lithuania

Competence monitoringto develop a valid, reliable measure of CC that

would serve several practical purposes:it could be used as a selection tool for IB positions it could be used as a diagnostic tool, to determine

areas of strengths and weaknesses in an individual’s cross-cultural repertoire

to screen applicants for certain IB positions, identifying areas in which further cross-cultural training is needed.

for expatriate performance appraisalsLatent construct of cultural intelligence can be

used for a measure of CC.

Page 20: Erika Vaiginiene Erika.vaiginiene@ef.vu.lt Vilnius University Lithuania

Latent construct of cultural intelligence

the cognitive skills that allow him/her to function effectively in a new culture;

the motivational impetus to adapt to a different cultural environment;

the ability to engage in adaptive behaviors.

Page 21: Erika Vaiginiene Erika.vaiginiene@ef.vu.lt Vilnius University Lithuania

Literature

Johnson, Lenartowicz and Apud (2006) Cross-cultural competence in international business: toward a definition and a model, Journal of International Business Studies No. 37, p.525–543

Hodgson (1998) Competence and contract in the theory of the firm, Journal of Economic Behavior & Organization, Vol. 35, p. 179-201;

Gary Knight and Daekwan Kim (2009) International business competence and the contemporary firm, Journal of International Business Studies, No.40, p.255-273