4 FINDINGS
4.2 Source 2 data – Semi-structured interview -Analysis of
4.2.3 Capabilities Identified
The interviewees were asked what kind of skills and capabilities are required for the host business environment. All of the ten interviewees identified and shared their thoughts on different skills that are crucial in the host country environment.
4.2.3.1 Relationship capabilities Capabilities to establish relationship
The relationship with the host country people is one aspect that emerged from the interview data. Four out of ten interviewees pointed out the importance of developing and establishing relationships with the people from the host country environment. A positive relationship has been pointed out as a way to develop and explore the business opportunities in the host country. Without having a good relationship with the host country people, businesses cannot be managed, according to the interviewees. For instance, getting acquainted with a person from host country and by understanding the basics, such as the origin of the person and his own culture and relating the person with his culture is one of the ways to develop relationships. Knowing history through interaction with the host country people, is one of the ways to develop the relationship. Likewise, establishing relationships with host country colleagues/partners by having a chit-chat with family, has also been mentioned as one way to develop a relationship.
This was commented on by one interviewee, who said as below;
We are normally having a chit-chat about the chat -- talking with family, wife, kid, how it's going and so forth in order to establish some kind of relationship.
(Inter-10)
For home country business leaders who are new to the host environment, it is essential to find a reliable partner. When there is a reliable partner things go smoother. However, to identify the reliable partner and gain trust with that partner, requires capabilities to develop the relationship.
Being a foreign company there is lot of dependency with the local people. In case of the home country it is not required to have such kind of relationship with the home country employees. Whereas, it was stressed by the interviewees that as a foreign company it is important to create trust with the host country employees.
Therefore, spending more time with host country colleagues and understanding each other creates good rapport, which was said as below;
I think that we've always tried to have this kind of personal contact with the people, because I think that's very important when you have these kind of foreign companies that you get to learn the people there in the important key positions, because we are very dependent on them in the long run there.
(Inter-20)
By being close with the people from the host country a good relationship is established that would be highly beneficial for developing the business. Also
through a good relationship the understanding between each other’s culture happens.
Relationship skills with the host country people
The importance of establishing good relationships in the host country is very well pointed out by the three interviewees. Especially when the home organization is not big, then it is important to develop different contacts and networks in the host country. This is not limited to only small organizations; it is also equally important for the bigger organizations as well to develop effective relationships.
Many of the businesses from the home country, need high level connections in the host environment to be established. There is a requirement to have strong personal relationships with influential people who have the most power to influence different stakeholders.
Having a cordial relationship with a local person benefits the home country business a lot in the host environment. Being a foreigner, it takes a lot of time to create trust and develop the business in the host environment. Whereas, hiring a local person as the CEO in the host country, things fell into place according to the interviewees. The reason for hiring the local person is to let him think and do on his own way according to the home country norms. The interview pointed out, as follows;
You have to be at very good personal relationships to Indian persons because you can't manage the Indian environment, and if you are working there, for
example, establishing company there, your way of doing -- you have relationships for people who you trust and you hire those to be CEO (inter-13) Local people can give a wide range of information about their own country, differences within their culture, regional differences etc. Therefore, listening and accepting what the local people say, even though not agreeing, is the only way to get through in business which was said, as commented;
But sometimes if we're from Finland, a small country, we have to listen to the local people and we have accept what they say, although we're not agreeing
with them, because that's usually their only way to get through in business.
(Inter-20)
Local people are the ones who can give information that are important for the specific context. Therefore, the relationship with the local people was emphasized with the above interviewees.
4.2.3.2 Adaptation Skills Behavioral adaptability
The behavioral adaptability in the host country was mentioned by three of the interviewees. For instance, this female interviewee said that she has to adapt her behaviour based on the situation as follows;
In Finland I would be more quiet and I could say that okay, now I am a little bit tired. But in India you need to be more social and have discussion about things,
and that kind of things you just need to be – (Inter-02)
In the home culture it is acceptable to be straight forward in the communication.
Whereas, in the host culture being straight forward may end up losing the relationship with the people. This was commented as follows;
Culture in Finland that we are very straightforward and then you don't gain friends being too straightforward and getting upset and saying bad words to
people. (Inter-06)
The communication has to be modified in the host country as people in the host country expect more detailed communication. This interviewee compared the communication and the communicational differences explained the importance of understanding and adapting, as follows;
I need to structure the discussion, again, more open questions instead of yes or no. And well, verify that we have understood, then of course, it's the same way
in, let's say, a western culture, but just unfortunately a different manner.
(Inter-18)
From all of the interviewees quotes above, it can be assumed that adapting to the host country culture, communication, people etc., is crucial. By having the skills to adapt to different circumstances and environments, people in the host country can create acquaintances with the host country people. Moreover, building trust can also happen, by staying curious and adapting to the host country cultural norms etc. Therefore, behavioral adaptability is one of the crucial skills that is essential in the host county environment.
Quick adaptation capabilities
Two of the interviewees mentioned about quick adaptation capabilities in the host country environment. It was mentioned that in the host country, the home country business people face several uncertain situations. In the home country, the uncertain situations are limited according to one interviewee. In these
situations, it is important for the host people to possess skills to deal with the ambiguity in the host environment. To face this uncertainty, quick reaction and quick adaptation capabilities are considered to be necessary. Besides, due to ambiguous situations, one can get into huge stress and this requires stress handling skills which was emphasized by the interviewee as follows;
Once you understand, there point is quick adaptation and quick reaction capabilities. You have to have the reaction even if you try to avoid with the reactive way of doing, you have to have that level very high. Then you have to
have a very good stress level for unexpected changes and constantly changing like things. (Inter-13)
The transparency, honesty, respect for people, sense of appreciation, expression of interest are the universal attributes irrespective of different cultures and countries. However, one has to be prepared to adapt in any country. For instance, the following was brought out by one interviewee;
I've traveled across at least 40 countries, Greenland being the only continent I've never been to and so forth, I was first trying to see how do I need to adapt.
Then I said, well, that may be a bit challenging. So I decided that I've to drive my behavior from my values, who I truly am. And if that means I'm honest, I'm
transparent, (Inter-18)
According to the above interviewee, good virtues in whom you are and thinking about others, will connect with others. The interview also mentioned about expressing one’s values to others by understanding others values. Furthermore, good virtue is considered as important part in building connection with people in the host environment.
4.2.3.3 Cross-cultural skills
The skills to understand the culture of the host country was mentioned by four interviewees. The host country is deeply rooted in its culture therefore it is crucial to understand the culture and its impact on business. Besides, it was also emphasized the skills to understand in-depth about history and important events that took place in the host country. Religion plays a major role in the host society, it is imperative to understand the difference between different faiths that exist.
The skills to understand the complexity of religion has been highlighted by this interviewee. Therefore, cross-cultural understanding is needed to understand this complexity. The diverse culture of the host environment, makes it complex in addition to having a wide cultural distance. Therefore, cross-cultural skill is an
important skill which was evident from the quote from this interviewee who said as below;
It's really about the kind of a cross cultural understanding, it's about understanding the country's history, whatever you would know by heart if you
would be Indian. (Inter-04)
The in-depth understanding of cultural things and artifacts will enable understanding of the underlying assumption or reasons behind each cultural fact.
For this reason, this interviewee emphasized that cultural understanding helps to understand the behavior of the people in the host country. Likewise, the understanding of the host culture and the driving forces behind that culture was emphasized by an interviewee as below:
I think, of course, you have to understand the culture and you have to understand what things are driving there. (Inter-06)
Besides, the culture and behavioral aspects being, sincere and honest is emphasized by an interviewee, as follows;
Know the culture, know the do's and don'ts, be a very, how to say -- of course, cultural-sensitive. But above all, sincere, honest, (Inter-10)
The do’s and don’ts of a culture is information that can be very beneficial to avoid confrontations in the host environment. However, sincere and honesty is even more significant, no matter in which country one is going to do business. Being sincere and honest is an essential attribute to win the trust of the people irrespective of the culture. People in the host environment may get acquaintance with the honest and sincere person and one can understand the host culture more efficiently.
4.2.3.4 Experience
The importance of experience in the host country was mentioned by four out of ten interviewees. Learning by experience in the host country has been pointed out by three interviewees. Gaining hands-on experience was highly recommended by majority of interviewees. The opinion is that through experience one can feel and see the real situations in the host country. For instance, one of the interviewees also mentioned the importance of experience as follows;
But I have found out that the problem is that we -- it's difficult to do business in India from Finland. You should really be more there, that’s the case. (Inter-01) The cross-cultural interaction with people in the host culture requires learning about customs and habits of the host culture. Therefore, learning through experience and by not only travelling but also gathering information is also equally important. The personal experience of one interviewee was shared, as below;
I already know quite many things, but just through experience I have, yes. I have listened some persons who have visited there and make business there and I have discussed with them. But I have to say I didn't have so many experiences,
so I have just learned. (Inter-02)
Travel experience across different parts of the host country will give an overall understanding about the host business environment. For example, traveling, advance sightseeing, tasting the local food and understanding the host environment makes you understand the part of culture. Personal experience by traveling and living is an important factor in learning about host country.
Besides, physical presence, experiencing the interaction with the host country person enables an individual to understand people’s behavior. This is explained below:
You need to get the feeling for the persons meaning that, okay, you can only learn about or try to learn how they are behaving by reading about cultures,
countries, religion and so forth, and how they are normally conducting business. But it is not until you are sitting in front of them and discussing when
you know that how they are going to behave. (Inter-10)
The lack of experience in the host country, can be a huge challenge however living in the host environment enables the person to learn more about the host culture.
4.2.3.5 Paternalistic skills
There is a huge hierarchy in the host work environment and leaders are seen as a father like character, in the family who takes care every member. Therefore, there is a need to exhibit paternalistic skills to take care of the host country employees.
For instance, one interviewee mentioned the importance of paternalistic skills as the host country people, stands for their people and protect them, and this was said as follows;
If you gain trust with the Indian people, they take down the moon for you. They know that if something goes wrong, they will not be burst on the -- no one will
tell them personally that we made mistake. The manager is taking the responsibility and he stands up for all his people (Inter-06)
Trust is important thing to have a sustainable relationship in the host environment. Trust facilitates people to work together with host people.
Therefore, winning the trust of the people in the host environment, is an important skill that can be gained by showing paternalistic behavior.
4.2.3.6 Other skills
Interaction skills and knowledge about how to interact, is one of the skills that was also emphasized by the interviewees. In the home country, people value short conversations whereas, in the host country there is a need to have longer conversations. People in the host country are used to having longer conversations with people whom they meet, as they would like to know the person and his background. In the host country interaction skills play a greater role from getting introduced to negotiation. To have a better interaction skill, social skills and awareness are critical and have been pointed by the interviewees.
It was also mentioned by an interviewee, that the host country work environment is bureaucratic in nature. Therefore, the skills to handle bureaucracy were also highlighted. Furthermore, the importance of analytical skills was also emphasized. The activities that take place in home environment may have to be done completely different in the host country. Also within the host country, there is so a big variation in doing things. Therefore, several skills are important for the business leaders from the home country in order to work in the host business environment.
4.2.4 View of factors such as motivation, cultural knowledge and