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MBA Review Magazine:
Developing Intercultural Competence: What Business Leaders Need to Know?
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Leaders and business executives must position themselves with a global perspective and cultural competence to be able to participate in today's competitive arena; those who do not, will find themselves and their companies marginalized and ill-equipped for international business.

 
 
 

We live in a universal society and a competitive global economy that requires modern world business executives to be equipped with the necessary skills and competence in order to be effective leaders. Future business leaders will encounter diverse ideas, situations, and individuals and will be challenged to think from a global perspective and with cultural awareness and insight. International boundaries and borders are more obscure as technology enables instant and ceaseless communication and business transactions are conducted around the clock. It will not be sufficient to be knowledgeable about only the business, economics, or trade practices; business leaders also have to consider how to communicate, interact, collaborate and lead through influence and understanding of traditions, customs and mores. The delicate balance of interrelatedness is evident as the economic conditions of the past year continue to impact everything from national economies, corporations to individuals.

This impact is not constrained by boundaries of wealth – the impact has been felt both vertically and horizontally across the world. The economic state has clearly illustrated the need to recognize and value the diversity of ideas and solutions as they relate to global conditions with global consequences.

Global perspective means more than understanding the business and economic practices; it also entails understanding the common values and beliefs that transcend all cultures. Since we work and interact in a global setting, we must develop a cultural proficiency that includes an essential understanding of intercultural competence. Intercultural competence enables one to interact appropriately given the context of the situation and in a manner that is acceptable to others. While there are many commonalties across cultures of mutual values and shared beliefs, each individual culture will communicate both explicitly and implicitly distinctive and unique qualities. A common and accepted definition of culture can be thought of as shared beliefs, attitudes and values that are transmitted through behavior, expression and thinking.

In trying to define intercultural competence, one has to differentiate between the definition and the skills. Simply speaking, intercultural competence is how one works and operates in different cultures and implies some recognition, sensitivity and awareness of differences. Specific attributes that enable successful interaction with other cultures include: communication patterns, understanding the dynamics of change, conflict resolution, tolerance of ambiguity, mutual respect, constructive interaction, knowledge of one's own bias, self-awareness and awareness of others, and willingness to be open and receptive to others with diverse opinions, attitudes, and behaviors. This intercultural competence is centered on the concept of differences. Differences that include the overt – that which is seen and obvious such as behaviors; and covert – that which is not obvious and not seen such as attitudes and cognition. The continuum can be represented with a repertoire of skills along three dimensions – affective, cognitive and behavioral.

 
 
 

MBA Review Magazine, Intercultural Competence, Business Leaders, Global Economy, Business Transactions, Global Consequences, Communication Patterns, Ceaseless Communications, Cultural Patterns, Intercultural Communications, Management Skills.