Introduction
The increasing convergence of global businesses across geographies has made human capital and service exchanges commonplace. By moving across physical and virtual (i.e. web) boundaries, cross-cultural encounters become increasingly a necessary requirement for effective work experiences locally and globally. This emphasis on cross-cultural competence in current business ecosystem is made more necessary in financial service industry. Indeed, of all cross-border services, financial activities are probably one most sensitive to global influence. Notably, by exchanging services via banking-based and non-banking financial systems, influence of not only provided services but also of people offering such services is well embedded in day-to-day and strategic operations. For current purposes, deploying a Muslim, female, Lebanese manager at Clever Clogs International in Amsterdam is a case in point. If anything, fundamental differences between expatriate's native culture (of Lebanon) and destination culture (Amsterdam) are apt to make her expatriation experience difficult. Instead, by offering properly immersive cross-cultural development, expatriate in question would be able to deliver on requirements in and out of workplace more effectively. Accordingly, an in-depth analysis of both cultures, based on appropriate theory, is required. Building on cultural analysis, insights are driven for more rewarding expatriation experience. This report aims, hence, to offer macro and micro analysis of destination (Amsterdam) and home (Lebanon) expatriation cultures for a Muslim, female, Lebanese manager selected for a first international assignment by Clever Clogs International.
This report is made up of five sections in addition to introduction: (1) The Netherlands: Macro Analytic Overview, (2) The Netherlands & Lebanon: Hofstede Cultural Dimensions in Context, (3) Hofstede's Framework: A Critique, (4) Expats: Challenges and (5) Conclusion. The Netherlands: Macro Analytic Overview section offers a broad, analytical and cultural discussion of The Netherlands. The Netherlands & Lebanon: Hofstede Cultural Dimensions in Context section offers comparison between both cultures based on Hofstede's Six-Dimension Model and broad cultural patterns in both countries. The Hofstede's Framework: A Critique section is a practical, critical examination of Hofstede's Model as pertains to daily management practices for an expatriate. The Expats: Challenges section offers practical advice and recommendations based on challenges an expatriate faces in her international assignment. The Conclusion section wraps up argument and offers deeper insights and reflections on broader implications of current case.
The Netherlands: Macro Analytic Overview
The Netherlands is a comparatively small West European country located between Belgium and Germany ("Europe: Netherlands," n.d.). The Netherlands has a free-market economic model and has a highly concentrated financial sector with only four commercial banks controlling 90% of country's assets ("Europe: Netherlands"). Further, country's major economic activities include, most notably, agriculture, food processing, oil refining and chemicals ("Europe: Netherlands"). Given country's extensive dependency on banking system for funding economic activities, The Netherlands has been hit hard during 2007-2009 financial crisis and has had to implement a broad range of financial stimulus plans to help boost economic recovery ("Europe: Netherlands"). These recent developments are of particular relevance in current case. Specifically, by experiencing similar financial crises (being heavily dependent on banking sector, as is shown later), Lebanese expatriate in question shares common professional experiences in a similar, financial industry, an asset which should help her cope in destination culture, at least at a professional level.
The Netherlands is a diverse country. Having populations of Dutch, Frisian, Indonesian, Surinamese, Turkish and Moroccan origins, The Netherlands enjoys both ethnic and linguistic diversity ("The Netherlands," n.d.). This diversity is, in fact, interpreted into many different ways in how "local" populations of all ethnic and linguistic origins interact with foreigners, including expatriates. Given a long history of tolerance toward political and religious asylum seekers, The Netherlands has no specific attachment to a particular, overarching national identity compared to other cultures ("The Netherlands"). Indeed, The Netherlands has few symbols of national unity – including, most notably, The Queen, Nazi occupation during WWII and international sports events, particularly soccer ("The Netherlands") – a notable characteristic which has made The Netherlands one of world's most diverse and, more significantly, tolerant nations.
According to Hofstede's Six-Dimension Model, The Netherlands scores high on Individualism and Long Term Orientation dimensions and low on Power Distance and Masculinity dimensions ("What about the Netherlands?" n.d.). The Individualism Dimension is about interdependence between community members. Given country's high score, The Netherlands is a highly independent, individualistic culture emphasizing an individual's merit (over her relationships in one or more in-groups). The assigned expatriate in current case, should, accordingly, pay heed to meritocracy as a primary criterion for corporate climbing and maintaining workplace relationships as opposed to her native culture, a contrast discussed in further details in next section.
The Long Term Orientation Dimension is about approaching change by maintaining customs and conventions or acting pragmatically to developing, new situations ("What about the Netherlands?"). By scoring high on Long Term Orientation Dimension, The Netherlands is a pragmatic culture accepting change and new challenges.
The Power Distance Dimension is about how power is deployed (hierarchically or equally) among community members. Having a low score on Power Distance Dimension, The Netherlands is a largely egalitarian culture emphasizing equal rights, accessibility to superiors and, not least, views management as empowering and facilitating as opposed to being controlling ("What about the Netherlands?").
The Masculinity Dimension is about motivation for success and achievement of whether being of competition or harmony ("What about the Netherlands?"). By scoring low on Masculinity Dimension, The Netherlands is a feminine society (in a cultural sense) emphasizing collaboration and caring over completion and winning ("What about the Netherlands?"). For current purposes, promoting collaboration and harmony in peer-to-peer and peer-to-management relations suggests a more reconciliatory approach to managing relations, particularly during periods of conflict, as opposed to confrontational management styles.
Overall, The Netherlands is a decidedly diverse, highly egalitarian and receptive culture. Given to tolerance for centuries, ethnic, cultural, linguistic and faith differences are not likely to pose challenges for assigned expatriate who, as shown in next section, hails from a culture at stark contrast to destination one in many respects.
The Netherlands & Lebanon: Hofstede Cultural Dimensions in Context
In contrast, Lebanon is a Middle East, coastal country situated in what is now a war-torn zone region ("Middle East: Lebanon," n.d.). Geographically, Lebanon has no formal international boundaries and is marked by sectarian violence, Christian population (amid decidedly surrounding Muslim majority countries) and, significantly, concentration of economic activities in financial and hospitality services ("Middle East: Lebanon"). Arabs constitute 95% of country's population and hence absence of clear ethnic diversity, compared to The Netherlands ("Middle East: Lebanon"). In contrast, Lebanon has faith diversity and hence sectarian violence. Similar to The Netherlands, Lebanon has a free market economy and, like The Netherlands, has been hit hard by 2007-2009 financial crisis ("Middle East: Lebanon"). As well, similar to The Netherlands, Lebanon is much dependent on her banking system for her economic needs.
On Hofstede's Six-Dimension Model, Lebanon scores high on Power Distance, low on Individualism, high in Masculinity and low on Long Term Orientation. These scores emphasize, if anything, a sharp contrast between both cultures on basic cultural dimensions most relevant to current international assignment case. In comparison, The Netherlands and Lebanon are at extreme ends from a corporate management perspective. For a Muslim, female, Lebanese manager working in Amsterdam, power relations should be re-negotiated for superiors and subordinates, independence should be further emphasized in decision-making processes and performing routine and non-routine functions, more egalitarianism should be considered (in order to balance out expatriate's native culture's high score on Masculinity and, not least, further pragmatism in order to cope with destination culture's normative approach to established conventions. The contrast between both cultures is illustrated in Fig. 1 and Fig. 2 shown below.
Figure. 1. Lebanon on Hofstede Figure. 2. Netherlands on Hofstede
Hofstede's Framework: A Critique
Hofstede's Six-Dimension Model offers valuable insights into cultural patterns in different countries. As shown above, discussed dimensions for The Netherlands and Lebanon highlight fundamental differences in both cultures. The model has, of course, critical limitations, particularly for current case under examination.
Notably, selected manager is a Muslim female. This aspect of her cultural makeup is not accounted for in Hofstede's Model. Specifically, in interacting with her co-workers, manager in question can face specific challenges in socialization during and after working hours. Given manager's native culture's emphasis on conventions and collectivism, interacting effectively in a corporate culture – and, for that matter, a broader community culture – emphasizing openness (and, not least, drinking alcohol and consuming cannabis and drug openly – and legally) can be a uphill effort.
There are also questions about support systems. That is, if expatriates usually look for professional and social support systems in order to survive in a new culture (as is discussed in further detail shortly), one finds no mention of whether expatriate manager in question is accompanied by her spouse, if any, or not. This is a particularly legitimate question unaccounted for in Hofstede's Model. In either case (should manager in question have a spouse), accommodating partner needs in an expatriation context is not only necessary in order to achieve a work-life balance but also, more significantly, to offer a support system (particularly for a female hailing from a culture venerating norms and collectivism.
Expats: Challenge
Expatriation experience is challenging, particularly for expatriates posted in cultural contexts in sharp contrast to original cultures. This experience is, interestingly enough, very common as has made broad generalizations rampant. Notably, expatriates are usually lumped together as a group of well-shielded (and, for that matter, well paid) individuals in isolated bubbles when, in fact, expatriation experience is much more complex and layered (van Bochove & Engberse, 2013). That is, in lieu of a single-dimension (and stereotyping) view of expatriates, expatriates can be viewed as corporate executives in an economic context, moderate cosmopolitans in a political context and aspiring locals (particularly when destination culture enjoys a superior image in original culture) in a sociocultural context (van Bochove & Engberse).
Accordingly, a formal cross-cultural development is apt to mitigate, if not minimize, a potentially unsettling expatriation experience. This does not, of course, exclude personal efforts (recommended by cross-cultural corporate instructors) expatriates need to make in order to survive. These include more engagement in corporate and social life (by actively interacting with locals), learning social and cultural habits of expatriation destination and, not least, developing one's professional and personal support systems in and out of workplace (Roberts, 2015). These efforts, only complementing more formal and rigorous cross-cultural development, should help make expatriation experience less demanding, professionally and personally.
Conclusion
References
Europe: Netherlands. (n.d.) The World Fact Book. Retrieved from https://www.cia.gov/library/publications/the-world-factbook/geos/nl.html
Lebanon [Online image]. (n.d.). Retrieved March 29, 2016 from http://geert-hofstede.com/lebanon.html
Middle East: Lebanon. (n.d.). The World Fact Book. Retrieved from https://www.cia.gov/library/publications/the-world-factbook/geos/le.html
Netherlands [Online image]. (n.d.). Retrieved March 29, 2016 from http://geert-hofstede.com/netherlands.html
Roberts, E. (2015, September 2). Expat problems: how to cope with the biggest ones. The Telegraph. Retrieved from http://www.telegraph.co.uk/
The Netherlands. (n.d.). Every Culture. Retrieved from http://www.everyculture.com/Ma-Ni/The-Netherlands.html
van Bochove, M., & Engbersen, G. (2013). Beyond Cosmopolitanism and Expat Bubbles: Challenging Dominant Representations of Knowledge Workers and Trailing Spouses. Population, Space and Place, 21(4), 295–309. Wiley Online Library. doi: 10.1002/psp.1839
What about Lebanon? (n.d.). The Hofstede Center. Retrieved from http://geert-hofstede.com/lebanon.html
What about the Netherlands? (n.d.). The Hofstede Center. Retrieved from http://geert-hofstede.com/netherlands.html
