dessertation keith probert 2005
TRANSCRIPT
Cross-cultural Relationships between
Expatriate Managers and Croatian
Counterparts in a Croatian Working
Environment
Masters Dissertation
Keith Probert
Supervisor: Graham Hollinshead
Sumbission Date: August 2005
University of the West of England, Bristol
Dissertation submitted in partial fulfilment of the requirements for the
Full-Time MBA
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CONFIDENTIALITY STATEMENT
The dissertation may be made freely available for inspection for academic purposes.
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ABSTRACT
This dissertation investigates the cross-cultural relationships between expatriate and
Croatian managers in a Croatian working environment. Semi-structured interviews
were conducted in the Croatian capital Zagreb with expatriate and Croatian
managers. They represented various educational levels, and hierarchical positions
across a variety of sectors.
The managers were asked questions, which were indicative of cross-cultural
complexities and adjustment issues faced by both sets of managers. The collected
qualitative data was first categorised, so as to ease the analysis aiming to gain more
insight into: Barriers to team working; Skill, knowledge and learning; and
Adjustment issues.
The data was analysed to determine if the adjustment process for expatriate and
Croatian managers working in a cross-cultural team follow the U-Curve or J-Curve
patterns of adjustment, and to ascertain whether both sets of managers experience the
four stages of honeymoon, culture shock, adjustment and mastery during their cross-
cultural relationship.
Conclusions made from the results of this study and the literature reviewed suggest
that communication, working practices and management skills were found to impact
the relationship between expatriate and Croatian managers when working in the
Croatian working environment. This study also highlighted that positions held by
expatriate managers were more senior. In contrast to this, all of the Croatian
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managers were younger and were found to be less experienced than their expatriate
counterparts.
This research project has also identified that Croatia has a more eastern than western
orientation, and that Croatians have a desire to embrace western values and are in the
process of adjusting to these. Croatian managers need to develop ‘softer’
management skills and a more proactive approach to business in general. The
expatriate managers need to immerse themselves deeper into the Croatian culture,
recognising and absorbing the local culture.
The findings of this research project demonstrate that managers with previous cross-
cultural experience had less adjustment issues, compared to the less experienced
managers. The managers with greater cross-cultural experience have a good
relationship with their managerial counterparts, their pattern of adjustment follows
the J-Curve pattern of adjustment. In contrast, the less experienced managers were
found to have a less satisfactory relationship with their counterparts and their pattern
of adjustment follows the U-Curve pattern of adjustment.
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GLOSSARY
CEE Central and Eastern Europe
CI Croatian Interpreter
ECG Eaton Consulting Group
EU European Union
FDI Foreign Direct Investment
GDP Gross Domestic Product
HDZ Hrvatska Demokratska Zajednica (Croatian Democratic Union)
HCN Host Country National
HRM Human Resource Management
IHRM International Human Resource Management
IT Information Technology
JCT J-Curve Theory
MNC Multi-National Corporation
MNE Multi-National Enterprises
RD Relative Deprivation
SME Small and Medium size Enterprises
UCT U-Curve Theory
UNCTAD United Nations Conference on Trade and Development
USSR United Soviet Socialist Republic
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TABLE OF CONTENTS
Confidentiality Statement ………………………………………………………i
Abstract ………………………………………………………………………ii
Glossary ………………………………………………………………………iv
Table of Contents ………………………………………………………………v
List of Tables and Figures ………………………………………………………vii
List of Appendices ……………………………………………………………...viii
1. INTRODUCTION ………………………………………………………..1
1.1 Background Information ………………………………………………..1
1.2 Aim and Objectives ………………………………………………………..6
1.3 Content Overview ………………………………………………………..7
2. LITERATURE REVIEW ………………………………………………..9
2.1 Investigation of cross-cultural complexities of expatriate and
Croatian managers working together within the same team ……………….10
2.1.1 Culture……………………………………………………………….10
2.1.2 Education and Language ……………………………………….16
2.1.3 Managerial Competence ……………………………………….19
2.2 Examination of adjustment issues facing both expatriate and
Croatian managers ……………………………………………………….25
2.2.1 Expatriation ……………………………………………………….25
2.2.2 Host Country Nationals ……………………………………….28
2.2.3 International Human Resource Management ……………………….30
2.2.4 Adjustment ……………………………………………………… 33
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2.3 Theoretical Framework – U-Curve Theory and J-Curve Theory ……….39
3. RESEARCH METHODOLOGY ……………………………………….44
3.1 Research Paradigm ……………………………………………………….44
3.2 Sample and Procedure……………………………………………………….48
3.3 Data Collection ……………………………………………………….52
3.4 Data Analysis ……………………………………………………………….57
3.5 Limitation of the Research Method applied ……………………………….57
4. DATA FINDINGS ……………………………………………………….62
4.1 Sample Classification ……………………………………………………….62
4.2 Presentation of interview findings ……………………………………….65
4.2.1 Cross-cultural complexities ……………………………………….66
4.2.2 Adjustment issues ……………………………………………….69
5. ANALYSIS AND DISCUSSION ……………………………………….73
5.1 Cross-cultural complexities ……………………………………………….73
5.2 Adjustment Issues ……………………………………………………….78
5.3 Recommendations ……………………………………………………….83
6. CONCLUSION ……………………………………………………………….87
References ……………………………………………………………………….93
Bibliography ……………………………………………………………………...109
Appendices ………………………………………………………………………...I
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LIST OF TABLES AND FIGURES
Table 2.1 Summary of Croatian versus Western cultural
values, using Hofstede’s four value dimensions ……………….13
Table 2.2 Translation of some key business words from English
into Croatian ……………………………………………………….17
Table 2.3 Best Practice Initiatives for global organisations ……………….26
Table 3.1 Key measures to overcome bias in qualitative interviews ……….47
Table 3.2 Semi-structured interview questions ……………………………….50
Table 4.1 Biodata of Expatriate interviewees ……………………………….62
Table 4.2 Biodata of Croatian interviewees ……………………………….62
Table 4.3 Summary of findings ……………………………………………….71
Figure 2.1 Influence of different identities on the effectiveness of an
international Manager ……………………………………………….24
Figure 2.2 Thematic model of core problems and core solutions in
cross-cultural management literature ……………………………….38
Figure 2.3 The U-Curve of Adjustment ……………………………………….41
Figure 2.4 The J-Curve of Change ……………………………………….42
Figure 3.1 Suitable foreign businesses in Croatia for Research purposes ……...53
Figure 3.2 Suitable Managers for Research Interviews ……………………….54
Figure 4.1 Gender of Expatriate managers interviewed ……………………….63
Figure 4.2 Gender of Croatian managers interviewed ……………………….63
Figure 4.3 Age of expatriate managers interviewed ……………………….64
Figure 4.4 Age of Croatian managers interviewed ……………………….64
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LIST OF APPENDICES
Appendix A Argyle’s Skills Model ………………………………………..I
Appendix B Competencies for managing internationally ……………….II
Appendix C Ashridge Management College Survey
Most valued characteristics of international management …III
Appendix D Specific problems and research approaches that must be
addressed when conducting qualitative research in
Eastern Europe ………………………………………IV
Appendix E Transcript of an interview held with a Croatian manager …..V
Appendix F Dissertation Proposal ………………………………………IX
1
1 INTRODUCTION
1.1 Background Information
Croatia is a new nation-state, a former republic of Yugoslavia, with 4.5 million
inhabitants. During 1991-92, when it fought for its independence against Serbia it is
estimated that around 30% of the fixed assets in Croatia were damaged or destroyed
(Radošević, 1994). The war did not end until 1995, when the Croatian army retook
western Slavonija and the central Croatian region of Krajina, which had been
occupied by the Serbian-dominated Yugoslavian army (Infoline, online).
Croatia’s transition was initially led by Franjo Tuđjman’s Croatian Democratic
Union (HDZ) party, after free elections in 1990. The Croatians had been alienated
by Tuđjman’s authoritarian rule, out of touch nationalism and disastrous handling of
the war-shattered economy. In 1999, new elections brought about a reformist centre-
left coalition government, led by Ivica Račan. The 2003 elections brought a right-
wing coalition, led by the HDZ party, to power. The new Prime Minister, Ivo
Sanader, claims that his party is now far less nationalist and far more moderate than
in its earlier incarnation under Tuđjman (Infoline, online).
Owing to the collapse of the Eastern markets and the break-up of the former
Yugoslav market, Croatian companies have found themselves facing radically
reduced demand. The value of the exports lost amounted to 50% of Gross Domestic
Product (GDP). Goods exported to ‘socialist markets’ could not be simply redirected
to the European Union (EU) market, the closest and the biggest market for Croatian
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companies. This mirrors the experiences of other East European economies,
particularly Hungary and the Czech and Slovak Republics.
Croatia, like all the other former socialist economies, has inherited an industrial
structure dominated by big companies and with a significant lack of small companies
(Radošević, 1994). These companies were inert, bureaucratic and overstaffed, and
their strategy and competitive profile were undefined. Croatia experienced large
growth in unemployment, which is currently running at 13.8%, as a result of lay-offs
and bankruptcies.
Since the collapse of Communism in the Central and Eastern European (CEE) states,
there was a significant growth of Foreign Direct Investment (FDI) in these
transitional economies with a tenfold increase in FDI between 1990 and 1995
(United Nations Conference on Trade and Development (UNCTAD), 1996). Much
of this increase reflected a significant eastward flow of western European business
activity (Scullion and Brewster, 2001).
Croatia is pursuing a programme of economic adjustment and reform, transforming
its economy into one based fully on market principles. The aims are to accelerate
economic growth, privatisation, public enterprise restructuring and the rehabilitation
of banks; comprehensive reconstruction of war-torn areas; fight unemployment while
maintaining low inflation and a stable exchange rate; and to continue to develop the
legal and institutional framework. Croatia is strengthening institutional relations
with the EU and free trade ties with countries in Central and Eastern Europe
(International Trade Centre, online).
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In 2003 Croatia formally submitted its application to join the EU. The application
was accepted and it is anticipated that Croatia will join in 2007. As a consequence,
in recent years Croatia has benefited from increased FDI. According to the
UNCTAD (UNCTAD, online) a substantial increase in FDI flows to Croatia took
place in the late 1990’s, rising by about 30% per year on average since 1997, they
reached US$ 1.5 billion. This makes Croatia the sixth largest FDI recipient in CEE.
Austria, Germany and the United States are Croatia’s main investment partners,
accounting for about two-thirds of FDI.
The advantages of Croatia’s geographic location, the abundant natural and human
resources and a business tradition of long standing, make Croatia the ideal business
partner for the future (Nekretnine, online). After the dissolution of the communist
system and the introduction of political pluralism, Croatia is presently designing a
legal system, which will help steer her towards a market economy.
Multi National Corporations (MNCs) are also responding to the faster changes within
the modern global environment, by updating their International Human Resource
Management (IHRM) policies and procedures at an ever-faster rate. The majority of
European firms rely heavily on expatriates to run and control overseas operations
(Scullion, 1994). There has been a growth in expatriation between developed
countries in Europe (Brewster and Scullion, 1997) and new expatriate managers will
be interacting with Host Country Nationals (HCNs) of Croatia. This provides a test
bed for ideas about cross-cultural relationships between expatriates and HCNs, many
of whom were employed, not by wholly owned subsidiaries of the parent companies,
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but by international joint ventures or some other form of international alliance (Child
and Czegledy, 1996).
Organisations investing in or responding to change within other countries normally
place their own personnel within these host countries. The personnel are invariably
middle managers with a lot of knowledge and experience of the organisation, which
has sent them. Some of these personnel, or expatriates, have worked in other
countries before these assignments. Others may find themselves on an assignment
for the first time. One thing, which they will have in common, is that they will have
to interact with local nationals within organisations of the host countries.
For businesses sending managers on these types of assignments, there is both, an
investment and a risk. To send an employee overseas involves cost in terms of
money and time. The majority of expatriates will have families with children; they
will expect to be compensated for this. They will also need time to move, find
accommodation, schooling and settle into their new environment.
Many international organisations increasingly treat the European market as a single
entity and seek to integrate production, marketing, and human resource strategies at
the European regional level. A good example of this is Ford Europe who move
expatriate managers freely around their European operations (Scullion and Brewster,
2001).
The author, a British National, has spent time living in Germany, the Netherlands
and the USA, so has experience being an expatriate. Five years were spent in
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Germany whilst serving in the armed forces. During this time, cross-cultural
experiences were made whilst mixing with the local population, experiencing their
differing values and traditions. In the Netherlands, he set up a pilot centre for an
international franchise organisation and then spent several years expanding the
franchise network throughout the Benelux countries. This involved employing and
working with local managers, becoming familiar with a diverse cultural environment
and its challenges. The secondment to the Netherlands was made easier because of
the previous time spent in Germany, having reflected upon national and cultural
differences and being aware of potential challenges which may present themselves.
Time was also spent working in the USA as a consultant for the same franchise
organisation.
Many leisure trips were made to Croatia over many years. The author is married to a
Croatian national, with the wedding taking place Croatia. Having lived and worked
in Germany, the Netherlands and the USA, coupled with the affiliation with the
Croatian culture, this has generated a large amount of interest in the area of cross-
cultural diversity at both, a personal and a professional level.
The purpose of this investigation is to understand the dynamics of foreign and local
manager relationships. Once identified, the findings will be used to identify areas for
potential roles of employment within Croatia, depending on relocation. Issues of
expatriate adjustment have also been studied in the different context of expatriation
in Europe. The opening of the CEE markets has greatly increased business
interaction between Eastern and Western Europe. However, research suggests that
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CEE markets, partly because of the unstable business environment, may have several
characteristics that prove difficult for western expatriates (Villinger, 1996).
1.2 Aim and Objectives
The aim of this study is to investigate cross-cultural relationships between expatriate
managers and Croatian managers in a Croatian working environment, and to gain an
insight into cultural differences.
The main objectives of this dissertation are:
1 To investigate cross-cultural complexities of expatriate and Croatian
managers working together within the same team.
2 To examine adjustment issues facing both expatriate and Croatian managers.
The subsidiary themes listed below will be used to explore cross-cultural theory as it
relates to these two objectives.
1 Culture
2 Education and Language
3 Expatriation
4 Host Country Nationals (HCNs)
5 Managerial Competence
6 International Human Resource Management (IHRM)
7 Adjustment
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Local and expatriate ways of communicating, work practices, skills and knowledge
will be examined. In addition the interaction between local and expatriate managers
in the working environment will be explored. Consideration will be given to how
effective communication between the managers is, and the approach of each manager
to their counterpart. Barriers affecting communication and learning may be exposed
in this study. Any emerging synergies will be highlighted.
From an organisational point of view, the research could provide a basis for the
smooth running of daily business, and may also provide an insight into the different
working practices, allowing companies to use the lessons learnt from this study and
to incorporate these lessons when addressing similar ventures in the future.
1.3 Content Overview
This dissertation is divided into the following chapters:
Chapter 2 reviews the available literature on factors affecting cross-cultural
relationships of expatriate and Croatian managers in a Croatian working
environment. It reviews the following areas: Culture, Education and Language,
Expatriation, HCNs, Managerial Competence, IHRM and Adjustment. It culminates
in the proposed framework, drawing on Black and Mendenhall’s (1991) U-Curve
Theory.
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Chapter 3 describes the research methodology, including sample and procedure,
preparation of the questionnaire used, and what particular methods and techniques
were employed to collect and analyse primary data. Limitations of the study that
might affect the generalisation of the results are also stated.
Chapter 4 presents the data findings and the results of the survey regarding the
research questions.
Chapter 5 analyses and discusses the research findings and provides a critical review
of the research and of the research questions and the validity of their design. In
addition, recommendations are made.
Chapter 6 summarises the main areas of the research, highlights any important areas
of the study for those involved in cross-cultural relationships, and reflects on the
research project as a whole.
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2 LITERATURE REVIEW
The literature review draws on theory from areas of cross-cultural complexity and
adjustment issues. The subject matter can be viewed and analysed from these two
aspects, all of which are contributing factors to the working relationships between
Expatriate and Croatian Managers.
Key themes within the investigation of cross-cultural complexities of expatriate and
Croatian managers within the same working team include: Culture, Education and
language, and Managerial competence. The major themes used for examining
adjustment issues facing both expatriate and Croatian managers include:
Expatriation, HCNs, IHRM, and Adjustment.
Cross-cultural complexities are relevant for both, expatriate and Croatian managers,
as that is the area, which needs to be understood by both parties, so that a working
relationship can be established in the first place. Through the understanding and
acceptance of cultural differences, the cross-cultural working relationship between
expatriate and Croatian managers can flourish and harvest the best of both worlds,
which in turn may result in the successful integration of both managers, contributing
to the success of the organisation as a whole. During the process of gaining
understanding and accepting each other’s differences, an adjustment process for the
Croatian, as well as the expatriate manager, will take place. The success of the
adjustment process will reflect the success of the expatriate assignment and the
Croatian managers’ willingness to adapt and share knowledge, even though this may
be different to the way things have been done in the past.
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Black and Mendenhall’s (1991) U-Curve Theory and Armstrong’s (2003) J-Curve of
Change will be utilised when analysing the research findings to determine their
relevance, and which model may be the most applicable in relation to adjustment
issues faced by both, expatriate and Croatian managers.
2.1 Investigation of Cross-cultural complexities of expatriate and Croatian
managers working together within the same team
2.1.1 Culture
National culture provides the most common explanation for nation-level differences
in individual work behaviours, attitudes, and values (Bond and Smith, 1996).
According to Schooler (1996), culture represents the historically determined set of
implicit and explicit abstract notions and beliefs shared by a group of individuals
who have undergone a common historical experience.
History is particularly important when trying to understand how and for what reason
cultural beliefs and values have evolved. Not one single country will have the
history as another, setting it apart and forming individual traits of the population. In
addition, governments have the power to influence the direction of culture within
national boundaries. Socialist governments often intervene to regulate and organize
production and, through re-distribution of wealth, to build security nets for societal
members, satisfying human goals rather than profit motives (Tsoukas, 1994).
Because re-distributive benefits such as health care, welfare programs, and housing
are applied equally, there is less need for people to be attached to work to survive
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(Walder, 1992). In contrast, the capitalist system is a more ‘self-serving’ economic
system where everyone looks out for his/her own interests’ (Ralston et al., 1997, p.
180). Here the market place provides the necessary differential rewards to stimulate
individual efforts.
Huang and Harris (1973) state that cultural values, norms, beliefs and assumptions
are reinforced symbolically and passed through socialization and training from
generation to generation. Hofstede (1984) writes, that this passing down results in
‘collective programming of the mind which distinguishes the member of one human
group from another’. This is re-enforced by the observations of Schneider and
Barsoux (1997) for the city of New York, with its multitude of ethnic
neighbourhoods. Rather than a cultural melt-down, there are distinct cultural
fragments, with differences clearly defined.
According to Clark (2003), new researchers inspired to do cross-cultural research
must go beyond Hofstede’s framework to adequately represent the dynamic and
complex effect of culture on psychological processes and behaviour. Although
Hofstede’s framework for understanding national differences has been one of the
most influential and widely used frameworks in cross-cultural marketing studies, in
the past ten years or so it has also become one of the most widely criticised.
Detractors contend that his dichotomised way of representing cultural differences
leads to unjustifiable generalisations and ignores the subtleties and frequent
contradictions inherent in many national cultures (Clark, 2003).
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One of the countries examined by Hofstede was Yugoslavia. No evidence was found
of where Hofstede’s study took place, but it is very likely to have been in
Yugoslavia’s capital Belgrade, in the republic of Serbia. It could be assumed that
these findings could be applied to Croatia, a republic of the former Yugoslavia.
However, Hofstede’s findings could be criticised of generalisation, as no
consideration has been given to the wide diversity of the former Yugoslavia’s
population. According to Soderberg and Holden (2002), Hofstede failed to see the
multicultural realities that already at that time pervaded many European states such
as Great Britain, Belgium, France and Yugoslavia. Serbians and Croatians have a
different language and religion. Historically, Croatia was part of the Austro-
Hungarian Empire and Serbia was occupied by the Ottoman Empire. The Croatians
are pre-dominantly Catholic (95.5% in 1996, according to a study by Kunovich and
Hodson), whereas the Serbians are pre-dominantly orthodox, both having different
religious holidays and resulting values and cultures. According to Kunovich and
Hodson (1999), the former Yugoslavia is and has been the meeting place of the
Roman Catholic, Eastern Orthodox and Muslim faiths. The convergence of these
three religions has led to much competition and conflict throughout the region over
the last seven centuries.
Within a society, a variety of views will be present. It is the majority of these views
and beliefs that will have emerged from the interaction between people living within
the same geographical area. Being a former socialist state (as part of Yugoslavia),
Croatia is still struggling with its impregnated values while at the same time going
through a transitional period in order to manifest itself as an independent state, with a
view to joining the EU in 2007. According to Esping-Anderson (1990), more active
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government intervention in economic co-ordination and the appropriation and
redistribution of economic wealth represents a more socialist economic system,
varying between the centralised planning of the communist system and the re-
distributive welfare of the Western social democracies.
Drawing on Hofstede’s cultural study, where he identified four ‘value’ dimensions
on which countries differed, table 2.1 below summarises Croatian versus Western
‘values’.
Value Dimensions
Croatian Values
Western Values
Power distance - Inequalities between higher/lower hierarchies in organisations - Centralised organisations - To be told what to do - Privilege and status symbols
- Hierarchies only for convenience to manage inequality of roles - Decentralisation - To be consulted - Few, if any, privileges
Uncertainty avoidance - Fear of ambiguity and unfamiliar risk - Uncomfortable with change - Motivated by security and belongingness
- Comfortable with ambiguity - Comfortable with change - Motivated by achievement
Individualism/ Collectivism
- Collectivism - Identity based on social group / network - Maintain harmony and avoid direct confrontation
- Individualism - Identity based on the individual - Tasks more important than relationships
Femininity/ Masculinity
- Femininity - People and relationships more important than money - Work to live - Conflict resolved by compromise and negotiation
- Masculinity - Material success, money and possessions - Live to work - Conflict resolved by direct means
Table 2.1: Summary of Croatian versus Western cultural values, using Hofstede’s
four value dimensions
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The above table shows that the Croatian culture differs greatly from the Western
culture, such as experienced in Great Britain, Germany and the USA. Croatia scores
highly on power distance and uncertainty avoidance, while the West has a low score.
Croatia also displays collectivist and feminine values, while the western countries
display individualistic and masculine values. The table is a useful tool for
highlighting the nature of management and organisations in Croatia, when compared
to western countries.
Jackson (2003) states that this type of approach can lead to stereotyping, and to
expectations about a different culture, which might hamper cross-cultural
communication. However, it should be regarded as a starting point for expatriate and
Croatian managers for working across cultures, highlighting each other’s differences
and assisting in understanding and bridging those differences. If both sets of
managers are aware of the cultural gap, then they can actively seek to close it. There
is a need for managers to be convinced of the reality of cultural difference, and to
take appropriate preparatory action (Jankowicz, 1994).
One of the apparent issues for the Croatia of today is the remaining strong tendency
towards collectivism, which encourages conflict avoidance, group decision-making
and lack of individualism. These issues are backed up by Smith et al. (1994),
according to whom some researchers propose that decisions are typically
participatory in collectivistic – high power distance countries. Collectivistic cultures
emphasise cooperation, interdependence, and group goals, and thus prefer plans that
support group harmony (Anguinis, 2002). According to Triandis (1995), the basic
15
distinction between collectivism and individualism is based on four universal
dimensions, stating that the definition of the self is independent in individualism and
interdependent in collectivism, and that personal and communal goals are not aligned
in individualism but closely aligned in collectivism.
Bearing the above in mind, any global organisation sending expatriate managers to
Croatia must be aware, or must make itself aware, of the cultural differences, to
which certain behavioural patterns will be attached, when expecting positive co-
operation between the expatriate and the Croatian managers. National culture
provides the most common explanation for nation-level differences in individual
work behaviours, attitudes and values (Bond and Smith, 1996). Hofstede (1993)
believes that the spread of business onto the global stage brings the issue of national
and regional differences to the fore. “There is something in all countries called
‘management’, but its meaning differs to a larger or smaller extent from one country
to another”. The meaning of language is explored further in the ‘Education and
language’ section below.
The importance of cultural sensitivity in Eastern and Central Europe has been
highlighted in several studies (Cyr and Schneider, 1996). The evidence suggests that
local managers in these countries often resent the attitude of western managers
frequently seen as arrogant and unwilling to take account of the views of local people
(Soulsby and Clark, 1996). Although Selmer et al. (1994) found that foreign
expatriate managers were perceived by local subordinates to be more supportive than
local managers. Their measure of supportive behaviour included such items as
16
confidence, personal interest, friendliness, information sharing, consultation,
recognition, and job assistance.
2.1.2 Education and Language
In most societies, education is a powerful institution for preserving and perpetuating
the cultural heritage, as well as much of the social structure (Olsen, 1991). It is a
major agent of socialisation, teaching individuals how to function as members of
society.
Other relationship issues, which can arise between expatriate and Croatian managers,
can be attributed to education and language. Although these factors belong to the
overall expression of culture, it is nevertheless worth examining them in their own
right to gain a wider understanding of how to improve conflict avoidance, co-
operation, efficiency and the smooth daily business operation.
Van Deth (1995) established that more accessible educational systems provide more
individuals with the necessary skills to deal with the complicated procedures and
issues in all aspects of life, including work. As such, accessible educational systems
provide more people with the means to deal successfully with complex work. In
turn, more people will have challenging and rewarding jobs and a greater likelihood
that work will be more central.
The first expression of national culture is found in language (Rosenfeld and Wilson,
1999). Despite attempts to create a universal language such as Esperanto, it seems
unlikely to succeed until a universal culture is in place to support it. Language
17
reflects the ‘deep structure’ of national culture (Rosenfeld and Wilson, 1999).
Linguistic ability is also important as it helps to establish contact. However, having
total command of the other language may not be feasible and may be less important
than trying to develop a feel for what matters to others, picking up bits of
‘conversational currency’: local expressions, information, and interests (Byrne,
1992).
Once one passes into the post-socialist countries of Eastern Europe and the former
USSR, then the quest for semantic equivalence is a nightmare, as the languages
concerned have still not developed their lexical resources to cope with Western
management terminology (Holden et al., 1998). This view is supported by
Jankowicz (1994) in his study into English and Polish languages. This study
highlighted that not all English words can be directly translated into Polish and that
there can be some loss of meaning. While no comparable study was found with
regard to the Croatian language, Eudict (online) was used to translate several
business words and similar results were found. Some key words have been
translated in Table 2.2 below.
English word Croatian translation
manager menadžer
computer kompjutor
finance financije
marketing marketing
Table 2.2 Translation of some key business words from English into Croatian
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The pronunciation of the Croatian translations mirrors that of the English
pronunciation very closely. Other Croatian translations for the English words listed
in Table 2.2 above have been found, but their meanings differ.
According to Brislin (1980), languages are simply linguistic symbols for common
terms and can be translated into an equivalent set of symbols, a different language,
with little loss of meaning. It is important to bear in mind that language does not
only encompass verbal communication. According to Schneider and Barsoux
(1997), much is communicated in what is not said. Being able to read non-verbal
signs and body language is crucial.
Schneider and Barsoux (1997) state that efforts to speak the local language may have
more symbolic than practical value, but the impact is highly significant, as it
indicates a willingness to communicate and to connect with host nationals. Choice
of language can create winners and losers, as language dominance is often
synonymous with power and influence.
When President Kennedy visited Berlin during the Cold War, he wanted to
strengthen the relationship between the people of Berlin and the people of the USA.
He famously stood on a platform by the Berlin Wall and said: “Ich bin ein Berliner!”
(translated: I am a Berliner - interpreted: I am a doughnut, which also has the same
connotation). The people of Berlin laughed, waiting for the punch-line, which did
not come. What President Kennedy had used was a direct translation from the
English language into German. If he had been educated to the fact that a ‘Berliner’ is
a doughnut and not a person from Berlin, he would not have used this statement.
19
Therefore, managers have to be careful when building relationships with their
counterparts to ensure that the language they are using is appropriate and not
misunderstood.
2.1.3 Managerial Competence
Managerial competence in directing a global company in a multi-national
environment is essential. Michael Argyle’s (1967) skills model (see Appendix A)
can be utilised to identify ‘competence’ or ‘skilled performance’, by addressing the
following factors:
- the motivation to perform
- knowledge and understanding of what is required
- the ability to translate knowledge into specific behaviour
- the performance itself which provides evidence that the above three factors
are present.
The competences of an expatriate manager (see Appendix B) can ensure successful
training and re-direction of the thinking process of Croatian managers, if required, in
order to understand the mission and the objectives of the relevant organisation. It is
often the case that expatriate managers are in the host country, such as Croatia, for
only a short period of time, approximately 2 years. Therefore, the aim is to enable
the expatriate managers to hand over the management position to the Croatian
manager successfully, including delegation of certain tasks by themselves and in turn
the delegation of routine tasks by the Croatian managers to their own subordinates.
20
Successful delegation of authority and responsibility depends on interpersonal
communication, the foundation of a dynamic functioning of an organisation. (Zugaj
and Bojanić-Glavica, 1996).
Hiltrop and Janssens (1990) assert that the demand for expatriates is increasing as a
result of a rapid growth of multinational companies and international joint ventures,
and as expatriates meet the needs of a parent company to implement corporate
strategy or to supply a skill or knowledge which is not available locally. Phatak
(1992) lists nine skills that companies can look for when selecting their expatriate
manager:
(1) Technical ability
The expatriate manager should be qualified for the particular assignment and
should be able to train the Croatian manager and to transfer knowledge
successfully. This ability will stem from the expatriate’s quality of education
and professional training and will help to make the Croatian manager more
receptive to new ideas and co-operation.
(2) Managerial skills
The methods and techniques applied by the expatriate manager to
communicate and interact with the Croatian manager will determine the
degree of success of the overall achievement of company goals. The
managerial skills will be fundamental to overcome any animosity or lack of
21
cooperation they may encounter, by drawing on experiences from past foreign
assignments and through the use of various management techniques,
depending on the situation that presents itself.
(3) Cultural empathy
Sensitivity to the host country culture and a non-judgmental understanding of
other cultures is essential (Jackson, 2003). This empathy will allow the
expatriate manager to understand that there are differences between the two
cultures and to identify what they are and where their roots are.
(4) Adaptability and flexibility
According to Jackson (2003), this includes the ability to integrate with other
cultures, being adaptable to change, having the ability to solve problems,
being sensitive to differences in different cultural situations and the flexibility
to manage a continuous operation despite gaps in information and assistance.
The expatriate manager should possess both of these qualities to assist with
integration with Croatian managers.
(5) Diplomatic skills
The expatriate manager will also require diplomatic skills, which may be used
when negotiating on behalf of the company with Croatian managers, banks,
auditors, etc., and when mediating to resolve conflicts. These diplomatic
22
skills will be useful when tackling delicate situations arising from cross-
cultural differences, thus bridging the cultural gap.
(6) Language aptitude
The ability to learn the language may prove a positive strategy to show
willingness to integrate in Croatia and to ease communications with Croatian
managers. It may help in establishing good relations with co-workers and
instil trust between the expatriate and Croatian managers.
(7) Personal motives
If the expatriate manager has a positive motive for taking the assignment in
Croatia, this will prove profitable in the long term, as he/she will be
genuinely interested in the local culture and will strive to integrate quickly
and to gain a greater understanding of Croatia, its people and their customs.
This integration will be reflected at the workplace and will lead to closer and
better relationships with Croatian managers, resulting in advantages to the
company as a whole.
(8) Emotional stability and maturity
This involves having the staying power and emotional maturity to maintain
stability in a foreign environment, as well as being non-judgemental in
relationships with others (Jackson, 2003). The nature of the expatriate role
23
would deem it necessary to have a more mature manager profile, preferably
with previous international experience, which may support the fact that
integration could happen faster and smoother.
(9) Adaptability of family
For the Croatian assignment to be successful, it is important that the
expatriate’s family is willing to move and to adjust to the Croatian culture,
which will support the work of the expatriate manager. Lack of family
support can lead to underperformance, diminishing the interest in the
assignment and the work to be done.
The nine expatriate skills above are unlikely to be found in one individual alone. For
example, a manager with a high technical ability may well not have fully developed
interpersonal skills. This is often said of Accountants and Information Technology
(IT) Professionals. A balance should be struck between all nine criteria to ensure
that the most suitable candidate is selected, with the capability of taking on the
Croatian assignment, ensuring a good working relationship with the Croatian
managers is established, and completing it successfully.
The desirable skills of an expatriate manager, as listed above, have been confirmed
by a survey of 50 international companies, undertaken by the Ashridge Management
College (see Appendix C), which shows the most valued characteristics of
international management (Barnham and Oates, 1991).
24
According to Schneider and Barsoux (1997), international managers have to manage
different cultures at home and abroad, as well as within themselves. They also state
that being an effective international manager may depend upon different identities,
which can contribute to seeing oneself and being seen by others as effective (see
Figure 2.1).
IDENTITIES
Figure 2.1 Influence of different identities on the effectiveness of an international
Manager (Schneider and Barsoux, 1997)
Tung (1982) states that firms select expatriates for overseas assignments almost
exclusively on the basis of technical competence, typically as demonstrated by past
performance in the domestic setting. Many management skills do not transfer from
one country to another and a manager who performs well in the domestic setting may
not be able to adapt to managing in a different cultural setting or even in living in
International Manager
Family
Function
Industry
Education
Region
Religion
SES
Hobby
Country
Company
Gender
Age
25
intimate contact with members of another culture (Andreason, 2003). This area will
be further explored under the IHRM section in 2.2 below.
2.2 Examination of adjustment issues facing both expatriate and Croatian
managers
2.2.1 Expatriation
What is necessary for managing cultural differences is often referred to as a global
mindset. This is defined by Evans et al. (2001):
‘The concept of global mindset helps to differentiate between expatriate and
global managers. Expatriates are defined by location, as managers who are
working in a different country from their own. In contrast, global managers
are defined by their state of mind. They are people who can work effectively
across organisational, functional and cross-cultural boundaries.’
Global expansion is increasingly achieved through alliances and joint ventures, as
well as cross-border mergers and acquisitions (Schneider and Barsoux, 2003).
Boyacigiller and Adler (1991) argue that the internationalisation of markets has
undoubtedly led to significant increases in cross-cultural business interactions, and in
the use of expatriate managers in global business enterprises, without a
corresponding appreciation of the problems this entails and of the knowledge and
awareness this demands.
26
According to the Eaton Consulting Group (ECG, online), leading-edge global
companies are taking steps to address the cross-cultural competencies of both their
people, and their systems and processes. They are conducting organisational
assessments to identify where they are truly ‘global’ (see Table 2.3 below), and
where they are merely exporting mindsets, business practices, systems and processes
from corporate headquarters out to the rest of the world, and assuming what works at
home will work abroad. Jackson (2003) states, that when a corporate message is
taken directly from the home country and implanted in the host country, management
techniques and methods may result which are inappropriate to the host culture.
• Third culture mindsets exist throughout every activity
• Global competency assessment centres have been set up
• Global simulations and psychometric instruments are part of the recruitment and
people development programs
• Global leadership competency models serve as their benchmark for development
• Global leadership development programs exist, and are led by global consultants
• Globalisation strategies are developed by truly global senior teams, and
implemented in cooperation with global experts/consulting firms
• More coaching and less training
• Multinational teambuilding that involves a truly global team, and develops global
human-interaction systems
Table 2.3 Best Practice Initiatives for global organisations (ECG, online)
27
Varner and Palmer (2002) state that the growth of the international sector means
more and more managers need to have some knowledge of operations that extend
across borders. One way is through working abroad and ‘expatriation’. An
expatriate is an employee who moves from one country to another while remaining
on the employing organisation’s payroll (Varner and Palmer, 2002).
The evidence is that demand for more competent expatriate employees continues to
increase (Gregersen et al., 1998). As companies strive to compete in a global
market, these companies will need a pool of experienced expatriate employees, who
are prepared to accept assignments in line with international company expansion.
Selmer (2001) states that it is a common strategic interest of globalising firms to try
to develop a pool of internationally mobile expatriate managers.
Expatriates usually represent home companies when they assume coordinating and
managerial roles in local working units (Tung, 1998). These jobs tend to be
automatically associated with high role conflict, ambiguity, and overload due to the
necessity of constantly coordinating efforts to meet the interests of both local and
home partners (Wang, 2002).
As stated by Mike Platt (2002), an expatriate manager needs to gain a solid insight
into the mindset of their new client base and the wider market at large. The secret, if
there is one, is not just to be prepared to learn that which you don’t know, but also to
unlearn that which you do. For the expatriate manager even the most basic
knowledge may prove false in the Croatian environment.
28
Increasingly, multicultural teams are used to pool expertise across functional,
company, and national boundaries, leading to better decision-making, greater
creativity, more responsiveness to different customers, and easier local
implementation of strategy. But in order to realise this promise, multicultural teams
have to create the right tension between integration and differentiation, to build
shared expectations while preserving the enriching differences (Schneider and
Barsoux, 2003).
Black and Gregersen (1992) suggest that to be successful, expatriate managers must
learn to be ‘dual citizens’ to both the local office and headquarters by managing
commitment and responsibility to each.
According to Richards (1996), positive consequences from expatriate life include:
fulfilment of a search for adventure, the satisfying and memorable experiences, the
insights into cultural differences and oneself, and the excitement of the confusing
feeling of being a ‘stranger in a strange land’. In contrast, Hofstede (1980) found
that ‘forced exposure to an alien cultural environment can put people under heavy
stress’.
2.2.2 Host Country Nationals
Bell and Harrison (1996) state that in most international operations lower level
employees tend to be HCNs. Managers tend to be parent country expatriates whose
previous intercultural experiences are limited (Hait, 1992).
29
Even though research has shed light on managing overseas assignments and the
associated policies, scholars have not clearly considered the effects these policies
might have on the local colleagues of the expatriate. This is unfortunate, since HCNs
are valuable socializing agents, sources of social support, assistance, and friendship
to fledgling expatriates (Black et al., 1991). Very little research literature has been
found with regard to Croatians and their role as HCNs. This is referred to as the so-
called ‘donor-problem’ (Michailova, 1997).
Toh and Denisi (2003) state that there are vast differences between HCNs and
expatriates in terms of their skills and experiences, their economic opportunities, and
the level of positions typically held by HCNs and expatriates in the host unit. In
addition, the world in which global businesses operate is changing. Host countries
are now more advanced economically and socially, and their workers are becoming
more skilled and qualified to hold higher-level positions that would have required
Headquarter expertise in the past (Hailey, 1996).
According to Major and Deaux (1982), it is conceivable that if the HCNs and
expatriates are distinctive in appearance, then national identity differences will be
salient, especially if the expatriates are from a culturally distant country, compared to
the HCNs. If HCNs increasingly work intimately alongside expatriates (Hailey,
1996), either as co-workers, subordinates, or, in many instances, even superiors, they
are often in a good position to evaluate the expatriates’ deservingness on the basis of
the expatriates’ qualifications and performance, as well as the their shortcomings and
inadequacies (Leung and Morris, 2000).
30
2.2.3 International Human Resource Management
Brewster et al. (1992) state that:
‘HRM in Europe is complex. There is no other region in the world where so
many different histories, cultures and languages exist in such a relatively
small space. Each European country has its own approach to the
employment of people; its own laws, institutions, trade unions, education
and training provisions, and managerial culture. In many European
countries these approaches operate at a number of geographical levels.
Overlapping this complicated picture there is now the unique supra-
national legislation of the European Community.’
Even though Croatia is not yet in the EU, in preparation for its accession it is
adopting the supranational legislation of the EU. It is believed that the introduction
of common legislation and agreements between countries of the EU will eventually
lead to harmonisation of HRM systems across different national contexts (Brewster,
1994).
There are three major purposes for using expatriates, proposed by Edstrom and
Galbraith (1994): to fill international positions when qualified locals are not
available, for management development, and to help control, co-ordinate and assist
in the transfer of a firm’s culture.
The success of relationships between expatriate and Croatian managers depends to a
considerable degree on the quality of the company’s human resources and on how
31
effectively these critical resources are managed and developed (Stroh and Caligiuri,
1998). According to Scullion and Brewster (2001), Europeans find that technical
expertise and domestic track record are by far the dominant selection criteria.
Factors such as language skills and international adaptability seem to have more
importance for European organisations (Tung, 1982). However, as Black and
Gregersen (1991) speculated, evaluation of overseas experience should not be based
on simply whether or not the expatriate has overseas experience – the quantity,
quality and location of overseas experience should also be taken into account.
McNulty and Tharenou (2004) identified nine HRM practices from the literature as
the major HRM practices taking place before, during and after an international
assignment in most MNCs (Becker et al., 1997; Farid and Buda, 1998).
1. Planning the Assignment
2. Recruitment and Selection of Expatriates
3. Implementing the Relocation Program
4. Compensation
5. Training and Development
6. Family Support Practices
7. Performance Management
8. Turnover
9. Repatriation
HRM departments may find it difficult to measure expatriate performance, but will
need to, because they are amongst the most expensive people any organisation
32
employs (Scullion and Brewster, 2001). Scullion (1999) suggests that preliminary
European evidence of models of expatriate IHRM developed for MNCs may not be
appropriate for international SMEs. Also, Scullion and Brewster (2001) found that
recent European research highlights the importance of country specific factors and
highlights differences between countries in international staffing practices.
Poor expatriate selection is linked to expatriate failure, which is usually defined as
the premature return of an expatriate manager (Tung, 1981). More recent European
research confirms Tung’s European results and suggests that expatriate failure may
be a less significant issue for European MNEs (Price Waterhouse, 1997-98). Their
research also showed that cultural awareness training is the most common form of
pre-departure training for expatriates in Europe, but that it continues to be offered
more on a voluntary than a compulsory basis. Meanwhile, Cendant (2001) found
that 63% of expatriate assignments in Europe failed.
According to Kealey and Protheroe’s (1996) analysis, there are four methods of
cross-cultural training programs for the expatriate manager:
1. to provide the practical information on living conditions in the host country
2. to study political, economic, and cultural facts about the host country
3. to obtain cultural awareness information on the host culture
4. experiential learning activities that combine cognitive and behavioural
techniques
33
Expatriates can add more economic value to the firm than local employees or HCNs
in the long term (McNulty and Theranou, 2004). Selmer (2001) found that a
common practice is to reduce the number of expatriates through localisation, by
transferring them to local terms and conditions at the end of an assignment when the
individual employee is expected to stay on in that location for an indefinite period of
time. Harvey (1993) however, states that it is not always feasible, particularly when
the host country is far less developed and the local pay structure too low to provide
any incentive for the expatriate to accept the assignment.
According to Radošević (1994), Croatia still finds that the quality and flexibility of
employees will remain a longer-term problem. Accustomed to a clearly prescribed
set of tasks, the labour force has to learn to become ‘all round players’. The lack of
awareness of the importance of skilled labour and of employees as a company’s
strategic asset is common. The fear of dismissal is increasingly reflected in work
discipline.
2.2.4 Adjustment
Adjustment is defined as the degree of psychological comfort felt regarding an
expatriate’s host country situation (Gregersen and Black, 1990). Black et al. (1991)
made a distinction between three dimensions of in-country adjustment: adjustment
to work, adjustment to interacting with HCNs and adjustment to general non-work
environment.
Toh and Denisi (2003) suggest that expatriates are more likely to adjust when HCNs
engage in behaviours outside their work role, than when HCNs are uncooperative or
34
antagonistic (as outlined above). HCNs have an important role to play in the
adjustment process, yet researchers, at present, have overlooked this important
organisational stakeholder (Toh and Denisi, 2003). Toh and Denisi (2003) drew
upon Runciman’s (1966) theory of relative deprivation (RD) and suggest that
understanding HCNs justice evaluation is imperative, because the helping behaviours
directed at the expatriate can facilitate expatriate success (Black et al., 1998). After
all, HCNs do engage in social comparisons to evaluate their positions in a social
structure (Ofshe, 1972).
One significant deprivation, which is experienced by HCNs are the pay discrepancies
between themselves and expatriate managers, particularly with headquarter
expatriates consistently receiving relatively preferential treatment (Harvey, 1993). If
HCNs observe expatriates getting paid far more for similar responsibilities, they may
become resentful (Gladwin & Walter, 1980). Any potential feelings of injustice may
lead to serious and negative relationship issues (Scholl et al., 1987). Researches
have found that different cultures vary in terms of justice sensitivity (Major and
Deux, 1982). Schmitt and Dorfel (1999) have defined justice sensitivity as the
‘perceptual threshold for the violation of justice norms’. The justice sensitivity
influences the likelihood of detecting unfair distributions, the probability of reacting
to the unfairness, and the kinds of justice restoration efforts that the individual will
adopt (Schmitt and Dorfel, 1999).
While pay may be a cause of RD and injustice, in certain cultures justice may not be
defined in terms of pay. In feminine and collectivist cultures, such as Croatia
(Hofstede, 1991), and as outlined in Table 2.1 above, justice is deemed as served if
35
moral duties and interpersonal responsibilities are met. Therefore, rewards such as
recognition, status, and social support may be of greater value to recipients than pay.
Such situations may cause the Croatians to be less concerned with pay discrepancies
and they are unlikely to experience RD as long as other benefits received meet their
needs (Deutsch, 1985). In contrast, western cultures are individualistic and
masculine (Hofstede, 1991) and expatriate managers from western countries will
want to be remunerated for their position, status and the relocation itself. An
emerging trend found by Mervosh (1997) is that top management is making it clear
that since an international assignment is critical to career development, special perks
and compensation are not necessary for expatriates.
Adjustment can be facilitated by cross-cultural training by involving the gradual
development of familiarity, comfort, and proficiency regarding expected behaviour
and the values and assumptions inherent in the new culture (Black and Mendenhall,
1990). Shim and Paprock (2002) and Black and Gregersen (1991) found that habits
or behaviours that the expatriate takes for granted at home may be regarded as
inappropriate or even unacceptable in a new context. Cross-cultural adjustment thus
requires the acquisition of new behaviours that are better suited to the host culture.
Shim and Paprock (2002) found several learning situations that were helpful in
reducing expatriates’ difficulty with adjustment:
• Previous experiences in the host or other country
• Language competency
• Searching information on their own
36
• Help from host country friends, peers or other expatriates
McNulty and Tharenou (2004) also found that customised training and development
programs can lead to more realistic expectations and higher levels of cross-cultural
adjustment. If cross-cultural preparation is found to be inadequate, then the
expatriate and Croatian managers could suffer culture shock.
Culture shock has been covered by several writers. Black (1990) defines it as the
expatriate’s reaction to a new, unpredictable and, therefore uncertain environment.
This could also apply to Croatian manager’s reaction to a new, unpredictable and
uncertain environment. Bock (1970) sees culture shock as being an emotional
reaction to an inability to understand, control and predict the behaviour of others.
Weissman and Furnham’s (1987) definition is:
‘Culture shock is a stress reaction where salient physiological and physical
rewards are generally uncertain, difficult to control or predict and a
sojourner remains anxious, confused, and sometimes apathetic or angry until
he or she had time to develop a new set of behavioural assumptions that help
him or her to understand and predict the social behaviour of the local
natives.’
Culture Shock is more likely to occur with higher levels of culture novelty and
expatriates with higher levels of culture novelty may require more extensive pre-
departure training and in-country support (Andreason, 2003). Cultural novelty refers
37
to the degree of difference of the country of expatriation from the expatriate’s home
country (Hofstede, 1984).
Studies have generally assumed that the adjustment process is the same for all
expatriates (Shaffer et al., 1999). Shaffer et al. (1999) also state that an implicit
assumption of the Black et al. (1991) model is that it applies equally well to all
expatriates. They also state that the adjustment process may be more complex,
differing under certain contextual, structural and personal conditions. Poor
adjustment manifests itself in job dissatisfaction as well as intentions to prematurely
quit the assignment (Bhaskar-Shrinivas et al., 2004). Holden (2002) presented a
thematic model of core problems and core solutions in cross-cultural management
literature (see Figure 2.2 below).
Evidence of successful cross-cultural relationships in Croatia was found in the ECG
Case Study (ECG, online) where four dominant, but starkly different cultures
(Croatia, Turkey, UK and USA) were brought together to construct the Zagreb to
Split motorway. All the key players at management level went through cross-
cultural training to better understand the ‘why’ behind each other’s behaviour, based
on cultural factors. These managers were aware of their differences, understood
them and this helped the expatriate and Croatian managers to adjust to each other.
38
Figure 2.2 Thematic model of core problems and core solutions in cross-cultural
management literature (Holden, 2002)
According to Schneider and Barsoux (1997), respecting the behaviour and ideas of
others requires empathy. Some individuals find it easier to appreciate the thoughts,
feelings, and experiences of others. Focused listening and a non-judgmental
approach help managers to understand the other person’s viewpoint. But one’s
capacity for empathy is deeply routed in one’s character and may not be a skill easily
acquired (Schneider and Barsoux, 1997).
Ultimately, it will be the responsibility of both, the expatriate and the Croatian
managers, to work towards building a successful working relationship and to help
each other to adjust to each other’s cultures. One area, which must not be
overlooked, is the issue of trust. Sprenger (2004) states, that within a relationship
Core Problems
Ethnocentricism in the face of:
Cultural diversity experienced as:
Cultural shock which varies with experience and may be lesser or greater in impact
Core Solutions
Adaptation as first reaction to
culture shock
Adjustment as a more permanent and positive
reaction
Development of cross-culture skills possibly through training interventions:
creating ‘the cross-cultural manager’
39
that someone experiences as positive, the most important feature is trust. It has often
been said that trust is the basis for management. Allowing oneself to be managed
means trusting someone. No manager can influence or lead people if he/she doesn’t
have trust. Therefore, the expatriate and Croatian managers must learn to trust each
other.
The fieldwork will investigate cross-cultural complexities of expatriate and Croatian
managers within the same working team and will examine adjustment issues facing
both sets of managers. The conceptual framework upon which the fieldwork will be
based, will encapsulate U-Curve and J-Curve theory, to investigate cross-cultural
relationships and resulting adjustment issues.
2.3 Theoretical Framework - U-Curve Theory and J-Curve Theory
Lysgaard (1955) used a U-shaped adjustment curve to describe movement through
three phases: initial adjustment, crisis and regained adjustment. Later, Oberg
(1960) listed four stages of adjustment to an unfamiliar culture: initial honeymoon,
crisis, recovery and adjustment. In both, the ‘crisis’ phase is where expatriates
experience culture shock. Later a W-curve was proposed by Gullahorn and
Gullahorn (1963), who observed that once expatriates return home they often go
through a similar re-acculturation process, again in the shape of a U, resulting in a
double U, or W-curve.
Most descriptions of UCT include discussions of four stages (Black and Mendenhall,
1991): In the initial stage (honeymoon stage), expatriate and Croatian managers are
40
fascinated by the new culture and are excited about working together. This initial
cultural infatuation is followed by a period of disillusionment and frustration (culture
shock stage), as both sets of managers must seriously cope with working in and with
each other’s new cultures on a day-to-day basis. The third stage (adjustment stage) is
characterised by gradual adaptation to the new cultures and learning how to behave
appropriately according to the cultural norms of expatriate and Croatian managers.
The fourth stage (mastery stage) is characterised by small incremental increases in
the managers’ ability to function effectively with each other’s cultures (see Figure
2.3 below).
There has been criticism of U-Curve Theory (UCT). Weissman and Furnham (1987,
p. 315) say, ‘the empirical literature is highly equivocal, providing only very modest
support for any one pattern’. Richards (1996) states, this is because there has been a
failure to differentiate between different types of sojourners, different degrees of
adaptation to different cultural and physical environments, and adaptation to different
distinct cultural phenomena such as food, language and climate. Thus, the
formulation obscures the very real differences in adjustment pattern between
different types of traveller.
41
Close
WORKING
RELATIONSHIPS
Distant
TIME
Figure 2.3 The U-Curve of Adjustment, adapted to Cross-Cultural Relationships
between Expatriate and Croatian Managers (adapted from Black and
Mendenhall, 1991)
There has been some work in relation to the J-Curve Theory (JCT) of change (see
Figure 2.4 below), which reflects the common experience of things often getting
worse before they get better in circumstances of change (Armstrong, 2003). Black
and Mendenhall (1991) found support for a J-Curve pattern of adjustment in
relationship to cross-cultural adjustment.
Mastery Honeymoon Adjustment Culture Shock
42
Close
WORKING
RELATIONSHIPS
Distant
TIME
Figure 2.4 The J-Curve of Change, adapted to Cross-Cultural Relationships
between Expatriate and Croatian Managers (adapted from Armstrong,
2003)
This study will investigate UCT and JCT with regard to cross-cultural relationships
of expatriate and Croatian managers in a Croatian working environment, and which
model is more applicable. All of the seven subsidiary themes outlined in 2.1 and 2.2
above influence the expatriate managers and the Croatian managers adjustment to
their cross-cultural relationship in the Croatian working environment. Interview
questions will be used to interview both expatriate and Croatian managers to
Mastery Adjustment Honeymoon Culture Shock
43
determine the skills and knowledge required by either manager to establish cross-
cultural relations. In addition, the interview questions will explore barriers to cross-
cultural working and adjustment issues.
The expected outcome of this study is that the relationships between expatriate and
Croatian managers follow the U-Curve pattern. It is anticipated that both parties will
experience the four stages of honeymoon, culture shock, adjustment and mastery at
some stage in their cross-cultural working relationship.
The following chapter will describe the research methodology, including sample and
procedure, preparation of the questionnaire used, and what particular methods and
techniques were employed to collect and analyse primary data.
44
3 RESEARCH METHODOLOGY
3.1 Research Paradigm
The research paradigms, which were considered for the collection of research data
were positivistic and phenomenological paradigms.
Positivism is concerned with working with an observable social reality and the end
product of the research can be law-like generalisations similar to those produced by
the physical and natural scientists (Remenyi et al., 1998). Here, the researcher
assumes the role of an objective analyst, who interprets the collected data in a
completely objective value-free manner, which then lends itself to statistical analysis.
Critics say that rich insights into this complex world are lost if complexity is reduced
entirely to a series of law-like generalisations. We are constantly being told of the
ever-changing world of business organisations, if we accept that the circumstances of
today may not apply in three months’ time, then some of the value of generalisation
is lost (Saunders et al., 2003).
Phenomenological paradigm is concerned with the necessity to discover details of a
situation to understand the reality working behind it (Remenyi et al., 1998). Not
only are business situations complex, they are also unique. They are a function of a
particular set of circumstances and individuals. This follows from the interpretivist
position that it is necessary to explore the subjective meanings motivating people’s
actions in order to be able to understand these (Saunders et al., 2003). Lester (Lester,
online) states that the purpose of the phenomenological research is to gather deep
45
information and perceptions through inductive, qualitative methods such as
interviews, discussions and participant observations, and representing it from the
perspective of the research participants. Adding an interpretive dimension enables it
to be used as the basis for practical theory, allows it to inform, support or challenge
policy and action.
The adopted research paradigm is phenomenological, because the data collected is
qualitative, which is defined as:
‘… an array of interpretative techniques which seek to decode,
describe, translate and otherwise to come to terms with the meaning
not frequency of certain more or less naturally occurring phenomena
in the social world.
Van Maanen (1993)
This approach was taken so as to actually see the interviewees in their natural setting,
giving less risk of misinterpretation and thus more accurate and valid data. Saunders
et al. (2003) have found that managers are more likely to agree to be interviewed,
rather than complete a questionnaire, especially where the interview topic is seen to
be interesting and relevant to their current work. An interview provides them with an
opportunity to reflect on events without needing to write anything down. Other
researchers report similar conclusions, where participants prefer to be interviewed
rather than fill in a questionnaire (North et al., 1983, cited in Healey, 1991). This
situation also provides the opportunity for interviewees to receive feedback and
personal assurance about the way in which information will be used.
46
Saunders et al. (2003) identified four data quality issues in relation to the use of
semi-structured interviews: reliability, bias, validity and generalisability.
The nature of semi-structured interviews, lack of standardisation, may lead to
concerns about reliability. Findings derived from such interviews are not necessarily
intended to be repeatable since they reflect reality at the time they were collected, in
a situation which may be subject to change (Marshall and Rossman, 1999).
However, the value of using this non-standard approach is derived from the
flexibility that may be used to explore the complexity of the topic. Therefore, an
attempt to ensure that qualitative, non-standard research could be replicated by other
researchers would not be realistic or feasible without undermining the strength of this
type of research (Saunders et al., 2003).
The concern about reliability in semi-structured interviews is also related to issues of
bias: interviewer and interviewee bias. The interviewer bias concerns comments,
tone, non-verbal behaviour and interpretation of responses (Easterby-Smith et al.,
2002). Interviewee bias can be caused by perceptions about the interviewer or in
relation to perceived interviewer bias. The points listed in Table 3.1 below will need
to be considered by the interviewer to avoid bias.
47
• Interviewer’s own preparation and readiness for the interview.
• The level of information supplied to the interviewee.
• The appropriateness of the interviewer’s appearance at the interview.
• The nature of the opening comments to be made when the interview
commences.
• The interviewer’s approach to questioning.
• The impact of the interviewer’s behaviour during the course of the interview.
• The interviewer’s ability to demonstrate attentive listening skills.
• The interviewer’s scope to test understanding.
• The interviewer’s approach to recording information.
Table 3.1 Key measures to overcome bias in qualitative interviews (Saunders et al.,
2003)
According to Saunders et al. (2003) validity is concerned with whether findings are
really about what they appear to be about. The high level of validity that is possible
in relation to qualitative interviews that are conducted carefully is made clear by the
following quotation:
‘The main reason for the potential superiority of qualitative
approaches for obtaining information is that the flexible and
responsive interaction which is possible between interviewer and
respondent(s) allows meanings to be probed, topics to be covered
from a variety of angles and questions made clear to respondents.’
(Sykes, 1991, cited in Healey and Rawlinson, 1994)
48
With regard to this dissertation, the qualitative research will not be able to be used to
make generalisations about the entire population, because it is based on a small
number of interviews and the circumstances may be subject to change.
3.2 Sample and Procedure
The aim of this study is to investigate relationships between expatriate and Croatian
managers. The research will concentrate on both cross-cultural complexities within a
Croatian working environment, and adjustment issues facing expatriate and Croatian
managers. The results of the research will be applied to UCT and JCT with regard to
adjustment issues emerging from cross-cultural relationships of expatriate and
Croatian managers, to discover which model is more appropriate. The research
method chosen, in the form of semi-structured interviews, is discussed below.
The research samples were randomly selected from a list of foreign businesses in
Croatia, regardless of industry or sector. This list was acquired from a leading
government trade organisation.
This research involved interviewing eight managers working in a cross-cultural
working environment in Zagreb, the capital of Croatia. Easterby-Smith et al. (2002)
state that the study of a small sample of subjects may be more appropriate than a
large number, so as to establish different views of relationships. According to Lester
(Lester, online) a common statement concerns sample size – it can be hard to get
49
over to people that a single-figure sample is valid. If the sample size is increased a
common misunderstanding is that the results should be statistically reliable.
The semi-structured interview questions (see Table 3.2 below) used were adapted
from Table 3 in ‘Assessing the potential for effective cross-cultural working between
“new” Russian managers and western expatriates’ (Camiah and Hollinshead, 2003).
These interview questions were formulated for a previous MBA dissertation, making
this approach a tried and tested method, thus contributing to this study’s reliability
and validity through a proven model. Before utilising the interview questions, they
were adapted for the Croatian environment. The only change made was to replace
‘Russian’ with ‘Croatian’, reflecting the area of investigation.
The interview questions will elicit information about two principle areas:
1. Cross-cultural complexities of expatriate and Croatian managers working
together, such as cross-cultural barriers, knowledge and learning.
2. Adjustment problems facing expatriate and Croatian managers.
Anonymity was assured at each interview to participants, ensuring confidentiality,
thus putting interviewees at ease, removing any potential anxiety and encouraging
the interviewees to reflect their honest opinions. Each interview was allocated sixty
minutes, with an allowance for time overrun, if required. This was done to respect
the time of interviewees, but also allowing sufficient time to complete a valid and
50
reliable interview. At the end of the sixty minutes, the interviewees would be asked
if they were willing to continue for an additional amount of time.
Questions to Croatian Managers Questions to Expatriate managers
Adjustment issues Adjustment issues
1. What difficulties are you experiencing as a Croatian manager adjusting to working in Croatia with expatriate managers?
1. What difficulties are you encountering as a western manager adjusting to working in Croatia?
2. What do you think are the reasons for these difficulties?
2. What do you think are the reasons for these difficulties?
Barriers to cross-cultural working Barriers to cross-cultural working
3. What would you say holds up the process of smooth working in a cross-cultural team?
3. What would you say holds up the process of smooth working?
4. What do you most enjoy/least enjoy working on a cross-cultural team as a Croatian manager that you would not experience working in a purely Croatian management team?
4. What do you most enjoy working in Croatia as a western manager that you would not experience in other countries?
5. Can you compare and contrast the differences between working on a cross-cultural team and a purely Croatian team?
5. Can you compare and contrast the difference between working in a cross-cultural team and a purely western team?
Skill, knowledge and learning Skill, knowledge and learning
6. What skills and knowledge would you say Croatian managers had to learn or improve in order to become better international managers?
6. What skills and knowledge would you say western managers have to learn or improve to better cope with working in Croatia?
7. What skills and knowledge would you say expatriate managers should improve in order to perform better in Croatia?
7. What skills and knowledge would you say Croatian managers should improve in order to become better international managers?
8. What organisational advantages and disadvantages do you feel there are in working in a cross-cultural team?
8. What organisational advantages and disadvantages do you feel there are in working in a cross- cultural team?
9. What have you learned from working with an expatriate manager?
9. What have you learned from working with Croatian managers?
10. What do you think expatriate managers have learned from working with you in a cross- cultural environment?
10. What do you think Croatian managers have learned from working with you in a cross-cultural environment?
Table 3.2 Semi-structured interview questions (adapted from Camiah and
Hollinshead, 2003)
51
This semi-structured approach was a useful method for establishing rapport, allowing
a more personal and in-depth interview, which gave greater flexibility for the
interview itself. Semi-structured and in-depth, or non-standardised, interviews are
used in qualitative research in order to conduct discussions not only to reveal and
understand the ‘what’ and the ‘how’, but also to place more emphasis on exploring
the ‘why’ (Saunders et al., 2003). Robson (2002) states that in-depth interviews can
be very helpful to ‘find out what is happening and to seek new insights’. They may
also be used in relation to an exploratory study.
Usunier (1998) suggests that during translation attention should be paid to: lexical
and idiomatic meaning, grammar and syntax, and experiential meaning. Other
factors of significance may be misinterpretation of responses because of cultural
differences between the interviewee and the interviewer (Marshall and Rossman,
1999). These assertions are of great importance with regard to reliability, bias, and
validity. To address these areas a translator was present during the interviews.
The author’s wife is both a Croatian and British national and acted as a Croatian
interpreter (CI). CI is tri-lingual, being fluent in Croatian, English and German
languages. CI was present at all interviews to enable most, but particularly Croatian
managers to have the option of using non-English dialogue, if they chose to, and to
interpret nuances. CI also acted as note taker during the interviews, her presence was
explained and permission gained from all interviewees prior to commencement of the
interview itself. All managers interviewed had an excellent understanding of the
English language and thus communication in English was conducted freely and
openly. Time was given to each interviewee to develop their response, allowing
52
them to first understand the question, develop an answer and then translate it into
English before finally giving a response to a question.
Interview data was recorded instantly through note taking and any additional
information was also recorded to help recall the context and content of each
interview. After the notes were written up, summaries were also produced of key
points that emerged. Any apparent relationships identified between themes were also
noted allowing a return to these to seek to establish their validity.
3.3 Data Collection
Most MNCs with expatriate managers are based in the capital Zagreb. The list of
foreign businesses in Croatia was scrutinized with a view to identifying suitable
companies.
This list contained 45 companies, of which 39 companies were based in Zagreb and
15 were approached. Interviews were conducted at 7 out of these 15 organisations.
The data is represented in Figure 3.1 below. These companies were then plotted on a
city map of Zagreb, grouping them by geographical area.
53
Foreign buinesses in Croatia
45
39
24
15
7
05
101520253035404550
Total B
usines
ses
Zagre
b ba
sed
Not a
ppro
ache
d
Appro
ache
d
Busin
esse
s inte
rviewed
Categorisation of Businesses
Number of
Businesses
Figure 3.1 Suitable foreign businesses in Croatia for Research purposes
From the 15 companies approached, it was possible to speak to 20 suitable managers.
Of these 20 managers, 12 were expatriate managers and 8 were Croatian managers.
At one of the 7 companies 2 interviews were granted, one with an expatriate manager
and one with a Croatian manager. Altogether, 8 interviews were undertaken, 4 with
expatriate managers and 4 with Croatian managers. This data is represented in
Figure 3.2 below.
54
Manager Interview Ratios
20
12
4
8
4
0
5
10
15
20
25
Man
ager
s sp
oken
to
Expat
riate
s sp
oken
to
Expat
riate
s inte
rviewed
Cro
atians
spo
ken
to
Cro
atians
inte
rviewed
Categorisation of Managers
Number of
Managers
Figure 3.2 Suitable Managers for Research Interviews
Robson (2002) advises researchers to adopt a similar style of dress to those to be
interviewed, stating that essentially the interviewer will need to wear clothing that
will be generally acceptable for the setting within which the interview is to occur.
This is important, because appearance may affect the perception of the interviewee
and have an adverse effect on credibility in the view of the interviewee, or result in a
failure to gain their confidence. The resulting bias may affect the reliability of the
information provided. A smart-casual dress code was adopted for these occasions
and found to be acceptable.
A number of authors have reflected upon different types of difficulties with regard to
access to the studied organisation and to individual informants (Andersen et al.,
1995). Buchanan et al. (1988) maintain that negotiating access is a game of chance,
55
not of skill. According to Michailova and Liuhto (2000, p.20), collecting field data
in Eastern Europe shows that fieldwork there is not the art of the possible, the art is
to make it possible. They also list a number of specific issues that must be addressed
when conducting qualitative research in Eastern Europe (see Appendix D). Goodwill
on the part of the organisation and its participants is something that external
researchers need to rely on (Saunders et al., 2003).
The approach taken to establish contact was to ‘cold call’, by walking in from the
street and speaking to the receptionist. Great care was taken to explain the purpose of
the visit to the receptionist and a request was made to gain access to either an
expatriate or Croatian manager of the company. Consideration was given to the
possibility of low trust relations between post-socialist managers and academic
researchers. According to Michailova and Liuhto (2000), in Eastern Europe the very
appearance of researchers is still perceived as new and very strange. Managers and
employees in socialist and post-socialist organisations are not at all used to
encountering people from the academia. The vast majority are highly suspicious and
resistant and it requires a great deal of sensitivity and effort to make them providers
of information.
It was evident that the Croatian managers appeared to have a much more relaxed
attitude and were more open to the idea of this research interview. As already shown
above, 50% of Croatian managers spoken to agreed to the interview. In contrast,
only 33% of expatriate managers were willing to make time available. Great skill
had to be used to persuade the expatriate managers into giving their time, whereas
the Croatian managers readily agreed.
56
Prior to each interview the full purpose of the research was explained and a private
room was sought and always made available, to provide the correct environment to
preserve confidentiality and to put the interviewee at ease.
All interviews were completed on a one-to-one basis and in a timely fashion. At no
time was an interview rushed or pressure brought to bear on the interviewee to
respond quickly, in order to finish within the allocated time. Rapport was established
very quickly with refreshments offered by the interviewees prior to each interview.
The order of questions varied depending on the flow of the conversation, and data
was recorded by note taking. Answers were probed to build upon or to gain
explanations from interviewees’ responses, to understand the meanings that the
interviewees ascribed to various phenomena.
At all stages of contact with the expatriate and Croatian managers, from initial
introduction to the end of the interviews, care was taken to be aware of tone of voice
and non-verbal behaviour. The aim of this was to prevent misinterpretation of
responses, which in turn may introduce bias into the research.
Every person spoken to, from receptionists to managers, displayed a good
understanding of the English language. At no time was a potential interview
jeopardised due to language difficulties. This is important to note, as there could be
a perceived bias if interviewee selection was based on language skills only.
57
3.4 Data Analysis
There are many qualitative research traditions or approaches, with the result that
there are also different strategies to deal with the data collected (Coffey and
Atkinson, 1996). Saunders et al. (2003) state that the analysis of qualitative data
involves a demanding process and should not be seen as an ‘easy option’.
The findings of this research will be analysed using the theoretical and conceptual
frameworks outlined in the Literature Review (Chapter 2). Consideration will be
given to national culture, as the analysis of the collected data is performed. The
Literature Review is based on eastern and western studies of cross-cultural
relationships, the data for this study was collected in Croatia.
The notes from the interviews will be written up. They will then be summarised and
categorised. A matrix in the form of an Excel spreadsheet will be designed for the
purpose of categorisation. This will help to identify key themes, allowing the data to
be rearranged and analysed in a systematic and rigorous fashion. This is an
‘interpretivist’ approach and should not be seen as implying less analytical rigour
(Coffey and Atkinson, 1996).
3.5 Limitation of the Research Method applied
An interview is a purposeful discussion between two or more people (Kahn and
Cannell, 1957). In this study, semi-structured interviews were used, with the
researcher having a list of questions to be covered. The data collected was
58
qualitative, making the adopted research paradigm phenomenological. This
‘interpretivist’ approach seeks to understand the subjective reality of those that have
been studied in order to be able to make sense of and understand their motives,
actions, and intentions in a way that is meaningful (Saunders et al., 2003). An
inductive approach to research was taken through the interview process, with the
purpose of getting a feel for the true meaning of responses and so as to understand
better the themes discussed during the interviews.
Participants in this study were chosen randomly in so much that they were not pre-
selected. However, a limitation of this study with regard to the selection process
could be that the range of participants was diminished, because they had to be
working in a cross-cultural environment, with either an expatriate or Croatian
manager. The organisations from which the participants were selected were all based
in Zagreb, the capital of Croatia. If the interviews had been conducted in towns,
rather than a major city, then other cross-cultural and adjustment issues may have
arisen, particularly for expatriate managers. The provincial outlook and attitudes of
local Croatians in towns may be more difficult to adjust to than the contemporary
outlook of city dwellers. This could have a bearing on the validity of the
interviewees and the data collected.
Robson (2002) advises researchers to adopt a similar style of dress to those to be
interviewed. To achieve the right balance for the interviews could have been
problematic, because there is a varied dress code, with some managers having to
wear very formal suits, while other managers have very ‘casual’ attire. Due to time
constraints and the approach of cold calling, identifying and conforming exactly to
59
the dress code for each interview was impractical. From the reaction of those
approached, it can be concluded that the smart casual dress code adopted was found
to be acceptable.
Great care was taken to keep each interviewee in the same frame of mind before and
during the interview. For the Croatian managers this proved to be relatively straight
forward, they were very open and willing to participate. With the expatriate
managers this proved to be difficult; it was found that considerable skill and coaxing
had to be applied to get them to agree to an interview in the first place. The reasons
given were, that they had busy schedules to adhere to. The validity of the interviews
conducted could be questioned, due to the fact that twice as many expatriate
managers declined an interview when compared to the number of Croatian managers.
This could be a limitation to this study and it is unclear how this limitation impacts
the outcome of this study.
The process of all interviews was of a robust nature; it could be said that they were a
reliable source of cross-cultural data, ensuring validity of the research data collected.
All of the interviews were completed within the allocated time, with no pressure to
rush or end an interview prematurely. A good rapport was established,
confidentiality was assured and a relaxed atmosphere prevailed. The interviewees
proved to be very open, willing and honest participants. At no time was there any
reason to doubt the truthfulness of the responses. Non-verbal communication was
monitored continually to try to ensure that the responses were a true and fair
reflection of the interviewees’ experiences, and that the true meaning was being
correctly interpreted. The findings of these interviews are not necessarily intended to
60
be repeated, since they reflect reality at the time they were collected, in a situation
which may be subject to change (Marshall and Rossman, 1999).
A limitation of the interpretation of the data findings could have arisen from the
previous expatriate and cross-cultural experiences of the author. Having been
involved in various cross-cultural environments, and having reflected upon the
familiarity with the subject area, these experiences may have percolated into the
interpretation of the findings. Thus, there may be interviewer bias with regard to
how the findings were interpreted. It is hoped that having been aware of this
potential limitation from the outset, this is not the case. As Delbridge and
Kirkpatrick (1994) note, ‘because we are part of the social world we are studying we
cannot detach ourselves from it, or for that matter avoid relying on our common
sense knowledge and life experiences when we try to interpret it’.
A potential limitation to this study is that a single method approach was employed in
the form of interviews. This research was unable to test the generalisabiliy of the
data gathered. This may have been achieved with the use of quantitative data
gathered through questionnaires. The interviews have given a feel for key issues,
and to subsequently employ a questionnaire may have allowed a larger sample to be
collected and statistically analysed, allowing conclusions to be drawn about the
complete population. Black and Mendenhall (1990) note, that very few studies that
addressed UCT from an empirical perspective actually used statistical techniques in
their analyses. Multi-methods of data collection for the same study are beneficial.
One advantage of using multi-methods is that it enables triangulation to take place.
Triangulation refers to the use of different data collection methods within one study
61
(Saunders et al., 2003) and can overcome potential bias. Saunders et al. (2003)
assert, that since all different methods of data collection will have different effects, it
makes sense to use different methods to cancel out the ‘method effect’. This will
lead to greater confidence being placed on the conclusions of the research. The
findings of the interviews are presented in the next chapter.
62
4 DATA FINDINGS
4.1 Sample Classification
This section presents the biographical data of the interviewees, both expatriate and
Croatian (Tables 4.1 and 4.2 below). It also graphically displays the gender and age
of managers interviewed for this study. As already outlined in the Research
Methodology chapter (Chapter 3), a total of eight managers were interviewed.
Nationality Gender Age Position Sector
British M 50s Director Consulting
British F 40s PR Manager Public Relations
Danish M 40s Managing Director Property Consultant
Danish M 40s Trade Counsellor Trade
Table 4.1 Biodata of Expatriate interviewees
Gender Age Position Sector
F 30s Residential Manager Property Consultant
F 30s Commercial Officer Trade
F 30s Consultant Audit
M 20s Software Consultant Software
Table 4.2 Biodata of Croatian interviewees
From the eight managers interviewed, four were expatriates and four were Croatian
managers. From the four expatriate managers, three were male and one was female
(see Figure 4.1 below). For the Croatian managers interviewed the ratio of male to
63
female was exactly opposite to the expatriates, with one being male and three being
female (see Figure 4.2 below).
Gender of Expatriate Managers
3
1
Male Female
Gender of Croatian Managers
1
3
Male Female
Figure 4.1 Gender of Expatriate Figure 4.2 Gender of Croatian
managers interviewed managers interviewed
From the four expatriate managers, two male and one female were between 40 and
50 years old, and one male was between the ages of 50 and 60 years. (see Figure 4.3
below). From the Croatian managers interviewed, one male was between the age of
20-30 years and three female manages were 30-40 years old (see Figure 4.4 below).
From the data on managers’ ages, it is evident that all expatriate mangers are older
than the Croatian managers.
64
Age of Expatriate Managers
2
1
1
0 1 2 3 4
40-50 yrs
50-60 yrs
Age
Number of managers
Male Female
Figure 4.3 Age of expatriate managers interviewed
Age of Croatian Managers
1
3
0 1 2 3 4
20-30 yrs
30-40 yrs
Age
Number of managers
Male Female
Figure 4.4 Age of Croatian managers interviewed
From the Biodata Tables (4.1 and 4.2 above) it is apparent that the positions of the
expatriate managers are more senior than those of the Croatian managers. Amongst
the expatriate managers are two managers at Director level, with the other two being
65
senior managers. All of the Croatian managers interviewed hold middle-
management positions.
From the four expatriate managers, two were British and two were Danish. Both,
expatriate and Croatian managers interviewed were drawn from a similar mix of
sectors, such as Trade, Consulting, Audit, Software and Public Relations. There is
an even distribution of sectors amongst gender, age, position and nationality.
4.2 Presentation of interview findings
The interviews covered two main areas. These areas were used to categorise the data
to assist with analysis, as presented by Camiah and Hollinshead (2003). The first
category ‘Cross-cultural complexities‘ is sub-divided into ‘Barriers to cross-cultural
working’, which observes obstacles to effective international team working, and into
‘Skill, knowledge and learning’, which observes acquisitions of skills and
knowledge, and opportunities for learning. The second category ‘Adjustment Issues’
observes difficulties encountered by expatriate and Croatian managers and the
perceived reasons for these difficulties. A transcription from an interview can be
found in Appendix F.
66
4.2.1 Cross-cultural complexities
Barriers to cross-cultural working
Three interviewees, two expatriate and one Croatian, felt that there were no specific
barriers. One of the expatriate managers said: ‘There are none’, and ‘the level of
English across all levels of Croatian society is superb’. Another: ‘No hold ups that
you would not expect to find elsewhere.’ The Croatian manager has also experienced
no specific barriers, stating: ‘Croats and other EU managers have the same
problems’.
The other expatriate managers expressed frustration with the lack of efficiency of
their Croatian counterparts and their stubbornness. ‘Things take a lot longer’ was a
statement made. Inflexibility and trust were also raised as barriers to cross-cultural
working. According to one manager:
You have to be a specialist in all matters. You cannot trust the
so called ‘experts’ with any assignments if you want to be sure
that the result should be usable.
One Croatian interviewee found that at first it was very difficult to work with
expatriate managers, ‘as they think that they know everything better’. Another
experience is that expatriate managers are not direct enough when discussing work
related task.
67
One female Croatian manager quoted the lack of promotion opportunities for
Croatian employees as de-motivating when comparing opportunities for expatriates.
Another Croatian manager expressed satisfaction in having received a promotion
recently and felt that there were further promotional opportunities for herself within
the company in the future.
Both, expatriate and Croatian interviewees, spoke about working hours. The
expatriate managers expressed that the Croatians do not work sufficient hours; the
Croatian managers felt that there was pressure to work long hours. According to one
expatriate manager:
There are too many coffee and lunch meetings without reason.
They need to understand that 9-4 is not enough for getting higher
productivity.
One Croatian manager stated:
There in no 9.00 – 5.00 work time. Sometimes I work until 11.00 in
the evening. There are no days off and no calling in sick.
The barriers described in this section are not exhaustive, but are indicative of the
sense that emerged from the interviews. This was summed up by one Croatian
interviewee, who states:
68
The biggest barrier is that people are not willing to accept
differences between cultures and are not willing to make
necessary compromises.
Skill, knowledge and learning
The research exposed perceived differences in speed between expatriate and Croatian
managers in completing tasks, making decisions, and also the way that deadlines to
be met are communicated. The expatriate managers believe that Croatians need to
learn to work faster, improve efficiency, meet deadlines and be more pro-active. In
addition, they need to develop strategic planning, decision-making skills and a more
professional approach to business.
One expatriate manager stated that ‘it is very interesting to hear different views, it
teaches westerners new things as well’. In general, the expatriate managers believe
that they themselves need to learn and understand in greater depth about ‘the break-
up of the former Yugoslavia and the impact that this still has on Croatia’. This is
reflected in one comment, that there is ‘survival thinking’ and another comment that
‘the Croatians have uncertainty of being paid at the end of the month’.
The Croatian managers believe that the expatriate managers need to have better
preparation before taking on an assignment in Croatia. Once the assignment has
been taken on, there also needs to be greater social integration of the expatriates in
the local culture. As one Croatian interviewee stated:
69
Socialise with ordinary Croats and learn about local politics and
best business practice.
There is a need for the expatriate managers to recognise local customs and
differences in business culture when working with Croatian counterparts. This has
been an issue raised by every Croatian manager interviewed. One such comment
was:
The most important thing is that business in Croatia is done in
a different way than in the expatriates’ countries and that their
knowledge and help is appreciated, but Croatian circumstances
have to be accounted for as well as our knowledge.
The Croatian managers acknowledge that they can learn from the expatriate
managers in such areas as delegation and communication skills, better organisation
and control of work. They also admit that they need to change their mindset, because
working in an international environment, performance and results matter.
4.2.2 Adjustment Issues
Expatriate managers have reported that their adjustment issues are mainly concerned
with lack of ownership displayed by Croatian managers. This manifests itself in lack
of responsibility, where ‘a word is not a word’, and the lack of service provided.
The reasons given were said to be the Croatians’ cultural heritage and historical
traditions with roots in the socialist system.
70
According to an expatriate interviewee:
The complete lack of service approach I would say is the worst.
The very narrow minded way of thinking and the proud Balkan
behaviour, which makes it very difficult to discuss or negotiate
issues in general. Croats are in general very nice people but as
for young people they are extremely spoiled and reactive instead
of being proactive and try to change their own situation. They
completely depend on their parental help and support and are often
unable to make any decisions whether or not this concerns
themselves or the business environment they are acting in.
Two of the expatriate managers reported no real adjustment issues. The first stated
that she had worked across the CEE region before moving to Zagreb, and felt that
Croatia is very western orientated in its approach, with strong EU influences. The
second expressed that he has been married to a Croatian national for several years
and has also been on other international assignments in the past.
Croatian managers found that expatriate managers can be condescending, patronising
and arrogant, while one said that this could be ‘a problem of personality not
nationality’. Concerns were also raised about a lack of understanding of the local
market and business customs. Also, it was found that expatriate managers do not
tend to integrate with Croatian culture fully, one female interviewee stated, for
example, that:
71
Expats stick together and tend to side with foreigners when it
comes to differences in opinion.
Another female interviewee remarked:
I think that there are different ways of doing things in Croatia and
different ways of communication between colleagues.
Table 4.3 below summarises the issues, which emerged from the interviews with
both, expatriate and Croatian managers.
Expatriate orientation Croatian orientation
Adjustment Concern about lack of ownership within the work
place, displayed as lack of responsibility and
service approach. Resulting from cultural
heritage and roots in the socialist system.
Barriers to team working Lack of delegation, flexibility, responsibility.
Issues of trust, work practices and stubbornness.
Frustration with speed of task completion.
Skill, knowledge and learning Need to develop strategic thinking, profit
orientation, communication skills,
professionalism, pro-activity, efficiency and
effectiveness.
Adjustment Concern about lack of understanding of local
culture, market and local business customs.
Sense of being patronised. Resulting from
cultural differences, ways of communicating, and
lack of integration of expatriates.
Barriers to team working Expatriates ‘knowing things better’. Pressure of
long working hours, lack of directness and
promotion opportunities. Personality issues.
Skill, knowledge and learning Need for recognition of local customs and
differences in business culture when making
decisions. Social integration, and better
preparation before international assignment.
Table 4.3 Summary of findings (adapted from Camiah and Hollinshead, 2003)
72
The analysis of these data findings will be discussed in more detail in the following
chapter.
73
5 ANALYSIS AND DISCUSSION
5.1 Cross-cultural complexities
Working with cross-cultural complexities in a Croatian working environment
depends largely on the development of cross-cultural management skills. Adler
(1991) defines cross-cultural management as follows:
Cross-cultural management studies the behaviour of people in
organisations around the world and trains people to work in
organisations with employee and client populations.
It describes organisational behaviour within countries and
cultures; compares organisational behaviour across cultures
and countries: and perhaps, most importantly, seeks to under-
stand and improve the interaction of co-workers, clients,
suppliers, and alliance partners from different countries and
cultures. Cross-cultural management thus expands the scope
of domestic management to encompass the international and
multicultural spheres.
Holden et al. (1998) and Jankowicz (1994) found that language could be a major
barrier to cross-cultural working. They found that CEE languages have still not
developed their lexical resources to cope with Western management terminology.
Their studies highlighted that not all English words can be directly translated and that
there can be some loss of meaning.
74
The results of this research study indicate that language is not a barrier for either,
expatriate or Croatian managers during their team working. This has been confirmed
during the actual interviews, which were conducted in English, while having a
translator present. The level of English was of a very high standard throughout and
all nuances could be captured. The only time that language was mentioned in an
interview was by one expatriate interviewee, to express the high level of English in
Croatia, both at work and during leisure. According to The Economist (2004),
knowledge of English in central Europe has become a basic skill of modern life
comparable with the ability to drive a car or use a personal computer.
It could be said that the studies carried out by Holden et al. (1998) and Jankowicz
(1994) do not apply to Croatia, but it could also be said that were the studies to be
repeated, similar findings would now also be found in Poland and other CEE
countries. Had Jankowicz carried out his 1994 study in Croatia, instead of Poland,
then the findings of that study may well have had the same outcome for Croatia, as
they had for Poland. In the ten years since the study, the use and understanding of
the English language across all CEE countries may well have improved considerably,
although not replaced the national language. The Economist (2004) states that the
rise of English as a lingua franca will not necessarily do much to diminish arguments
over national languages within or between countries in places like the Balkans or the
Baltic States.
In this study, communication was found to be strong, due to the high level of the
English language amongst expatriate and Croatian managers. The only
75
communication issue that arose during interviews was that the Croatian managers felt
that the expatriate managers needed to be more direct when discussing work related
tasks. There may be circumstances when the Croatian managers do not fully
understand instructions given by the expatriate managers, leaving room for
ambiguity and misunderstanding. This can result in tasks not being completed
correctly or schedules being missed. Two of the expatriate managers reported issues
with being able to delegate work to Croatian managers, the need to closely monitor
what was being done and the time frames in which the work was completed.
According to the research findings of this study, a significant barrier to cross-cultural
working involved working practices. Expatriate managers expect Croatian managers
to adhere to western working practices, for example working hours. One of the
Croatian managers complained that she was expected to work longer hours most of
the time. Expatriate managers expressed the need for Croatian managers to work
longer hours and to work more efficiently, so as to meet deadlines and become more
effective managers. It can be concluded that Croatian managers have not understood
the need to take responsibility for the timely completion of their workload. They still
expect to take their coffee and lunch brakes and to finish work at pre-prescribed
times, regardless of organisational needs.
It is general knowledge that senior managers in western countries work longer hours
than middle and lower management. According to this study, the expatriate
managers’ positions were more senior than those of the Croatian managers. Wang
(2002) found that these jobs tend to be associated with high role conflict, ambiguity,
and overload due to the necessity of constantly coordinating efforts to meet the
76
interests of both local and home partners. Western expatriate managers, even within
their own culture, expect subordinates to work a similar number of hours to
themselves. To project this western expectation onto a post-socialist culture may be
unreasonable and cause resentment amongst their counterparts.
From this study, a pattern of resentment emerged from the Croatian managers of
being patronised by their expatriate counterparts. They expressed the opinion that
the expatriate managers projected that they ‘know things better’. The Croatian
managers have not taken into account the fact that the expatriate managers will
invariably, in organisational terms, have a higher technical and cultural acumen. One
of the expatriates’ roles is to transfer company values and procedures to the Croatian
managers. It is therefore reasonable to expect that in organisational terms the
expatriate managers should ‘know things better’.
The personality of both sets of managers will affect communication, delegation and
empathy within the cross-cultural team. Zugaj and Bojanić-Glavica (1996) state that
the successful delegation of authority and responsibility depends on interpersonal
communication. This is reinforced by the findings of this study, where problems,
which emerged were attributed to ‘personality not nationality’, and managers’
‘egos’. Schneider and Barsoux (1997) state that one’s capacity for empathy is deeply
routed in one’s character and may not be a skill easily acquired.
As already stated, it has been found that the expatriate managers hold more senior
positions. A similar finding was made by Toh and Denisi (2003) who state that there
are vast differences between HCNs and expatriates in terms of their skills and
77
experiences, their economic opportunities, and the level of positions typically held by
HCNs and expatriates in the host unit. In this study, the expatriate managers at
Director level displayed a greater understanding of cross-cultural complexities, when
compared to the other expatriate managers, and seemed more at ease with
understanding and accepting these. This manifested itself through positive and
forward-looking responses about the Croatian working environment. The other two
expatriate managers were senior managers, but not Directors. In contrast, all of the
Croatian managers were younger and were found to be less experienced than their
expatriate counterparts. This was reflected in their responses during the interviews,
where answers were less detailed and they were more subjective when compared to
the expatriate managers’ answers, which were more objective.
Shim and Paprock (2002) assert that although expatriates absorb new knowledge on
behalf of headquarters and might change their original concepts of the host countries,
they seldom realise that they have learned something from them. This is
contradicted by the findings of this study. The two expatriate managers at Director
level were explicit about their previous experiences in cross-cultural relationships at
both a personal and professional level. They both reported no difficulties or issues
with regard to cross-cultural complexities whilst working in Croatia, and suggested
that this was due to their previous cross-cultural experiences. This confirms Shim
and Paprock’s view (2002) that related to cultural influences, learning is a process
that results in a change in knowledge, attitude and skill.
78
5.2 Adjustment Issues
Scullion and Brewster (2001) confirm that Europe is heterogeneous and that there are
many cultural differences within European countries, which impact on expatriation.
Most of the literature available on cultural differences within European countries
compares the cultures of eastern and western Europe. No studies could be found in
the literature comparing western and Croatian cultures. Empirical literature drawn
upon for this study (Soderberg and Holden, 2002; Hofstede, 1984; Kunovich and
Hodson, 1999) are not explicit about Croatian circumstances, but use Yugoslavia and
other CEE countries for comparison to western cultures.
One expatriate manager stated that Croatians do not perceive themselves as eastern
or central European, although they do not perceive themselves as western either. He
also made the observation that Croatian nationals do not perceive themselves to be
that far removed from western culture. This view is supported by another expatriate
manager who felt that Croatians have a western outlook. This is also supported by
one of the Croatian managers, stating that Croatians are neither eastern nor western.
In contrast, the empirical literature suggests, that Croatia has a more eastern than
western orientation. They display very similar characteristics, norms and values as
CEE countries, as suggested by Hofstede. This can be put down to its historical ties
to Hungary, and as a former socialist state with strong ties to the former USSR and
other CEE countries. In general, according to this study, Croatians have a desire to
embrace western values and are in the process of adjustment to these, but wish to
retain their own identity and culture.
79
The evidence from this study suggests that Croatian managers still have a long
adjustment process ahead of them. Concerns were raised by the expatriate managers
about lack of responsibility and service approach, and a general lack of ownership
demonstrated by Croatian managers within the work place.
It is important to highlight that Croatian managers have concerns about the expatriate
managers’ lack of understanding of the local market and business customs. They
also expressed concerns about the need for recognition of local traditions and
differences in business culture when making decisions. This study has shown that
these concerns are justified. The reason for this lack of understanding could be that
the expatriate managers had insufficient preparation before the start of the
assignment. Upon commencement of the assignment the expatriate managers are
likely to be fully submerged in the daily business activities, leading them to neglect
further research, so as to fully understand and absorb the local culture. This could
affect the quality of decision-making by the expatriates in the Croatian business
environment. The Croatian managers, when responding to the adjustment questions,
felt that the expatriate managers needed to integrate more with the Croatian
managers themselves and that through this integration they could gain better
understanding of the Croatian culture. This view is supported by Black et al. (1991)
who found that HCNs are valuable socializing agents, sources of social support,
assistance, and friendship to fledgling expatriates. No evidence was found in this
study of social integration by both sets of managers. The only integration that
occurred was at the occasional work-related function.
80
Black et al. (1991) believe that previous overseas experience facilitates cross-cultural
adjustment. This study found this to be true. As described earlier, two of the
expatriate managers have held previous international assignments and have adjusted
to the Croatian culture without any difficulties. One manager in particular has
worked across the CEE regions before, and has found no adjustment issues in
Croatia. She felt that this was due to her previous work experiences in CEE and
stated that after having worked in Russia and Poland, competencies in the Croatian
working environment set it apart from some of its CEE counterparts. The other
expatriate manager quoted, not only had previous international experience, but is also
married to a Croatian national. He reported no adjustment difficulties due to his past
experiences and his wife’s influence.
Interestingly, this research also revealed that two of the Croatian managers also had
previous international experience, both having been expatriates themselves. One of
the Croatian managers had previously lived in London and only had minor
adjustment issues. She felt that expatriate managers have a propensity to ‘stick
together’ and that this had also been the case for her, whilst working in London. The
other Croatian manager quoted, had gained expatriate working experience in
Moscow and London. He stated that he had no adjustment issues to working with
expatriate managers in a Croatian working environment at all.
The other four managers, two expatriates and two Croatians, had no previous
experience working in culturally diverse teams. The adjustment issues experienced
by these managers were different from those of the four managers who were exposed
to previous cross-cultural working. The difficulties for these expatriate managers
81
were displayed in frustration with the ‘proud Balkan behaviour’ and the ‘narrow-
minded way of thinking’ of their counterparts. A sense associated with trust issues
emerged from these two expatriate managers. As Sprenger (2004) asserts, within a
relationship that someone experiences as positive, the most important feature is trust.
The difficulties for the two Croatian managers were minor. The difficulties
experienced by these managers were due to the expatriates’ interpretation of local
customs.
This study postulates that relationships between expatriate and Croatian managers
follow the UCT. It hypothesises that both parties will experience the four stages of
honeymoon, culture shock, adjustment and mastery at some stage in their cross-
cultural working relationship with each other.
The hypothesis that both parties will experience the four stages of adjustment has
been found to be true. The managers with greater cross-cultural exposure have made
swift progress through the stages of honeymoon and culture shock, assisting them to
adjust to Croatian team working faster. For these experienced cross-cultural
managers, mastery of the adjustment process is continual. They recognise that cross-
cultural adjustment is an ongoing process. According to Camiah and Hollinshead
(2003), cultural precedents from West and East require continual adaptation and re-
negotiation. It is evident from this study that the experiences of these managers
cause the trough of the curve to be less pronounced. This curve resembles the
pattern of a ‘J’ rather than the pattern of a ‘U’.
82
The trajectory for the less experienced managers was more distinct. They
experienced the honeymoon period with greater anticipation and excitement than the
more experienced managers. As they moved from the honeymoon to the culture
shock stage, they were taking longer to adjust to the cross-cultural environment.
Once they have reached adjustment and progressed to the mastery stage, they seem
unaware of the need for continual improvement and ongoing adjustment. The trough
of the curve was found to be more pronounced. This curve resembles the pattern of a
‘U’ rather than the pattern of a ‘J’.
This study has also found that the experienced managers have a better working
relationship with their cross-cultural counterparts, than the less experienced
managers. Shim and Paprock (2002) found that previous experiences in the host or
other country were helpful in reducing expatriates’ difficulty with adjustment.
Drawing on the outcomes of this study, three major conclusions can be made.
Firstly, the managers who have held previous international assignments and have
gathered cross-cultural experience follow the J-curve pattern of adjustment.
Secondly, all managers who have not held previous international assignments and
have not gained previous cross-cultural experience follow the U-curve pattern of
adjustment. Finally, the managers that follow the J-curve pattern of adjustment have
a closer cross-cultural working relationship with their expatriate or Croatian
counterparts in a Croatian working environment.
83
5.3 Recommendations
National culture provides the most common explanation for nation-level differences
in individual work behaviours, attitudes and values (Bond and Smith, 1996). This is
confirmed by the findings of this study, where the Croatian managers believe that the
expatriate managers need to adjust more to cross-cultural working in a Croatian
working environment. Hollinshead and Michailova (2001) suggest that while post-
socialist managers need to re-adjust to the new era, westerners seeking to assist them
would be advised to ‘unlearn’ the idealized elements of familiar managerial
principles with critical reference to what is useful in new settings. Expatriate
managers also require better cultural preparation before an assignment in Croatia and
should seek greater social integration in the local culture. This greater social
integration would aid the expatriate managers’ understanding of Croatian culture and
improve their business activities in the local market.
In addition, this study found that Croatian managers should also integrate more with
the expatriate managers to help the integration and adjustment process for both. Toh
and Denisi (2003) suggest that expatriates are more likely to adjust when HCNs
engage in behaviours outside their work role, than when HCNs are uncooperative or
antagonistic. HCNs have an important role to play in the adjustment process, yet
researchers, have overlooked this important organisational stakeholder.
Expatriate managers need to remember that Croatians have different opinions and
perspectives and feel they have to fight for their opinions to be heard, which could
result in feelings of injustice. According to Soulsby and Clark (1996), local
84
managers often resent the attitude of western managers, frequently seen as arrogant
and unwilling to take account of the views of local people. Any potential feelings of
injustice may lead to serious and negative relationship issues (Scholl et al., 1987).
Expatriate and Croatian managers need to understand that if work tasks are not
clearly given or received then a breakdown of trust may occur, leading to a
deterioration in their working relationship. Croatian managers need to learn to seek
clarification if they feel they have not clearly understood what needs to be done to
complete a task. Expatriate managers need to learn to qualify that their instructions
have been fully understood.
Croatian managers need to develop a more pro-active approach to business and to
develop strategic thinking, profit-orientation and general professionalism in the
workplace. The study conducted by Camiah and Hollinshead (2003) about new
Russian managers and western expatriates concluded that Russian managers needed
to develop ‘softer’ management competencies of decision-making, problem solving
and proactive involvement in corporate affairs. They also concluded that the Russian
managers needed to acquire a broader repertoire of managerial attributes. In a
western and eastern cross-cultural context, it can be said that this Croatian study
supports their findings. Radošević (1994) confirms these results, stating that the
quality and flexibility of Croatian employees will remain a longer-term problem.
Croatians are accustomed to a clearly prescribed set of tasks, the labour force has to
learn to become ‘all round players’.
According to Schneider and Barsoux (1997), respecting the behaviour and ideas of
others requires empathy. They also state that focused listening and a non-judgmental
85
approach help managers to understand the other person’s viewpoint. This would
suggest, that Croatian managers need to develop a more empathetic understanding of
the role of the expatriate manager. Expatriate managers may also need to adopt a
more sensitive approach during the knowledge transfer process, thus reducing the
likelihood of any potential resentment by Croatian managers. Both sets of managers
should accept that a more empathetic approach is required during interaction and
team working. Companies sending expatriates to Croatia should consider the
expatriate managers’ interpersonal skills before committing them to the assignment,
which may prevent conflict and misunderstanding arising from lack of consideration
of other viewpoints.
This study has concluded that managers with previous cross-cultural experiences
have a closer working relationship with their counterparts. They display a J-Curve
pattern of adjustment. The managers with less cross-cultural experience display a U-
Curve pattern of adjustment. From this study there is no indication of cross-cultural
training being undertaken by any of the managers interviewed. Further research
could establish whether cross-cultural training has an impact on the patterns of
adjustment in relation to J-and U-Curve Theory. Black and Mendenhall (1990)
suggest that if some anticipatory adjustments are made, this might lead to less initial
euphoria because of more realistic expectations and anticipatory behavioural patterns
and may then result in a more J-curve pattern of adjustment.
Price Waterhouse (1997-98) found that cultural awareness training is the most
common form of pre-departure training for expatriates in Europe, but it continues to
be offered more on a voluntary than a compulsory basis. Cross-cultural management
86
experience can only be achieved through having practiced management in a cross-
cultural environment. This can prove to be a difficult process for both, expatriate
and Croatian managers. Companies should provide cross-cultural training on a
compulsory, rather than a voluntary, basis to assist their managers to better prepare
themselves for cross-cultural team working and to facilitate the adjustment process.
There should be pre-assignment training for both sets of managers to prepare them
for the cultural differences they may face and to introduce them to the culture they
will meet. The training should then continue throughout the assignment, so that
potential areas of tension can be identified and addressed immediately, thus reducing
conflict. McNulty and Tharenou (2004) confirm that training and development
should take place before and during an international assignment.
87
6 CONCLUSION
Croatia is pursuing a programme of economic adjustment and reform, transforming
its economy into one based fully on market principles. Already, there has been a
large increase in FDI, with Croatia’s main investment partners being Austria and
Germany. There is every reason to believe that with the accession to the EU, FDI
will continue to rise. The infrastructure has taken a big leap forward, with the
completion of the Zagreb – Split motorway in the summer of 2005. This links the
two largest cities, with more motorways being completed over the coming years, to
link other major cities. The Zagreb – Split motorway project was a joint venture
between Croatia, Turkey, the UK and the USA, successfully combining the skills and
knowledge of both, expatriate and Croatian managers (ECG, online).
There will be an increase in expatriate managers being assigned to Croatia in the
future. According to Scullion (1994), European firms rely heavily on expatriates to
run and control overseas operations. This increase in expatriation will be driven by
change, as Croatia strives to modernise its economy. This means, there will be more
cross-cultural teams with expatriate and Croatian managers forming relationships
with each other in a Croatian working environment.
The aim of this study is to understand the cross-cultural relationships of these
managers. The principle areas of research were: cross-cultural complexities, and
adjustment issues facing both expatriate and Croatian managers. This study
examined expatriate and Croatian ways of communicating, their work practices, and
their skills and knowledge. Holden et al. (1998) and Jankowicz (1994) found that
88
language could be a major barrier to cross-cultural working. The results of this
Croatian study found that the level of English was of a very high standard
throughout, enhancing communication, with no loss of meaning. Therefore it can be
concluded, that language does not form a barrier to cross-cultural working.
Within a relationship that someone experiences as positive, the most important
feature is trust. It has often been said that trust is the basis for management and that
allowing oneself to be managed means trusting someone (Sprenger, 2004).
Expatriate and Croatian managers need to understand that if working practices are
not aligned, and tasks are not clearly given or received then a breakdown of trust
may occur, leading to a deterioration in their working relationship. Therefore, the
expatriate and Croatian managers need to learn to trust each other, if they are to
establish and maintain a close working relationship.
Another area investigated with regard to relationships in a cross-cultural environment
is that of adjustment. It is the responsibility of both, expatriate and Croatian
managers, to work towards building a successful relationship and to help each other
to adjust to each other’s cultures. The evidence from this study suggests that
Croatian managers still have a long adjustment process ahead of them. Camiah and
Hollinshead (2003) suggest that this adjustment can be facilitated through the
acquisition of ‘softer’ management competencies of decision-making, problem
solving and a more proactive approach to business in general. Croatian managers
need to learn to change their behaviour according to each new situation they find
themselves in; they need to come to terms with the new realities, which cross-
cultural team working introduces.
89
The adjustment process of expatriate managers could be accelerated through deeper
immersion in the Croatian culture and greater acceptance of local business customs.
Their management practices need to be aligned with the local culture to achieve
better decision-making within the Croatian business environment, and a closer
working relationship with their Croatian counterparts.
According to this study, prior cross-cultural experience is positively related to
adjustment. This conclusion is supported by Shim and Paprock (2002), who found
that previous experiences in the host or other country were helpful in reducing
expatriates’ difficulty with adjustment. Managers with previous cross-cultural
experiences have been found to adjust to the local culture much easier than managers
without prior cross-cultural experiences. These experienced managers also had
superior relationships with their counterparts in Croatia, when compared to the less
experienced managers.
The findings of this study were applied to UCT and JCT. It can be concluded that
managers with previous cross-cultural experiences and enhanced working
relationships with their counterparts displayed a J-Curve pattern of adjustment. In
contrast, managers with less experience and less developed relationships followed
the U-Curve pattern of adjustment. The most significant factor to note is the depth of
the trough of the curves with regard to culture shock, which is less pronounced in the
J-Curve. If managers are aware of the likelihood of culture shock and its effects,
preparation for the cross-cultural environment may help them in achieving a J-Curve
pattern of adjustment. As Black and Mendenhall (1990) found, some anticipatory
90
adjustments might lead to more realistic expectations and may then result in a more
J-curve pattern of adjustment.
Further research could establish whether cross-cultural training has an impact on the
patterns of adjustment in relation to J-and U-Curve Theory. If cross-cultural training
and other preparations for working in a cross-cultural team lead to managers
displaying a J-Curve pattern of adjustment, then this may lead to managers
developing closer relationships with each other.
There is an abundance of academic literature on the subject of expatriation in
general. There are many East and West cross-cultural studies, but little has been
written about Croatia itself. Empirical literature drawn upon for this study
(Soderberg and Holden, 2002; Hofstede, 1984; Kunovich and Hodson, 1999) are not
explicit about Croatian circumstances, but use Yugoslavia and other CEE countries
for comparison to western cultures. The literature reviewed and the results of this
study suggest that Croatia has a more eastern than western orientation. Croatia, as a
new and independent country, is a fertile ground for further research in many areas,
but in particular, cross-cultural complexities.
In addition, there is very little empirical literature researching HCNs’ cross-cultural
competencies, experiences and adjustment issues with regard to working with
expatriate managers. Michailova (1997) referred to this shortage of research
literature as the so-called ‘donor problem’. From this study it can be assumed that
for every expatriate manager there will be a Croatian manager. More research could
be conducted focusing on Croatian managers with regard to their new working
91
environment, their relationships with the expatriate managers and associated
adjustment issues.
This study is a modest contribution to a better understanding of the cross-cultural
relationships between expatriate and Croatian managers and associated cross-cultural
complexities and adjustment issues. This study has identified the need for further
research into the Croatian working environment and that Croatian managers in
general must be recognised as important stakeholders, with their own cross-cultural
and adjustment issues when working with expatriates.
Organisations, which create cross-cultural teams, should consider assigning at least
one manager with previous cross-cultural experience to the team. This would assist
the adjustment process of both sets of managers. If both the expatriate and Croatian
managers have previous experience in a cross-cultural working environment, this
could accelerate the adjustment process. However, should both sets of managers
lack cross-cultural experience, then the organisation can expect a longer adjustment
period, while these managers come to terms with the complexities of cross-cultural
team working.
There were several general observations with regard to the project as a whole. The
subject of cross-cultural relationships encompasses a wide and complex area. During
the process of the literature review, where little specific research was available, some
difficulties were encountered to keep to the specific area of cross-cultural
complexities and adjustment. Due to the wealth of general literature regarding
expatriation, it was important to remain focused on the specific areas to be
92
investigated. The project was found to be beneficial in establishing that managers
were generally accessible, helpful and interested in the research undertaken, and
were prepared to interrupt their daily business to be interviewed. This was
refreshing, when considering the findings of Michailova and Liuhto (2000), who
found that the majority of eastern European managers are highly suspicious and
resistant to people from the academia.
Potential limitations to this project, such as selection of interviewees, interviewer
dress code, interviewer bias and the interpretation of data findings may have affected
the validity of this study. During this study consideration was given to these factors,
therefore it is felt that the findings are valid, making the conclusions a true and fair
reflection of cross-cultural working in Croatia at the time of the research. Generally,
the implementation of the recommendations made for companies and managers are
achievable, mainly through cross-cultural integration. If the implementation takes
place, then expatriate and Croatian managers can look forward to a successful
working relationship in a Croatian working environment.
93
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- I -
APPENDIX A Argyle’s Skills Model (1967) Feedback Motivation Changes in Attitudes outside world
Motivation Translation Behaviour
- II -
APPENDIX B
Competencies for managing internationally (Schneider and Barsoux, 2003)
Managing differences abroad Managing differences at home
- Interpersonal skills - Understand interdependencies
- Linguistic ability - Respond to different cultures
simultaneously
- Motivation to live and work abroad - Recognise cultural differences at home
- Ability to tolerate and cope with
uncertainty
- Be willing to share power
- Patience and respect - Demonstrate cognitive complexity
- Cultural empathy - Adopt a ‘cultural-general’ approach
- Strong sense of self - Rapidly learn and unlearn
- Sense of humour
- III -
APPENDIX C
Ashridge Management College Survey – Most valued characteristics of
international management
• Strategic awareness
• Adaptability in new situations
• Sensitivity to different cultures
• Ability to work in international teams
• Language skills
• Understanding international marketing
• Relationship skills
• International negotiating skills
• Self-reliance
• High task orientation
• Open, non-judgemental personality
• Understanding of international finance
• Awareness of own culture
- IV -
APPENDIX D
Specific problems and research approaches that must be addressed when
conducting qualitative research in Eastern Europe (Michailova and Liuhto,
2000)
PROBABLE PROBLEM RESEARCH APPROACHES
Identification of the field, getting Do not expect to be able to identify the field on the basis of databases,
the access to it, and entering it registers, archives, etc. - there is a lack of reliable, systematised
information. Make intensive use of informal contacts, such as relatives
and friends.
Act according to the social and behavioural norms of the country and
the particular organisation. Be sensitive towards all signals coming
from the insiders and be flexible.
Accept and respect the fact that access often depends upon insiders
placed on lower levels of the organisational hierarchy.
Secrecy and mistrust in the Be very sensitive, especially at the beginning of the field study. Find
investigated organisation out what norms are valid in the investigated setting. Try to identify
the "chemistry" of the interactive situations and influence it carefully.
Identify a few insiders who might be helpful in shortening the
outsider-insider distance and follow their advice.
Try to interview representatives of the upper levels at the beginning of the
study and let the lower levels know about these interviews when
you ask them to act as respondents.
In case you collect the data in Eastern Europe and conduct the
analysis and publish it in the western context, tell the respondents.
This will relax the respondents and they will be more inclined to giving
you more valuable information.
Respondents' suspicion and fear Focus on taking field notes. In case you want to tape the interviews,
when the researcher uses a tape avoid asking directly for a permission to do so. The risk of being
recorder when conducting interviews refused is extremely high. Approach this issue according to the
situation. Use different techniques depending on whether you know
the respondent or not.
Reduce the effect of "confrontation" caused by the tape recorder by
applying different techniques for the purposes of encouragement,
reinforcement, query, etc.
Lack of interest in receiving feedback Do not assume that the insiders want your feedback. In case you
from the researcher suggest it and they are not really interested, try to present your
analysis and findings to audiences from which you can receive
meaningful and useful feedback.
- V -
APPENDIX E
Transcript of an interview held with a Croatian manager.
How long have you been employed with this organisation?
I have been working here for five years now.
Is this the first organisation you have worked at with Expatriate managers?
No – I spent one and a half years before this working with Austrian managers.
What language do you use to communicate with the expatriate manager?
English.
How often do you interact with the expatriate manager at work?
Daily.
Can you compare and contrast the differences between working on a cross-cultural
team and a purely Croatian team?
I have never really worked with domestic managers. My work here is really
appreciated and I am happy in the international environment. Lots of my friends
who work with Croatian managers are unhappy, because they and their work are not
appreciated.
What difficulties are you experiencing as a Croatian manager adjusting to working
in Croatia with expatriate managers?
- VI -
I don’t like the feelings I get from expat managers. They often say: “You Croats
don’t have the right way of doing things. This is the way things should be done.”
This is patronising to me. Also, my boss tends to take the side of foreigners, not
locals, when it comes to differences in opinion.
What do you think are the reasons for these difficulties?
It’s that expats stick together. I know this from personal experience, when living in
London. There, us Croats used to do that, too.
What do you most enjoy / least enjoy working on a cross-cultural team as a Croatian
manager that you would not experience working in a purely Croatian management
team?
I least enjoy the pressure of long working hours. There in no 9.00 – 5.00 work time.
Sometimes I work until 11.00 in the evening. There are no days off and no calling
in sick. If I’m sick, I am expected to come back to work as soon as possible, even if
I have a note from my doctor. I enjoy that my loyalty and devotion are appreciated
and the promotion I received.
What would you say holds up the process of smooth working in a cross-cultural
team?
I think it’s the expat manager being patronising and knowing things better.
How would you describe your relationship with your boss?
Very good. There are some differences though, and I nearly left the company two
years ago, but I’m still here. I had personal difficulties, but these are now resolved.
- VII -
We used to be personal friends and had the same circle of friends. So we spent the
whole day together at work, it was overload to see each other at work and socially.
To what degree do you socialise with him outside of work now?
No much, mostly only in a working relationship. We are not close friends anymore,
but I can still tell him personal problems.
Did you find it easy to settle into working with an expatriate manager?
Yes.
What skills and knowledge would you say Croatian managers had to learn or
improve in order to become better international managers?
I think Croatian managers must learn that there are differences in opinions when it
comes to business customs and that expat managers can be difficult to work with, as
they think they know everything better and to overcome this.
What skills and knowledge would you say expatriate managers should improve in
order to perform better in Croatia?
To understand the differences in business culture and to allow for differences in
opinion of ways of doing things and accept that they are not always right.
What organisational advantages and disadvantages do you feel there are in working
in a cross-cultural team?
It’s a more interesting and challenging work load. But the cultural differences are
not dealt with effectively to overcome potential conflict.
- VIII -
What have you learned from working with an expatriate manager?
That I have to stand up and fight hard for my opinion to be heard.
What do you think expatriate managers have learned working with you in a cross-
cultural environment?
That Croatian managers don’t necessarily agree with them all the time and that
cultural differences have to be accepted and taken into account when making
decisions.
Would you take a position in future, where you would have to work with expatriate
managers again?
Yes definitely, only with expat managers.
Thank you for taking the time to answer these questions. I hope you will continue to
enjoy your career as much in the future as you do now.
You’re welcome. I think I will do, because the company has just been taken over
and there are growth plans. There should be an additional 10 new employees in the
next year.
- IX -
APPENDIX F
Dissertation Proposal
1 INTRODUCTION
With the likelihood of Croatia joining the European Union (EU) in 2007, an increase
of Foreign Direct Investment (FDI) has occurred. It is also likely that there will be
an increase of FDI in the foreseeable future. Multi National Corporations (MNC’s)
are also responding to the faster changes within the modern global environment.
These changes require MNC’s to change their policies and procedures at an ever-
faster rate.
Organisations investing in or responding to change within other countries normally
place their own personnel within these host countries. The personnel are invariably
middle managers with a lot of knowledge and experience of the organisation, which
has sent them. Some of this personnel, or expatriates, have worked in other countries
before these assignments. Others may find themselves on an assignment for the first
time. One thing, which they will have in common, is that they will have to interact
with local nationals within organisations of the host countries.
For businesses sending managers on these types of assignments, there is both, an
investment and a risk. To send an employee overseas involves cost in terms of
money and time. The majority of expatriates will have families with children; they
- X -
will expect to be compensated for this. They will also need time to move, find
accommodation, schooling and settle into their new environment.
The author has spent time living in both, Germany and the Netherlands, so has
experience being an expatriate. Five years were spent in Germany whilst serving in
the armed forces. During this time, cross-cultural experiences were made whilst
mixing with the local population, experiencing their differing values and traditions.
In the Netherlands, several years were spent setting up a pilot centre for an
international franchise organisation. This involved employing and working with
local managers, becoming familiar with a diverse cultural environment and its
challenges. The secondment to the Netherlands was made easier because of the
previous time spent in Germany, having reflected upon national and cultural
differences and being aware of potential challenges which may present themselves.
Many leisure trips were made to Croatia over many years and the author was married
in Croatia to a Croatian national. Having lived and worked in both, Germany and the
Netherlands, coupled with the trips to Croatia, this has generated a large amount of
interest in the area of cross-cultural diversity at both, a personal and a professional
level.
The purpose of this investigation is to understand the dynamics of foreign and local
manager relationships. Once identified, the findings will be used to identify areas for
potential roles of employment within Croatia, depending on relocation.
- XI -
2 AIM AND OBJECTIVES
The aim is to investigate cross-cultural relationships, intending to highlight cultural
differences. This will include exploring local and expatriate ways of communicating,
work practices, skills and knowledge. In addition the interaction between local and
expatriate managers in the working environment will be explored. This could
include consideration of how effective communication between the managers is and
the approach of each manager to their counterpart. Barriers, which prevent
communication and learning may be identified from this study, such as cultural
diversity, skills and trust. In contrast, there may be synergies which could be
highlighted allowing for relationships to be established on common ground.
Once these factors have been established, the results can be used for training
purposes for both expatriate and local managers, maximising efficiency and cross-
cultural relationships in the long-term. There may be potential for more sharing of
knowledge, as both the local and the expatriate managers will have acquired different
types and amounts of knowledge. By combining them, the company would be able
to harvest the benefits of both.
From an organisational point of view, the research should provide a basis for the
smooth running of daily business, but should also provide an insight into the
different working practices, allowing companies to learn from this exercise and
incorporate these lessons when addressing similar ventures in the future.
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3 PRELIMINARY LITERATURE REVIEW
According to Schooler (1996), culture represents the historically determined set of
implicit and explicit abstract notions and beliefs shared by a group of individuals
who have undergone a common historical experience. History is particularly
important when trying to understand how and for what reason cultural beliefs and
values have evolved. Not one single country will have the history as another, setting
it apart and forming individual traits of the population.
In Huang and Harris’ (1973) view, cultural values, norms, beliefs and assumptions
are reinforced symbolically and passed through socialization and training from
generation to generation. Hofstede (1984) writes, that this passing down results in
‘collective programming of the mind which distinguishes the member of one human
group from another’.
According to Clark (2003), new researchers inspired to do cross-cultural research
must go beyond Hofstede’s framework to adequately represent the dynamic and
complex effect of culture on psychological processes and behaviour. Although
Hofstede’s framework for understanding national differences has been one of the
most influential and widely used frameworks in cross-cultural marketing studies, in
the past then years or so it has also become one of the most widely criticised.
Detractors contend that his dichotomised way of representing cultural differences
leads to unjustifiable generalisations and ignores the subtleties and frequent
contradictions inherent in many national cultures (Clark, 2003). From 1967 until
1973, while working at IBM as a psychologist, Hofstede collected and analysed data
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from over 100,000 individuals from 50 countries and 3 regions (McSweeney,
online). One of the countries examined was Yugoslavia. No evidence was found of
where Hofstede’s study took place, but it is very likely to have been in Yugoslavia’s
capital Belgrade, in the republic of Serbia. It could be assumed that these findings
could be applied to Croatia, a republic of the former Yugoslavia. However,
Hofstede’s findings could be criticised of generalisation, as no consideration has
been given to the wide diversity of the former Yugoslavia’s population. Serbs and
Croatians have a different language and religion. Historically, Croatia was part of
the Austro-Hungarian Empire and Serbia was occupied by the Ottoman Empire. The
Croats are pre-dominantly Catholic (95.5% in 1996, according to a study by
Kunovich and Hodson), whereas the Serbs are pre-dominantly orthodox, both having
different religious holidays and resulting values and cultures. According to
Kunovich and Hodson (1999), the former Yugoslavia is and has been the meeting
place of the Roman Catholic, Eastern Orthodox and Muslim faiths. The convergence
of these three religions has led to much competition and conflict throughout the
region over the last seven centuries (Kunovich and Hodson, 1999).
Within a society, a variety of views will be present. It is the majority of these views
and beliefs that will have emerged from the interaction between people living within
the same geographical area. Being a former socialist state (as part of Yugoslavia),
Croatia is still struggling with its impregnated values while at the same time going
trough a transitional period in order to manifest itself as an independent state, with a
view to joining the EU in 2007. According to Esping-Anderson (1990), more active
government intervention in economic co-ordination and the appropriation and
redistribution of economic wealth represents a more socialist economic system,
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varying between the centralised planning of the communist system and the
redistributive welfare of the Western social democracies. One of the apparent issues
for the Croatia of ‘today’ is the remaining strong tendency towards collectivism,
which encourages conflict avoidance, group decision-making and lack of
individualism. These issues are backed up by Smith et al. (1994), according to
whom some researchers propose that decisions are typically participatory in
collectivistic – high power distance countries.
Bearing the above in mind, any global organisation sending expatriate managers to
Croatia must be aware, or must make itself aware, of the cultural differences, to
which certain behavioural patterns will be attached, when expecting positive co-
operation between the expatriate and the Croatian managers. National culture
provides the most common explanation for nation-level differences in individual
work behaviours, attitudes and values (Bond & Smith, 1996). Hofstede (1993)
believes that the spread of business onto the global stage brings the issue of national
and regional differences to the fore. “There is something in all countries called
‘management’, but its meaning differs to a larger or smaller extent from one country
to another”.
Other relationship issues, which can arise between expatriate and Croatian managers,
can be attributed to education and language. Although these factors belong to the
overall expression of culture, it is nevertheless worth examining them in their own
right to gain a wider understanding of how to improve conflict avoidance, co-
operation, efficiency and the smooth daily business operation.
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Van Deth (1995) established that more accessible educational systems provide more
individuals with the necessary skills to deal with the complicated procedures and
issues in all aspects of life, including work. As such, accessible educational systems
provide more people with the means to deal successfully with complex work. In
turn, more people will have challenging and rewarding jobs and a greater likelihood
that work will be more central. (Van Deth, 1995).
The first expression of national culture is found in language (Rosenfeld and Wilson,
1999). Linguistic ability is also important as it helps to establish contact. However,
having total command of the other language may not be feasible and may be less
important than trying to develop a feel for what matters to others, picking up bits of
‘conversational currency’: local expressions, information, and interests (Can Ethics
be taught? Harvard gives it the old college try, Business Week, April 6, 1992, p.36).
Global expansion is increasingly achieved through alliances and joint ventures, as
well as cross-border mergers and acquisitions (Schneider and Barsoux, 2003).
Varner and Palmer (2002) state that the growth of the international sector means
more and more managers need to have some knowledge of operations that extend
across borders. One way is through working abroad and ‘expatriation’. An
expatriate is an employee who moves from one country to another while remaining
on the employing organisation’s payroll (Varner and Palmer, 2002).
Increasingly, multicultural teams are used to pool expertise across functional,
company, and national boundaries, leading to better decision-making, greater
creativity, more responsiveness to different customers, and easier local
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implementation of strategy. But in order to realise this promise, multicultural teams
have to create the right tension between integration and differentiation, to build
shared expectations while preserving the enriching differences (Schneider and
Barsoux, 2003).
Managerial competence in directing a global company in a multi-national
environment is essential. Michael Argyle’s (1967) skills model (see Appendix A)
can be utilised to identify ‘competence’ or ‘skilled performance’, by addressing the
following factors:
- the motivation to perform
- knowledge and understanding of what is required
- the ability to translate knowledge into specific behaviour and
- the performance itself which provides evidence that the above three factors
are present.
The competences of an expatriate manager (see Appendix B) can ensure successful
training and re-direction of the thinking process of Croatian managers, if required, in
order to understand the mission and the objectives of the relevant organisation. It is
often the case that expatriate managers are in the host country for only a short period
of time, approximately 2 years. Therefore, the aim is to enable the expatriate
managers to hand over the management position to the Croatian manager
successfully, including delegation of certain tasks by themselves and in turn the
delegation of routine tasks by the Croatian manager to their subordinates. Successful
delegation of authority and responsibility depends on interpersonal communication,
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the foundation of a dynamic functioning of an organisation. (Zugaj & Bojanic-
Glavica, 1996).
Hiltrop and Janssens (1990) assert that the demand for expatriates is increasing as a
result of a rapid growth of multinational companies and international joint ventures,
and as expatriates meet the needs of a parent company to implement corporate
strategy or supply a skill or knowledge which is not available locally. Phatak (1992)
lists nine skills that companies can look for when selecting their international
manager:
(1) technical ability
(2) managerial skills
(3) cultural empathy
(4) adaptability and flexibility
(5) diplomatic skills
(6) language aptitude
(7) personal motives
(8) emotional stability and maturity
(9) adaptability of family.
Studies of managerial failures as a rule show that the main cause or one of the main
causes for this is insufficient or inadequate delegation (Weihrich and Koontz, 1994).
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The theoretical and conceptual frameworks and models, as described above, will
form the basis for analysing the cross-cultural relationships between expatriate and
Croatian mangers in Croatia.
4 RESEARCH METHODOLOGY
It is intended to collect both, qualitative and quantitative data through questionnaires
being sent either by post and/or email and through semi-structured telephone calls
and/or face-to-face interviews. Assistance in the data collection will be provided by
the author’s wife, a Croatian national, through translation and questioning of
interviewees in their native language. This will also aid in the interpretation of local
nuances in order to fine tune replies and identify their true meaning, adding validity
to the research.
It is hoped to find one large organisation in order to carry out a case study. This will
provide a better value in terms of validity of data and will be easier to manage.
Should a suitable organisation not be found, then the information gathered at this
stage can be utilised by applying it to various expatriate managers in various
organisations in Croatia.
To assist in the location of organisations, the following institutes can be approached:
- University of Zagreb
- University of Split
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- British Embassy
- Chamber of Commerce
- National Business Guides and
- Internet searches
The quantitative data, in the form of questionnaires, will be collected from a random
sample of managers. The questionnaire will address three main areas (Camiah and
Hollinshead, 2003):
1. Level of managers preparation for cross-cultural working
2. Statement of primary motivation for entering into cross-cultural working
3. Major issued identified
The questionnaires will be linked to semi-structured interviews, so as to provide a
multi-method approach (Saunders et al., 2003), thus strengthening the research
results validity.
The qualitative data, in the form of semi-structured telephone calls and/or face-to-
face interviews, will be conducted with both, expatriate and Croatian managers, from
organisations that have replied to the questionnaire. The interview questions (see
Appendix C) to be used will be from Table 3 of ‘Assessing the potential for effective
cross-cultural working between “new” Russian managers and western expatriates’
(Camiah and Hollinshead, 2003). Data will be recorded by note taking and
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interpreted by qualifying it through additional questioning as required and by the use
of the author’s wife’s translations.
These interviews will provide a framework for:
- adjustment issues
- barriers to cross-cultural working and
- skills, knowledge and learning
Pitfalls for both research methods, quantitative and qualitative, could relate to
reliability of the information given by the managers, and the rate of response
achieved from both methods. According to Robson (2002), there may be four threats
to reliability:
1 Subject or participant error – a ‘neutral’ time should be chosen for
questioning.
2 Subject or participant bias - interviewees may be saying what they think
their bosses want them to say.
3 Observer error – interviews need to be highly structured
4 Observer bias – interpretation of results may depend on the interviewer
Validity is concerned with whether findings are really about what they appear to be
about (Saunders et al., 2003). The validity of the selected questions for both
methods, however, is provided by using a proven model, as established by Camiah
and Hollinshead (2003).
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Benefits of the interviews will be to probe attitudes of Croatian managers, relating to
cross-cultural working and their experiences made.
In all cases, participants will be adequately informed about the purpose of the
interviews and/or questionnaires, thus removing any potential anxiety and
encouraging the interviewees to reflect their honest opinions. It is also the intention
to grant access to results, if requested. Anonymity and confidentiality will also be
ensured.
It is anticipated that conflict areas will be identified in the cross-cultural working
relationship between the expatriate and the Croatian managers and that these areas
may arise from both, differences in organisational training and national cultures and
values. It is hoped to identify potential areas, which can be addressed in order to
achieve greater cross-cultural co-operation, resulting in increased company
efficiency.
Limitations, such as validity, have been addressed throughout. Reliability will be
ensured through the qualitative, as well as the quantitative data, with ‘real life’
experiences being recorded and further analysed and summarised by the author.
Tools for analysis and summary data will be in the form of Microsoft Excel and/or
Word to tabulate relevant results and for graphs.