Internationalization of Businesses and the Key Role of the Behavioral Approach: A Journey into Interculturality
The current global economic landscape is characterized by globalization, a phenomenon that has made the business world more interconnected than ever before. Companies, both large and small, constantly find themselves navigating a sea of opportunities and challenges that, even when experienced from their own offices, become international in scope.
Uber Eats has revolutionized the restaurant delivery system everywhere, much like how Uber completely transformed the taxi industry. While sitting behind the wheel of their vehicles, entrepreneurs were about to be swept away by the idea of a visionary entrepreneur located thousands of miles away.
In this context, the behavioral approach becomes crucial for the modern entrepreneur. The most valuable asset for your business is you, with your thoughts, your story, and your behavior. There are no difficult or exceptional periods; there are individuals facing the inevitable changes of each historical period.
In this article, we will explore how the internationalization of businesses and an open mindset towards interculturality are closely linked, offering an enlightening perspective for entrepreneurs in an increasingly globalized world.
To fully grasp the significance of the behavioral approach in business internationalization, we must first analyze the global context in which companies operate. Globalization has made the world a smaller place by breaking down geographical barriers and allowing businesses to expand beyond national borders. This has led to an unprecedented acceleration of international trade, the flow of information, and the movement of human resources.
Moreover, globalization has penetrated every single office workspace of every existing company worldwide.
In the context of this globalization, multinational corporations play a central role. They operate in various countries, dealing with complexity that goes beyond merely managing international operations. The global business environment is dynamic and ever-changing, with diversified markets, complex regulations, and diverse corporate cultures. At the same time, even small and medium-sized enterprises have become multinational in their own way, facing daily challenges despite their primarily local customer base.
The goal of business internationalization is to expand market opportunities, diversify risk, and increase profitability. However, this process poses a series of challenges, not only of a practical nature but also behavioral. This is where the behavioral approach comes into play.
The behavioral approach is based on the idea that human behavior is influenced by psychological, social, and cultural factors. In an international environment, this approach becomes crucial as businesses must interact with individuals and cultures that are different from their own.
This is the point where most individuals naturally falter. Every CEO and management believes that their approach is the correct one and that unusual interactions are deeply wrong. It’s not just about understanding how to greet the CEO of a Japanese company before a meeting. This situation is clear to everyone, visible, and impossible to ignore. But what happens when Toyota enters the USA, and thousands of employees are losing their jobs at General Motors?”
An entrepreneur navigating both the international and national contexts must develop a set of key behavioral competencies:
Cognitive Flexibility: The ability to adapt and understand diverse perspectives is crucial. Entrepreneurs must be willing to challenge their own beliefs and consider alternative approaches. They must also recognize that there is no absolute right or wrong, no good or bad.
Cultural Empathy: Understanding and appreciating cultural differences is essential for establishing strong relationships with international customers, partners, and employees. Cultural empathy helps prevent misunderstandings and conflicts. The question every entrepreneur can, and in my opinion should, ask is, “What can I learn from these cultural differences?”
Effective Communication: Intercultural communication requires clear and audience-adapted communication. The use of non-verbal language and awareness of cultural nuances are crucial. Studying, learning, and being curious are just some of the necessary elements.
Conflict Management: In an international context, conflicts can arise due to cultural or interest divergences. The ability to manage conflicts constructively is essential for success. Often, the worst conflicts are the ones that are entirely unexpected.
Continuous Learning: The behavioral approach implies an open mindset for constant learning. Entrepreneurs must be willing to explore new ways of doing business, adapting to evolving market conditions. Continuous education is the correct key.
Interculturality is a key concept in the internationalization of businesses. It means embracing and valuing cultural diversity as an opportunity rather than a challenge. Interculturality requires an open mindset, a willingness to learn from other cultures, and integrating these learnings into business strategies.
I learned all of this by establishing businesses in Usa,Italy, Estonia, Singapore, India, and several other countries. I had to learn the differences between conducting a meeting in Cambodia versus Guatemala or how to handle differences of opinion with Mexican entrepreneurs.
A study conducted by Richard M. Steers, Carlos J. Sánchez-Runde, and Luciara Nardon, published in the Journal of International Business Studies, emphasizes the importance of interculturality in human resource management in multinational corporations. The authors highlight how the ability to understand and manage cultural differences is a critical factor for the success of global businesses.
Furthermore, Geert Hofstede’s book “Culture and Organizations” provides a profound analysis of cultural differences in organizations and how they influence organizational behavior. This book offers a solid scientific foundation for understanding interculturality in businesses.
In a continuously evolving American market, the internationalization of businesses is both a challenge and an opportunity. Entrepreneurs who embrace a behavioral approach and an open mindset towards interculturality are destined to lead the way towards global success.
Author: Koan Bogiatto
Koan Bogiatto has explored approximately 123 countries around the world and, after living in Italy, Spain and then in the USA, Florida. He is the only Italian to have received the prestigious Green Card for Extraordinary Achievement and Outstanding Individual from the U.S. Government, in the fields of education and coaching. In the past Koan has served as a consultant for eBay, INA Assitalia, Wind, 21st Century, Alviero Martini, Politecnico di Torino, IUM Monaco, Sai, De’Longhi Group, and Il Sole 24 Ore. “He is the founder of several successful companies in various fields, including coaching, education, real estate, and cryptocurrency trading, to name a few.”
