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Intercultural Management – Doing Business Across Borders.
A Field Report from the City of Angels.
The second part of Lucerne’s Summer School program entitled Intercultural
Management – Doing Business Across Borders took place in the pulsating megacity
of Bangkok – which native Thais refer to as “Krung Thep” or “City of the Angels” -
August 21 – 27, 2008. Rather than coming to Thailand for the beautiful beaches and
warm climate, participants from a wide range of industries came instead to strengthen
their intercultural skills. After all, as Prof. Geert Hofstede, Professor Emeritus at
Maastricht University, put it so fittingly: “Culture is more often a source of conflict
than of synergy. Cultural differences are nuisances at best and often a disaster.”
“Sabai, sabai” – the Thai word for “comfortable” – describes the first get-together between
the students and instructors at the College of Management at Mahidol University (CMMU),
which was conducted by Prof. Montri Chulavatnatol, Professor Emeritus at Mahidol
University. The students were gently introduced to a whole new world with a selection of Thai
specialties accompanied by interesting discussion on the differences between Asian and
European cultures.
Cross Cultural Management: Asian and Western Approaches was also the topic of the first
class at CMMU. Mahidol University, which was renamed in 1969 by HM King Bhumibol
Adulyadej in honor of his royal father, HRH Prince Mahidol of Songkla, is one of Thailand’s
most respected universities.
Dr. Astrid Kainzbauer, a specialist in intercultural
management, intercultural training, cultural
influence on teaching/learning and international
education, guided participants with great
enthusiasm and expertise through the multifaceted
differences of Asian cultures and pointed out
possible problematic issues and approaches to
resolving them. She used practical examples and
a high level of interaction to achieve the
understanding needed for the course - which is
useful, since those who do business internationally
can scarcely avoid Asian cultures. Asians make up
60 percent of the world’s population, and China is notable as the second-most important
trading partner of the EU.
After lunch at the Central World Plaza - with more
than 830,000 square meters Bangkok’s largest
business and office complex - the group met for its
first business meeting with the executive director
for corporate affairs of Néstle Thailand. With great
passion, the charismatic man explained the Néstle
“think globally, act locally” philosophy and its
implementation in Thai culture. Time is perceived
differently in Thailand and – very appropriately –
spent a great deal of time answering the
participants’ questions, even delaying his next
appointment to do so.
The students had the evening off to do as they pleased. For some it offered an opportunity to
enjoy Bangkok’s nightlife, for others it was a chance to have the stress of the journey
massaged away.
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The next morning at CMMU was devoted to the topic Retailing and Consumer Behavior in
Asia. Assistant Prof. Randall Shannon specializes in retailing, shopping behavior, branding,
private-label brands and consumer
Individualism versus collectivism behavior. Prof. Shannon used many
Large versus small power distance successful and unsuccessful examples to
High versus uncertainty avoidance show how different Asian retail and
Masculinity versus femininity consumer behavior is both within Asia and
Abstract versus associative when compared to Western countries.
„ The Five Dimension of Cultural Value Orientation“ These were supplemented time and again
Prof. Geert Hofstede
with further theoretical approaches to
cultural differences, such as The Five Dimensions of Cultural Value Orientation by Prof.
Geert Hofstede. The instructors had coordinated their efforts very well; there were scarcely
any repetitions during the entire week. The Skytrain case study was one good addition.
Although Bangkok is drowning in traffic, Thais hardly use the Skytrain.
In the afternoon, the minibus rather than the Skytrain
was the mode of transportation to Central World
Plaza, Bangkok’s lifestyle landmark. This time the
students were welcomed by the management of the
Central Retail Corporation (CPN). The Central group
of companies, which includes CPN, is a family-held
corporation and is among Southeast Asia’s five largest
business groups, with more than 38,000 employees.
At CPN, too, a great deal of time was devoted to
showing the state-of-the-art in Thai retailing and to
answering questions – time is not money in Asia.
The afternoon was rounded out with a personal tour through Central World Plaza. And
anyone who had not yet had enough of retail could make good use of the Central Privilege
Discount Voucher for their shopping.
As the weekend approached, some of the barriers to using the Skytrain
that had been mentioned during class were experienced first-hand:
Thais avoid walking, and escalators leading to the Skytrain are located
at only a few locations. The stairs are steep and therefore some work
up a sweat in the hot, humid weather. This isn’t exactly ideal for
Asians, who like to dress well. Thais also love their cars, which are a
status symbol, even if there’s hardly any forward movement in them.
On average, cars travel just 7 km per hour on the streets of Bangkok.
Because the course ran from Wednesday to Wednesday,
participants had the opportunity to learn more about
Thailand on the weekend. For example, on Saturday the
CMMU organized a visit for all interested students to the
royal palace, perhaps the most impressive landmark in
Bangkok. The palace, surrounded by a moat, is located in
the heart of Bangkok’s old town district and covers an area
of more than 200,000 square meters. It consists of
numerous buildings such as the Wat Mahathat (palace
temple) and the Wat Phra Keow (royal chapel). The Wat
Phra Keow houses the famous emerald Buddha, the holiest Buddha statue in Thailand.
Although the palace no longer serves as the royal residence, the complex is used by King
Bhumibol Adulyadej for official ceremonies and for special events.
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On Sunday, CMMU also arranged an exciting
journey into Thailand’s past. The excursion led to
Ayutthaya, about 70 km from Bangkok. Until it was
destroyed by the Burmese Army in 1767,
Ayutthaya was the capital of Siam and was the
center of trade, the arts and religion. Only ruins
are left of the former capital city with the Chedis
and palaces. But the remains of over 500 temples,
palaces and city gates give some indication of the
former glory and wealth of this city. Today
Ayutthaya is a UNESCO World Heritage Site.
And for the individualists, a vibrant city full of contrasts
remained to be discovered – a place with a fascinating mixture
of traditional western and eastern cultures, where poverty and
wealth as well as glamour and misery are in close proximity to
each other. And in fact, it is less hectic than it first appears.
Thais are as unlikely to lose their composure as they are to
lose their patience. They move deliberately and quietly and are
friendly and helpful toward “Farangs” – the Thai term for white
foreigners - even if their generally poor knowledge of English
can lead to some confusion. To save face, Asians will answer
with “yes,” even if they don’t understand what’s being said. But
this “yes” can mean any number of things: “Yes, I hear what
you say”; “Yes, I hear but don’t agree”; “Yes, I think I
understand”; or “Yes, I will try”, all delivered with a charming
smile. But the true feelings behind these smiles are often
difficult or impossible to discern, as Thais actually have 13 forms of smiling to express their
thoughts and feelings.
Entrepreneurship and New Ventures in Asia was the introduction to the new week of the
course. Assistant Prof. Sooksan Kantrabutra specializes in entrepreneurship and innovation
management, public policy on research, and technology management and innovation
systems. He is also part of the Thailand team for the Global Entrepreneurship Monitor (GEM)
– the largest ongoing study of entrepreneurial dynamics in the world – a study that the
University of St. Gallen, the IMD and the École Polytechnique Féderal also participate in. He
provided an in-depth examination of the study and highlighted the most important aspects of
Asian entrepreneurship. A wide range of case studies were used to clearly illustrate the
numerous challenges that arise when establishing a company in Asia.
In the afternoon a visit was paid to Bathroom Design, a
leading manufacturer of bathroom furniture and
accessories and winner of multiple different awards,
including the prestigious IF Award 2007. The management
vividly showed how the philosophy of sufficient economy
and management – always return added value and benefits
to customers and employees, as well as show social and
environmental responsibility – is experienced as more than
just words at Bathroom Design, as evidenced by the Good
Governance Award 2007. Or in the words of His Majesty
the King Rama IX: “If we are happy with what we have at
our demand, we will have less greediness; when we have less greediness, we will less
exploit other people. If every country has such idea, not in terms of economy, doing
everything in a moderate way, not doing anything so extreme and not being greedy, we will
live happily.” A tour through the factory rounded out the day.
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August 26, 2008 – perhaps the most memorable day of the course and the day of a visit to
the Oriental Bangkok Hotel, started with Learning Organizations (LO) in Thailand and Asia:
Issues and Practices. It was
Organization-wide free flows of ideas, know-how, identity and spirit presented by Assistant Prof.
Communities of practice; informal dialogue; shared creativity; no one source of
ideas („no deference to expert ‘dictat’“) Brian Hunt, a specialist in
On-going collective transformation and self-improvement public sector management,
A LO facilitates the development of its members and itself
Dispersed learning leadership, climate creation and facilitation
public sector reform, and
Learning leadership at all levels; organizational climate supports and encourages culture and behavior in public
experiments and sharing of experiences; line managers / supervisors are coaches,
co-leaders, and role models of learning sector organizations. Prof. Hunt
Open dialogue engaging multiple perspectives provided a vivid description of
Sharing of knowledge and expertise is on merit not seniority; organizational
climate supports active debate (not passive acceptance); members can criticize
the LO concept, and his
without fear of reprisal extraordinarily in-depth
Protean career contracts knowledge of Asian history,
Employees are adaptable/flexible in exchange for personal development
„ The Five Ideals of Learning Organization“ Robin S. Snell (2002) The Learning demography, economy and
Organization, Sensegiving and Psychological Contracts: A Hong Kong Case, politics was impressive. He
Organization Studies, 23/4, 549-569
answered students’ questions
fully in keeping with one of the five ideals of LO – “open dialogue engaging multiple
perspectives”. There was even enough time remaining to discuss the tense political situation
in Thailand, which became a hot topic in the Swiss media last November.
And then it was time to visit the Oriental Bangkok
Hotel. The luxury hotel, which is over 130 years old, is
situated directly on the Chao Phraya River and is
among the best hotels in the world. History, tradition
and luxury combine with first-class service to form a
harmonious whole. The students were provided with
the same first-class service offered to the hotel’s
guests. How to become a learning organization was
explained in details by the hotel manager. The guiding
principles and values of the Oriental, indicating how
diverse the training concept is in order to allow these
principles and values to actually be implemented day to
day. Among others these included the acronym “DELIGHT,” which stands for distinctive,
exotic, lively, imaginative, guest-centered, harmonious, and time-giving. Along with classical
vocational training, special attention is paid here to team-building and intercultural skills, and
these are reinforced through a wide range of theoretical and practical instruction and
workshops.
The Thai buffet at Sala Rim Nam was also DELIGHTful. Thanks to some good tips from the
cooking staff at the Oriental, the participants were able to get acquainted with a few new
dishes. And there also remained enough time for the students to reflect on the past week
during afternoon tea in the rattan chairs at the Authors’ Wing, a colonial-style lounge, or with
a beer on The Riverside Terrace.
“Welcome aboard” was the motto that
same evening with a romantic cruise
down the Chao Phraya River,
Bangkok’s lifeline. During the last group
dinner on the Manohra Dinner Cruise, a
beautifully restored rice barque, the
students were once again able to
sample the delicacies of Thai cuisine,
while also enjoying a breathtaking view.
It was a successful way to conclude an
extraordinary day.
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The remaining hours of the course were held by Dr. Tang Zhimin, a specialist in economics,
marketing and international business. He documented The Chinese Economy: The Changing
Picture with various video clips of businesses and people, and explained how a “copy
culture” is transforming into an “innovation culture.” Not “made in China,” but rather “created
in China” – a central topic in China. At the end of the session, there was a lively discussion of
topics ranging from the Olympic Games to human rights.
Then the time had come for the last moments together at the Central Park Hotel and the
presentation of the certificates by Dr. Montri Chulavatnatol – a very special moment for those
who had completed the course. And the international buffet that followed at the Cafe at the
Park, with students and instructors from six different countries, perfectly symbolized the
theme of the entire course of studies: East meets West.
CMMU truly presented an intensive, enduring,
diverse and perfectly organized week with many
contrasts and new discoveries. It was the perfect
combination of theory, practice, culture and fun,
along with dedicated and skilled instructors, who
always responded to the many questions and
concerns of the students and left scarcely
anything to be desired.
The ‘Farangs’ bid farewell with a greater
understanding of the cultural differences, taking
with them many unforgettable experiences, the
documentation they needed for their careers, and with the words of Dr. Astrid Kainzbauer –
“Treat the others the way they want to be treated or at least be aware of what that is” –
ringing in their ears. They all agreed – it was a very special kind of course!
By Stephanie Arnold, Master of Advanced Studies SMM 2008, Participant of the Summer School Lucerne.
List of references:
Asian Management: Executive Seminar 2008 August 20 – 17, 2008, Collage of Management Mahidol University Bangkok, Thailand
www.cmmu.mahidol.ac.th
www.hslu.ch/wirtschaft/w-outside-navigation/ibr/w-ibr-weiterbildung/w-ibr-summerschool.htm
www.nestle.co.th/
www.centralpattana.com/
www.centralworld.co.th/
www.bathroomtomorrow.com
www.mandarinoriental.com/Bangkok
www.geert-hofstede.com
http://en.wikipedia.org/wiki/Geert_Hofstede
www.gemconsortium.org
DUMONT Richtig Reisen Thailand von Renate Loose, 3. März 2008
Pictures: www.flickr.com, pictures from participants
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