Implications of Cross Cultural Management on the performance of Tourism Management Firms

Chapter 1.0: Introduction

The aim of this dissertation is to investigate and appraise the cross-culture difference (Cross Cultural Management and performance of Tourism Management Firms), which results in the success of the company in another economy through effective performance management. The company selected for this study is ‘ABC horizons UK’ and cross-cultural management perspective examined for its ‘Chinese subsidiary’.

Globalisation is a phenomena which increases and widening interconnectedness in contemporary social life at international level. Globalisation has improved the economic prosperity ABC for the companies through expanding business across borders. However, the consequences of global business are that competition has become fierce and composition of the workforce has become complex. To succeed in the global business environment, it is important that companies sustain competitive advantage through manager navigating the company in a dynamic way for consistent performance. (Potrafke, 2015)

The company need innovation and creativity and ensure multiculturalism management to meet the needs and demands of customers. The famous phrase “think globally, act locally” has exhibited its impression that companies need to differentiate their standardised product and services through adapting to the local business environment. The firm’s performance in the international market requires the better understanding of culture in another economy to develop strategies, which allow developing viable strategic options as well as achieving these strategic with multicultural teams. (Hood and Vahlne, 2013; Lucke, Kostova and Roth, 2013)

The hyper-global context indicates that people are less likely to compromise on political freedom and cultural identity, which emphasised on the need of ‘glocal proposition’. The significant factor and driving force at the micro-level, which affect ABC business performance, employee or wok teams as well as individuals, called ‘multiculturalism’.

Therefore, the phenomena of globalisation are indistinguishable associated with multiculturalism, which leads to analysis and evaluation of the cultural divergence or convergence. (Alcantara-Pilar and Miguel, 2015)

1.1 Research background and motivation –

The opportunity for researchers to study and work in the UK has allowed interacting with different nationalities and cultures. The societal difference and cultural shock, as well as organisational environment, has raised the question for researchers how values, assumption as well as attitude and socio-economic context management improve the performance of the company and achieve its objective through cross-cultural management.

Researcher diverse background has allowed understanding the cultural differences and how it leads to conflict and poor performance at the workplace. Therefore, the objective is to use theoretical foundation and researcher own experience and experiences to analyse and evaluate cross-cultural context and manage the performance of company.

1.2 Research Rationale – ABC Horizons UK

ABC horizons UK is leading travel specialist for the UK customers to China and organises tailor-made and private holidays for the customer to China. Company emphasis on quality service and personalised services through Chinese, British and international staff. (ABC Horizons, 2016) The formal and informal communication experienced by the researcher during the internship at ABC horizons has allowed to understand the importance of multiculturalism understanding for effective performance and minimise the differences.

Researcher diverse background has allowed understanding the cultural differences and how it lead to conflict and poor performance at the workplace. Therefore, the objective is to use theoretical foundation and researcher own experience and experiences to analyse and evaluate the cross-cultural context and manage the performance of the company. (Ang and Dyne, 2015)

1.3 Thesis Statement

1.3.1 Cross-cultural Management

Thomas and Peterson (2014) elaborated that cross-cultural management understands that how national cultures affect management policies of any place. Cross-cultural management increases effectiveness in the global market. Globalisation is the main reason for cross-cultural management; there are various companies, which have connections with customers, stakeholders, companies to manage a global business. There are differences present in different cultures, the teams who are involved in dealing people with different cultures need to be aware of cross-cultural management strategies. (Holden, Michailova and Tietze, 2015)

Cross-cultural management involves people working from different races and cultures, the team orientation is made of people from different countries and thus, people and staff need to know about one another. The people are different based on national identity, race, ethnicity; religion etc. cross-cultural management tells how to overcome these differences without hurting each other’s values. (Mach and Baruch, 2015)

1.3.2 Cross Cultural Dimension

According to De Bolle et al (2015) the cross-cultural difference is based on the value system which highlights the human thinking, action and feeling in a predictable way in an organisation. The cultural difference is based on dimensions categorised into three board areas which are the relation between the people (individualism vs collectivism), motivational orientation (uncertainty avoidance and power distance) as well as an attitude which defines the orientation for short-term or long-term basis.

Figure 1: Cross Cultural Dimension

Source: Author

1.3.3 Cultural intelligence

According to Ng et al (2012) Culture is defined as the beliefs and customs as well as collective programming of mind for the particular group which distinguish one group from another. The principles and cultural values are invisible and it governs the social organisation and way of life. Therefore, culture highlights the identity of people based on shared values and belief. Cultural intelligence is the ability for correct abstraction and resolves the problem. Cultural intelligence represents the ability of people to interact across culture in an effective manner. (Lawler, 2015)

Cultural intelligence enclosed four dimensions which are cognition, metacognition behaviour and motivation. The cognitive perspective highlight meta-strategies based on procedural knowledge, motivation highlight efficacy goals and behaviour aspect shows habits and rituals. (Wood and Peters, 2014)

Cross Cultural Management and performance of Tourism Management Firms

Figure 2: Cultural intelligence

Source: Author

1.4 Cross Cultural Management – Theories and Models

1.4.1 Trompenaars’ — Cross Culture communication model

According to Trompenaars and Hampden-Turner (2012), culture embedded the way in which groups in organisation resolve problem.  Moreover, it defines seven business dimensions, which are affection vs. neutral, individualism vs. communitarianism, time, and achievement vs. ascription, universalism vs. particularism, specific vs. diffuse and internal vs. external. Time highlights the dimension and orientation of culture, affection culture means people show their feeling and neutral mean people have no emotional attachment.

Universalism and particularism highlight rules and relationship of business. Individualism and communication shows the team working for the organisation as well as specific and diffuse show degree to which people engage in their lives. Achievement and ascription culture relation and accord to people status and internal and external cultural dimension show how culture has developed the attitude of people over time. (Ferraro and Brody, 2015; Bauer, Matzler and Wolf, 2016)

1.4.2 Hofstede national culture model

According to Hofstede (1984), the four dimensions of Hofstede model are power distance, masculinity vs. femininity, individualism vs. collectivism and uncertainty avoidance. Power distance shows the degree to which power is distributed in society or organisation. In high power distance, communication flow top to bottom whereas in low power distance employee has autonomy. Individualism vs. collectivism shows the degree to which people prefer to be part of the team or prefer individual interest.

Masculinity vs. femininity shows the values and belief in relation to gender in the society. Masculine culture shows where power is with men and femininity culture shows the power of women. Uncertainty avoidance shows the degree of anxiety member has in uncertain situations. (Hofstede, 2001)

1.5 Cross cultural management and tourism handling

1.5.1 Tourist Motivation and Management

According to Page (2014), tourist motivation has significant importance in tourism management. The changes and ways to expressing tourist motivation affect the demand and supply and in order to survive in economic crisis and response to competitive environment through anticipation of changes in motivation. Therefore, tourist motivation is a psychological stimulus, which allows determining the desire for travel. The emotional and rational reason satisfies the motivation based on an emotional perspective, which satisfies the psychological need of the customer. (Mason, 2015)

The tourist motivation factors are classified into two important categories, which are motivational factors as well as determining factors. The motivation factor involves distinguish of product and services through comparing characteristics with desired product. On the other hand, motivation factor shows while people choose particular holiday package. The motivation factor involves emotional, personal, status and culture factors.  (Wong, Cheung and Wan, 2013)

1.5.2 Importance of cross cultural management practices for the tourism management firms

Tourism is such an industry in which cultural information is very important, tourist move across the world, they come to interact with so many cultures. A tourism industry cannot be successful if it cannot welcome a tourist from another culture as per expectations of the tourists. The tourism management has to interact with people of difference cultures thus successful interaction with customers is very important, tourists considered as beneficial for economy. (Reisinger, 2013)

The tourism sector has a lot of pressure on cross-cultural management because they need to welcome tourists for the sake of economy; they need to welcome them, as customers are always important for any business. Culture no doubt impact upon communication patterns like an expression of people, their thoughts, their words and their body language. (Smith and Richards, 2013)

Timothy and Boyd (2014) added that there are various management approaches in all industries especially tourism industry which is affected by cultural diversity. Tourism industry does not need a superficial information of culture of tourist but it needs to be aware of all layers of culture that are outer, middle and inner layers. The person makes with the others and the inner layer of culture is intangible that how a person is involved in problem-solving issues, a tourism firm needs to be aware of tourists culture at all levels.

The tourism industry can focus on cross-cultural management as its marketing trait. An effective marketing strategy can be obtained from values and etiquettes of customers. Cross-cultural management also helps in product development like the one a tourism firm can act as a product developer by aligning its services to the cultural context of the other customer. (Connell, 2013)

1.6 Impact of cross-cultural management on the performance

1.6.1 Benefit of Cross-cultural management in tourism management

According to Reisinger and Turner (2012), cross Cultural Management helps in reducing stereotypes and cultural shocks to tourists. There are various other issues which cross-cultural management has to reveal, the  going issues are stereotyping and cultural shocks. The stereotype is a cognitive attitude of the people regarding some particular group. In the tourism industry, it is good that staff must be trained in order to avoid guessing about the status of tourist, nature of confliABC present between races and that tourist race, social roles depicted on media for any caste and race. Stereotypes are often prophecies, which have nothing to do with reality, but these impact upon the behaviour very badly. (Woodside and Martin, 2008)

Good communication is what tourists expect, any person coming visit to distant places would obviously do not want any issue or quarrel. If there are communication gaps at the place where a person is residing then it would be tough for him to convey his thoughts. (Mach and Baruch, 2015)

1.6.2 Cultural barrier in Tourism industry

The cultural differences arise when there is a national and regional difference present between the colleagues. Tourism is very successful industry nowadays but the difference in culture is a major drawback that is a hurdle in understanding and flow of information between tourists and hosts. The management techniques also differ in different regions. Usually, labour unions of different regions respond very variously. Cultural perceptions of a person affect the behavior of thinking and actions. Sometimes the closed markets and conservative behaviour of employees in tourism industry lead to disparities and failures of international organisations.

1.7 Research Objective

  • To investigate the significance of cross-culture management contribute towards performance of ABC horizons
  • To examine the influence of cross-culture management on tourist motivation in selecting ABC horizons for tourism
  • To evaluate current cross-culture management system in ABC Horizons and its effect on performance of ABC horizons
  • To make conclusion and recommendation for cross-culture management for improvement cross-culture performance of ABC horizons

1.8 Structure of this dissertation

The first chapter of study enclosed the thesis statement, research background and context along with objectives of study. Second chapter of study enclosed the literature review on cross-culture management and its implication for tourism management organisation.  The literature evaluates cross-culture theories and model, tourist behaviour and social interaction theory as well as cross-management and performance context.

The third chapter enclosed research methodology used to achieve the objectives of study along with research instrument evaluation for this study. The fourth chapter of study analyse the data collected through interviews to analyse the performance impact and draw conclusions. The fifth chapter of study presents the conclusion and recommendation for the ABC horizons.

Chapter 2.0 Literature Review

2.1 Introduction

This chapter of study review the relevant literature on cross-culture theory and management. The focus of study is on individual and organisational level. The layers of culture have affected the product manifestations and values, the assumption has provided resistance against standardisation, and company chose ‘glocal strategy’. The socio-cultural dimension highlights fatalism and paternalism. The fatalism highlight that outcome of actions is not controllable and thus long-term plans are difficult to achieve. On the other hand, paternalism the senior role is like a mentor to guide, protect and manage subordinate. (Kinloch and Metge, 2014)

This study reviews the performance in cross-cultural context using the two important studies of ‘Trompenaars and Hampden-Turner, 2012, and ‘Hofstede, 1984, 2001’.

Section A: Culture, Layers of culture and level of analysis

2.2 Culture and Organisational culture

Smith (2001) stated that culture is an important element to understand attitudes, beliefs and knowledge of society to grip the environment and manage the human interaction.  The layers or levels of culture are knowledge, attitude and beliefs. The cultural layers are difficult to observe or observable, conscious or unconscious, and measurable or immeasurable. Moreover, culture related to environment and it is not entirely dependent on individual or group but associated with an external environment. (Baldwin et al., 2006)

Schein (2010) elaborated that organisational culture is known as shared values and beliefs, which has formed behaviour norms over time to resolve problems. The internal environment of the organisation represents the culture that based on the assumptions as well as beliefs of employees and managers. Organisational culture involves beliefs and assumptions, attitudes and behaviours of the employees and source of competitive advantage. (Schneider, Ehrhart and Macey, 2013)

2.2.1 Layers of culture

Morschett, Schramm-Klein and Zentes (2011, p.7) added that levels of culture are useful in cross-cultural research and Alder proposed culture model, which highlight the influence of three layers of culture that are attitude, values and behaviour. Value is implicit or explicit desirable, which influence the means and end of actions. Moreover, attitude communicates the values and highlight preferred manner of a person.

For example, a person attitude towards innovative product leads to buying innovations. The relationship between behaviour and attitude postulated interaction in the specific situation. In addition, the levels of group culture are an underlying assumption, artefact and values. (Goldstein, 2015)

The assumption includes feels and hears of the group with an unfamiliar culture. Value includes cultural orientation and artefact are difficult to decipher but easy to observe. Intrinsic culture defines which values are acceptable or not. This involves cognitive transformation that alters external values into shared values. The diagram below shows individual layer of culture, Schein group culture and Trompenaars layer of culture. (Sagi, 2015)

Layers of culture

Figure 3: Layers of culture

Source: Sagi (2015)

Hofstede (2001) stated that the basic assumptions give meaning to affection, cognition and behaviour, which shared among the group members at unconscious level. The basic assumptions are stable and unlikely to effect by external stimuli. The distinction between assumptions managed through rational or irrational and logical or paradoxical assumptions and thus, questioning these assumptions would destabilise interpersonal world and result in anxiety. (Hofstede, 2001)

Moreover, Trompenaars and Hampden-Turner (2012) added that norms, beliefs and value shared among the group members. The culture is implicit and difficult to perceive and every member of group have cognitively, affectively experience, and reside in inner layers of Trompenaars’ model.

Moreover, Trompenaars model elaborates that human behaviour influenced by assumptions, norms, beliefs and value.  Behaviour related to role and professional behaviour is different to private behaviour. Artefacts represent visible and verifiable part and act as proxy for culture.  (Trompenaars and Hampden-Turner, 2012)

2.3 Level of analysis and Cultural entities

The fundamental concept associated with cross-cultural research is cultural entity also known as ‘level of analysis’ which is based on individual and organisational level.

2.3.1 Individual level cultural analysis

Vijver, Hemert and Poortinga (2015, p 76-78) analysed that the individual level represents individual characteristic (cognition and emotion) which develop attitude and behaviour remain enacted. This study evaluates assumptions that individual level of culture (employees) has a relationship with another level of analysis. The individual level of analysis is a conditioning process, which starts with implicit value and Trompenaars model become a focal point of human actions and interactions. Hofstede cultural dimension elaborates individual cultural level of analysis. (Vijver et al., 2015)

Minkov and Hofstede (2012) added that the individual level set new dimension called ‘psychological culture’ and location of culture in the mind of individual highlight recurring dispute. In an organisation, groups cannot develop the mind that is independent of the members and result in aggregated minds.

Cognitive and motivation involve individual process that is relevant to organisational behaviour. Cognitive processes include categorization such as beliefs and emotions, personality traits and these develop attitudes and important determinant of behaviour. (Minkov and Hofstede, 2012)

2.3.2 Organisational Level cultural analysis

Rollinson (2008) stated that organisational culture defines normative glue, which holds the organisation together. The value and social ideas that develop the beliefs shared among the members of the organisation. The patterns and values highlighted that rituals, myths, and stories and specialised languages. Organisational culture influences behaviour, artefact and behaviours but the marginal impact on the values.

Organisational culture is homogeneous but includes organisation subculture and sub-organisational culture. Organisational subcultures based on attributes such as the structure of the organisation. (Gelfand et al., 2012)

Thornton, Ocasio and Lounsbury (2012) highlighted that the cultural profile of organisation is based on mission, involvement, adaptability and consistency. The mission characterizes organisational culture stable vs. flexible. Consistency highlight internal vs. external focus as well as adaptability integrate three factors of organisation, which develop culture. The organisation appearance encompasses design and behaviour as well as image of organisation and thus identity and image of organisation defined. (Thornton, Ocasio and Lounsbury, 2012) The cultural elements of corporate culture which shape up culture enclosed below

Table 1: Organisational Level cultural analysis

Source: (Price, 2011; Craig and Campbell, 2012)

2.4 Cross-culture implication and Tourism management

2.4.1 Individual and tourism management

Cooper (2003) highlighted the differentiation of tourist background and product demand shape up motivations as well as preference of tourist and it has direct implication for management for national and international tourist product. Tourists have different tastes and preferences during consuming tourism product. Management needs to develop cultural effective product to meet the demand of tourist attraction and object. The element of tourist product recreation based on image, knowledge and opportunities and actual time-space behaviour of tourist to create tourist recreation complex.

Murphy and Murphy (2004) studied the management need to elaborate the significance of difference for a demand of tourist product development. Management needs to analyse the spatial variation for a demand of cultural tourist. Cultural policies are important element of urban regeneration and culture serve as an instrument to serve the purpose.

For management, tourist recreation in cross-culture environment conceptualised as the system and various elements involves product element, markets and elements. Management analyses the relationship between the functions (elements) to determine tourist preference and movements. (Howie, 2003)

2.4.2 Organisation and tourism management

Costa, Panyik and Buhalis (2013) stated that organisations need to recognise the heterogeneity involve in provision of tourist product. The attractive facilities coherence, diverse element of tourism as well as cohesion of user interest is important in development of tourist product. Culture occupy central place in organisation and part of characteristic of modern organisation. The difference between low and high culture develop the pattern of consumption. Tourism elements allow the companies to capture and attract number of product to satisfy customer needs.

Bhatia (2006) added that tourist combines different attractions and facilities depending on the knowledge, motives and preferences. The supply of tourist product and attractions need to manage through time, space, and organisation analyse the non-spatial behaviour to make tourist aware of environment and impulses. Organisation created complex network and environment influences allows developing tourist product.

For organisation, cross-culture activity network, which manage the preference of tourist as well as information networks to analyse the process of decision-making and activity in cross-cultural context (Evans, Stonehouse and Campbell, 2012).

Section B: Theories and models of cross-cultural management

2.5 Trompenaars and Hampden-Turner framework

Patel (2013) studied the Trompenaars cultural dimension are universalism vs. particularism, individualism vs. communitarianism, inner and outer direction, specificity vs. diffuseness, sequential vs. synchronous and achieved vs. ascribed status. The value dilemma is based on opposing values and thus, it is important to reconcile for value creation. The first dilemma exist is particularism (differences) and universalism (similarities). The cultural dimension involves rules, laws and generalisation whereas cultural dimension involves exceptions and relations.  For example, section of supplier based on the rules and procedures and personal relations. (Piaget, 2013)

Christiansen (2014) stated that the reconciliation of two factors provide win-win situation. The individualism and communitarianism enclosed the dimension on which success and achievement on the individual and group level. The individualism dimension described through attributes such as self-reliance and self-interest and collectivism is associated with social concern, cooperation and public services. (Christiansen, 2014)

Specificity and diffuseness elaborate the dilemma between positivist, rational and holistic integration. The sign of dilemma offer differing paradigm between Chinese Confucianism and Rationalism in the UK. Thus, one culture is strongly specific whereas other represent slightly specific. Achieved and ascribed status describes how status accorded. One position in life is determined through achievement (skills, intelligent and hard work).

In developed countries, achievements are preferred over ascription. On the other hand, in China ascription is preferred over achievement. Inner and outer direction defines the virtue located inside or located outside. (Appelrouth and Edles, 2008)

For instance, Christiansen (2014, p.547) Trompenaars quoted the example of Alexander and Sun Tzu. Alexander was great leader known for his strategic planning and confidence in resource deployment. On the other hand, Sun Tzu (2015) has known for thought though the situation. The empirical results shows that the UK is inner directed whereas China is outward orientated. Sequential and synchronous time give insight on how culture is perceives and administers time. Sequential is non-recurring whereas synchronous is recurring and time orientated. The empirical analysis shows that China and Hong Kong is synchronous and in the UK sequential orientation.  (Sitkin and Bowen, 2013)

2.5.1 Strengths and weaknesses of model

Trompenaars offer the concept of reconciliation of value dilemma through identifying and discussing dimension of culture. The approach is useful to integrate qualitative and quantitative data, which offers better insight on cultural dimension and consistency. However, sample may represent difficult and incomplete result which difficult to interpret. (Patel, 2013)

2.6 Hofstede Model

According to Hofstede (2001), power distance defines social structures and deals with how inequality handled in society. The four dimensions of Hofstede construct are power distance, individualism, masculinity and uncertainty avoidance. For example, power distance between subordinate X and manager Y in hierarchy is difference between extents from which managers determine the behaviour of employee and vice versa. The difference between authority, power and influence is provided by Mulder (2000) and (Hofstede, 2001).

Bono and der (2011) reviewed Power distance refers to the capacity to influence and influence is process through which agent influence the target. The outcome is linked with influence process is compliance and commitment. Manager ranked lower on power distance index than unskilled work and thus professional chosen homogenously. Power distance is related to the supervisor and subordinate relationship and in the context of the national culture in the split between elitist and pluralist. For instance, the diagram below shows power distance is low (35) in the UK when to compare to high power distance in China. (Bono and der, 2011)

Hofstede Model - UK vs. China

Figure 4: Hofstede Model – UK vs. China

                                                        Source: Hofstede (2016)

Ting-Toomey (2012, p.71) uncertainty avoidance refers to comfortable people feel in the uncertain situation. Culture tanked lower feel much comfortable than unknown. High uncertainty avoidance prefers for formal rules and uncertain leads to anxiety when to compare with lower uncertainty avoidance culture. The uncertainty avoidance does not correlate with the profession. Uncertainty avoidance is different from risk avoidance. Uncertainty avoidance deals with unknown and related anxiety where risk is associated with something precise and risk can be quantified. The diagram above shows that uncertainty avoidance is lower in both China and in the UK. (Piepenburg, 2011)

Individual and collectivism refer to an extent in which culture acknowledge association with individual or group achievement. Individualist prefers recognition for accomplishment whereas collectivism recognition for the accomplishment of the group. Hofstede found that there is no correlation between individualism/collectivism with gender, age or occupation. For example, the diagram shows that individualism scores are very high in the UK whereas collectivism is high in China whereas collectivism is high in China. (Triandis, 1995)

In addition, Groth-Marnat (2009, p.246) added that culture with high masculine score marks distinct expectation from the male rather female.  Feminine culture represents greater ambiguity in terms of what is expected from gender. The gender score in China and in the UK is same. The later added dimension to Hofstede model is short-term and long-term orientation. The long-term orientation includes perseverance and relationship by status. On the other hand, short-term orientation highlights steadiness and stability, respect for tradition as well as greeting and gifts. (Samovar, Porter and McDaniel, 2011)

2.6.1 Strengths and weaknesses of model

The strength of Hofstede model is that it offers rigorous research design through coherent theory and systematic data collection. The result enables to understand the attitude and beliefs of people in organisation at national level. On the other hand, weakness of model is sophisticated stereotyping which reduces culture to few dimensions and does not convey holistic understanding of the phenomena. The sample selection and culture at certain time gives different results. The resistance against change is not readily accepted and predicting individual behaviour through national culture is difficult. (Piepenburg, 2011)

2.7 Cultural differences and Service organisation

Cox (1994) analysed that cultural difference influences the interaction between the visitor and service provider. Tourist makes an impression and judgement about host through interacting with personnel. Miscommunication between the tourist and host leads to unpleasant experience and unfriendly attitude. Cultural differences affect the relationship between service providers and guest that shape the attitude of tourist. For example, in China host ignore the expectation of guest and escort them everywhere as symbol of courtesy but this leaves little opportunity for guest to experience Chinese lifestyle in personal. (Diller, 2013)

In the UK, hospitality considered as lack of trust and intrusion. The differences include gender, religious, social system and ethic manners. Cultural differences influence social interaction among individuals in organisation with different cultural background. The cultural differences result in error and miscommunication, which result in confusion and misunderstanding. The expectations of standard and cultural pattern affect interaction. (Mok, Sparks and Kadampully, 2013)

2.8 Cultural intelligence to manage cultural differences

Thomas and Inkson (2009) added that cultural intelligence focuses on people capabilities in the construct of human resource management, especially cross-cultural environment. Cultural Intelligence construct include social intelligence, practical intelligence and emotional intelligence. Cultural intelligence is defined as the capability of individual to function and manages effectively in the diverse cultural environment. Intelligence is the ability to grasp the abstraction to resolve the problem in a precise manner. Cultural intelligence narrows the ability to resolve the problem and it focuses on content domains. (Earley and Ang, 2003)

David (2009) analysed that cultural intelligence elaborates the way people thrive and adapt when in the environment which is different from socialised. In the business context, culturally intelligent leadership makes better decisions in cross-culture context as well as communicate and negotiate in an efficient manner in the foreign market and motivating employees from various cultures.

Cultural intelligence includes capabilities in the cross-culture environment. Cultural intelligence highlights the abilities to shape, select and adapt to the environment and i.e. reflect the ability to interact as well as work with other people. Cultural intelligence describes interaction with people in diverse culture environment as well as highlight situations characterised by cultural diversity. (Earley and Mosakowski, 2004; Herrmann et al., 2007)

2.8.1 Multidimensional construct

Multidimensional construct for cultural intelligence based on based four dimensions, which are cognitive, metacognitive, behavioural and motivational. Cognitive cultural intelligence is based on knowledge of norms and practices in diverse cultural settings acquired through personal experience. Cognitive dimension includes knowledge of economic and social system enclosing different culture and value system. In addition, metacognitive is personal awareness and consciousness of cultural values during interaction with people from different culture. (Thomas et al., 2008)

Ang and Dyne (2008, p.318) highlighted that metacognitive elaborate processes use to understand and acquire cultural knowledge and thus, people question own assumptions, reflect on these assumption develop knowledge and skills to interact with people from different cultural environment.

Moreover, motivational cultural intelligence is the ability to attract attention for learning to manage the situation in cultural difference environment. High motivation enclosed intrinsic interest in cross-cultural context and reflect high self-efficacy. Behaviour cultural intelligence refers to capability to exhibit level of verbal and non-verbal behaviour to interact with people in cross-culture environment. (Van Dyne, Ang and Livermore, 2010)

Section C: Tourism Management and Cross-cultural Management

2.9 Tourism industry – People and culture

Higgins-Desbiolles (2006) elaborated that tourism services provided by the people and i.e. they are part of service experience and process. The behaviour of service provider and consumer can enhance or ruin the service experience. Cultural tourism is not limited to high art classic estalishment but involve attraction and cultural product include everyday attributes of oridnary individual. Tourist participate in wide range of activities which are peripheral to travel resaon.

Mckercher (1996) added that particular activities are made until tourist arrive at destination. The service provider (employees) skills, knowledge and emotion define the experience of customer. The provision of service in responsible, caring, attentive and honest manner enhances the customer experience. The characteristic of the service provider influence customer perception and determine overall quality of tourism product. The need for cross-cultural management arises because of diversifying present at workplaces but in the case of tourism industry there is a great diversity as compared to diversity present in any other firm. (Ekinci and Hosany, 2006)

Hsu, Woodside and Marshall (2013) highlighted that cultural tourism involves two typologies which shape the context of tourist motivation. Abstract culture in which production culture moves towards high culutre and embedded culutre highlighting living culutre to everyday culture. Tourist moves from passive side towards consumption culture. (Lutz, 2005)

Cultural intelligence in cross management context highlight characteristic for personal adjustment and maintenance of interpersonal relationship across the cultural complex environment and achievement of the organisational objective. Tourists need to enjoy their time utmost, for this purpose, a quality communication is  essential in which a person does not just receive or transfer information but there must be a mutual understanding of culture as well.

There are different reasons due to which people travel, most of the times people are travelling because of health reasons like in order to increase health recovery or at times they want to explore earth and feel the beauty of nature. This is the reason that many interactions are noticed in tourists and tourists firm. political instability, national defence porpoises, tightens of foreign investment policies and other terrestrial issues. (Reisinger, Dimanche and Reisinger, 2010)

2.10 Culture and Social interaction theory

Cote and Levine (2014) added that social interaction known as personal interaction between people under certain circumstances. The features of social interaction are rules, goals, cognitive structure, language, sequence of behaviours and environment setting. The success of social interaction is based on individual motivation to interact and follow accepted rules of behaviour through knowing rights and obligations. Individual knowledge and understanding in specific context in which interaction occurs define the quality and experience of service. (Sarason, 2013)

According to social interaction theory, individual goals motivate the social interaction and rules used to regulate social interaction so goals can be achieved. The roles determine the obligations and repertoire of elements represent verbal and non-verbal behaviours. The concept and cognitive structure defines the individual needs to processes and environment is in which interaction occurs.

Moreover, the language of individual allows understanding what is happening and how to behave in particular situation. The skills and difficulties defines the competencies need to carried out the task and achieve the objectives. (Craib, 2015; Mercer and Howe, 2012)

2.10.1 Cultural context and social interaction in tourism

Schwartz (2012) stated that cultural values influence the social interaction and determine motivation for participation, interest, interactions, importance of personal goal, personal attractiveness and communication style of individual or groups. Resources and reward shared in social interaction have better value when perceiver familiar with value. Culture encourages the development of specific attitude towards people and attitude influence development of social relations.

The positive attitude leads to active social relation whereas negative attitude tended to be less active. Negative attitude creates stereotypes, antagonistic relationships and prejudices. If a person is prejudice then it is less likely to involve in interaction. (Pearce and Packer, 2013)

Culture encourages the development of perception of people. Positive perception among the people enhances social interaction whereas negative perception tends to reduce value of social interaction. The cultural familiarity and similarities tend to facilitate the interaction because it reduces the uncertainty. People tend to develop social relationship with people within same cultural group rather those with different culture background. The culture similarity is important factor to decide the social interaction. (Mok, Sparks and Kadampully, 2013)

2.10.2 Intercultural context and types– Social interaction

Craib (2015) added that intercultural interaction involves face-to-face encounter between the people/individual from different cultures. Intercultural interaction usually involves individuals with different cultures and the cultural difference is based on value, perception, expectation, rule of behaviour and communication style. The different types of intercultural interaction involve individuals from same background, different background but relative small differences and different background with large differences. In first type, individual share cultural commonalities and have similar background. (Vijver et al., 2015)

The level of interaction is effective and individual understand each other in team. In third type of interaction, individuals have large cultural differences and interaction less efficient and compatible. The increase cultural differences lead to misinterpretation and misunderstanding because distorts behaviour perception and exchange of information become less effective.  (Chipchase et al., 2012)

2.11 Means-End Chain theory (MEC) in cross-culture context

Kim, Kim and King (2016) proposed that MEC is widely used to understand the consumer behaviour through expectancy value theory. MCE describe the relationships in hierarchy between product attributes, consequences for attributes consumer as well as personal values that reinforce these consequences. Attributes are the aspect of services provided by the company. Consequences depict the result accruing for consumer as well as values learned beliefs and guiding principles to define the behaviour of individual. The motivation of individual elaborate expected consequences and reasons desired.  (Kim, Kim and King, 2016)

Means-End Chain theory

Figure 5: Means-End Chain theory

Source: Kim, Kim and King (2016)

MEC reveal the underlying assumptions, attributes and consequences to cognitive structures. Values, attributes and consequences represent different motivation layers and provide framework to understand the consumer behaviour. In tourism context, MEC theory is useful to understand the person values and explore tourism motivation.  Identification of motivation, attributes and values offers better understanding of customers. (Matook, 2013)

Bhatia (2006) added that social interaction is influence through cultural differences when individual have different culture background. The difference in cultural dimensions is affect through pattern variables, cultural patterns and value orientation. The cultural dimension is important to understand the behaviour and communication in diverse culture context and manage human relationship. The social interaction affect the ABC individual perception and cultural differences affect cross-cultural interaction communication. (Bono and der, 2011)

2.11.1 Behaviour of tourist and MEC

The behaviour of tourist plays fundamental role to elaborate discussions. Casual mechanism knowledge has critical role in participation and behaviour to improve the capabilities of demand and travel model. The behaviour of tourist consumer is complex because it involves dynamic environment, social interaction, discretionary and future orientation. Tourist behaviour evaluation includes identification of initial needs and assessment of tourist needs consumption.

The range of variables affect the behaviour of tourist is social influences, social stimuli and financial constraints that shape consumption experience and decision making process. The consumption process viewed as rational and logical that satisfies the needs of tourist in utilitarian sense. (Aycan, Kanungo and Mendonca, 2014)

McCabe (2002) added that tourism has become part of everyday life and it is difficult to differentiate between leisure and domestic activities. Tourist are looking for experience as well as searching for something new when travelling to enrichment of everyday activities. In globalised world, homogenous and standardised practices are less likely to satisfy the needs of tourist and diverse activities are required to meet the needs of customers.

The functional consequences are important such as visiting places and desire to leisure for important in order to meet the psychological need of customer. (Dowling, Festing and Engle, 2008)

Section D: Cross-cultural management and performance

2.12 Cultural Performance theory

Diamond (2015) stated that culture performance theory is useful to understand role of culture in activity and it offers conceptualisation by placing culture message and revealing hierarchy structure through experiences. Performance is centre to human communication and offers value insight. Performance implies practices, act of doing, and explore the relationship between individual, groups and culture.

Cultural performance involves discrete event, which are observable and understood in cultural context. Culture as process highlights that human communication through performance is on-going and ever changing rather static. (Shepherd, 2016)

Davis, Parkes and Budhwar (2013) elaborated that culture represents the sum of total values and beliefs and way of life to develop cultural blueprint. Culture enables to design and discover new ways and i.e. negotiating meaning for the social context. Human communication embedded in culture and cultural performance elaborates how human participate and contribute in cultural and political in expressive and creative ways.

Cultural performance enclosed human activity as well as embedded human communication to provide framework to assess the identity, subjectivity, power structures, sexuality ideologies, class and ethnicity. Cultural performance depicts engaging and symbolic exchange. (Banes and Lepecki, 2012)

2.13 Relationship between Cross-culture and Performance management

Performance management is an integrated approach to achieve objectives of organisation, sustain competitive advantage through improving performance of employee, and develop capabilities of teams. The rationale of performance of management is that it is employees (human capital) provide competitive advantage.

Therefore, the purpose of performance management is motivating employees for performance through removing intermediates barriers. Competitive capacity of organisation is build and develops through managing and developing employees. (Aycan, Kanungo and Mendonca, 2014)

Elliot and Nakata (2013) added that the organisational cultural is key to good performance and due to cultural differences same strategies do not delivers same results between the two organisations competing in same location and industry. The positive culture affects the ABC the performance of individual and groups through increased motivation whereas negative culture demotivate employee to undermine the performance. Organisation culture have direct and active role in performance management. Cross-cultural management research involves three levels of analysis, which are individual, group and organisation level. (Dowling, Festing and Engle, 2008)

2.14 Cross-cultural individual and Team performance

Shin et al (2012) analysed the cross-cultural team management is important aspect of organisation because of local specificity and global orientation to manage the heterogeneous business units. A cross-culture team involves team members who perceived themselves different from each other and distinguish in subgroups. Cross-cultural team differentiate themselves from other teams in terms of importance and task complexity.

Moreover, leadership challenges are evident in global companies and Peterson (1997) added that cultural diversity involves difficult discretionary task that require innovation. The team and work groups in organisation are based on performance.  The difference between team and workgroups is that workgroup have lower performance compare to team.

IIn workgroup, collective outcome is result of individual efforts while in team results are exponential for individual outcome. The diagram below shows the goals and requirement of team (Katzenbach and Smith, 1993; Moran, Abramson and Moran, 2014)

Cross-cultural individual and Performance

Figure 6: Cross-cultural individual and Performance

Source: Abramson and Moran (2014)

In above model, three goals for individual and team are personal growth, performance result and collective work. Management set measureable target to evaluate results in order to give rationale why team exist. The individual is responsible for personal growth and it is important that goals of individual aligned with team goals. (Chen et al., 2013)

In order to achieve these goals, the team need skills and accountability. The interpersonal skills to resolve problems and functional knowledge are critical to assign task and achieve objectives. Individual efforts are necessary during conflict or difficult tasks. The sense of responsibility among the team is important for accountability and task allocation.

Power distance influence the relationship between commitment and participation and empirical result shows culture moderates the participation of individual. (Perry-Smith and Shalley, 2014)

Cross-cultural individual and Team performance

Figure 7: Cross-cultural individual and Team performance

Source: Perry-Smith and Shalley (2014)

Moreover, Dyer and Dyer (2013) added that in culturally contingent context, diversity decreases the satisfaction and commitment of individual in the group as well as resistance moderates the impact of culture. The individual and collective efforts are culturally contingent with personal growth and accountability varies according to dimension of collectivism and individualism. The two important factors, which determine the performance, are multicultural dynamic and task complexity.

Adler (1991) analysed the effectiveness of cross-cultural groups and found that multicultural teams are more or less productive than single culture teams.  The problems faced by cross-culture teams are perceptual problem (stereotyping), attitudinal problem (stress and mistrust) and communication problems. (Chipulu et al., 2014)

2.15 Cross-cultural leadership and performance

Caligiuri and Tarique (2012) added that leadership is ability of an individual to motive and influence other to contribute towards the success of organisation. In cross-cultural context, leadership environment consist of selection of effective leadership style in changing culture. Leadership attributes, which are culturally contingent, are under analysis and effectiveness of transformational and situation leadership is explored. The role leadership in an organisation is to influence relationship, intend changes and influence mutual purpose, align people, set direction as well as motivate and inspire people for achieve desire outcome. (Chhokar, Brodbeck and House, 2013)

In cross-cultural context, leadership is associated with power, influence and performance. According to trait theory, the personal attributes of leadership are integrity, intelligence, knowledge and job-relevant. The behaviour traits of successful leadership involves; efforts to inspire followers, communicate need of performance, supportive behaviour, verbal recognition, direction towards goals, participative decision making, goal setting as well as encouraging conflict resolution. (Caligiuri and Tarique, 2012; Takahashi, Ishikawa and Kanai, 2012)

Dunn, Dastoor and Sims (2012) added that transformational leadership and performance is based on five traits, which are courage and motivation, value-driven, courage, ability of deal complexity, vision as well as ambiguity and uncertainty. The characteristic of transformation leader is characterized through influence, motivation, intellectual stimulation and individual considerations. The influence means capable and determined and results delivered are trusted and respected.

Motivation highlights the ability to inspire the followers through optimism vision of future. Intellectual stimulation encourages the followers to answer assumption, reframe problems and innovation. Individual consider highlight the potential to create new opportunities, mentoring and attention for followers needs. (Hoch and Kozlowski, 2014)

On the other hand, Sultana et al (2013) situation leadership theories enclosed three contingences that are followers, characteristic and situation. In this context, situation and task are not fixed and an aim is to select right leaders for the right task. The unique effectiveness of leadership style is task orientation (dedicated) and leaders impose methods for result without resentment. In task and people-oriented context, motivator set standards and focus on need of individual. People-orientated approach highlights implicit trust in people and concern developing talent. Low people and task orientation represent autonomy for subordinates and leaders have minor part in social interactions. (Caligiuri and Tarique, 2012)

Chapter 3: Research methodology

This chapter of study enclosed the research method used to achieve the objective of the study. The aim of the study is to explore the implication of cross-cultural management on the performance of ABC horizon in China. The success of the research linked with a selection of appropriate research design and strategy. The qualitative approach selected to understand the role and perspective of ABC manager to understand how cross-cultural management contributes towards the performance of the ABC horizons.

The research strategy adopted in this study is ‘Case study’, which allows examining and exploring the data from multiple sources and presenting a holistic perspective. The data collection managed through conducting semi-structure of ‘two managers’ of the company.  (Bernard, 2012)

3.1 Research philosophies

According to Maykut and Morehouse (2002) research philosophy elaborate how to source and develop the knowledge. It enclosed the belief and process through which data is collected and analysed to examine the phenomena. Moreover, positivist approach is associated with quantitative approach whereas phenomenological approach is linked with quantitative approach. (Maykut and Morehouse, 2002, p.4)

3.1.1 Positivistic Philosophy

Mackenzie (2010) addded that the positivistic approach allows to explore and determine faABC of social phenomena. It is largely deployed in social sciences for identification and quantification of the particular problem. The positivistic approach uses a highly structured method and research instrument are design to quantify the phenomena. The positivistic approach is useful to explain the social phenomena but it  antedates the occurrence and control of a situation.

In positivistic approach, the relationship between the variables is explored and confirm the hypothesis using deductive approach. The strength of positivitic approach is that it allows explaining the social phenomena as it exists without the interference of people. On the other hand, weakness of positivistic approach pays little approach to the subjective state but rather an emphasis on the social event and elaborate the causes behind the event.  (Maykut and Morehouse, 2002)

3.1.2 Phenomenological philosophy

Phenomenological philosophy is used to studying the human actions in the social context through involving people who experience the event or phenomena. It allows understanding the experience of the people and social reality through directly exploring the social context and give meaning to social reality.

Phenomenological philosophy allows developing and enhancing the understanding of the real world problem through interpreting the situation. Researcher interacts with people in social context and understanding the experience of people from the event. (Edgar, 2004)

Smith, Flowers and Larkin (2009) proposed that the two approaches to explore and studying the social reality are interviews, in which researcher has a direct conversation with the participants or indirect approach which involves observation through people experiences.

The strength of phenomenological is that it useful to explore the social realities and useful when the researcher cannot separate itself from the scenario. The weakness of Phenomenological philosophy is that respondent influence the outcome of the researcher as well as personal bias of researcher. (Smith, Flowers and Larkin, 2009)

Research philosophies

Table 2: Research philosophies

3.1.3 Suitability of phenomenological philosophy for this study

For this study, phenomenological philosophy is useful to investigate the human behaviour through conducting the semi-structure interviews of the managers. Phenomenology is useful to understand the experience of the managers of ABC horizons through directly exploring the social context and give meaning to social reality. The semi-structure interviews of the managers allow developing and enhancing the understanding of the real world problem through interpreting the situation.

The researcher focus is on the implication of cross-culture management on performance and managers in the social context and understanding the experience of people from the event. In addition, interviews of two managers are useful to conduct in-depth investigation of phenomenon in light of literature and construct the meaning.

3.2 Research Approach – Inductive Vs. deductive research

Nestor and Schutt (2014) highlighted the importance of selection of appropriate research approach. The inductive approach involves building the theory through generalisation of data. It involves narrow down of the concept and presents the findings. The inductive approach allows analysing and generalising the phenomenon using the open-end question to explore the social reality. Inductive approach is useful for the researcher when the researcher has limited existing knowledge and starts the new phase of research.

The inductive approach allows narrowing the finding and present holistic perspective through new theory. The strength of inductive approach is that offers researcher flexibility to test the data rather confirm the hypothesis.  (Drummond and Embree, 2013)

On the other hand, Bryman and Bell (2007) analysed deductive approach is used to confirm the hypothesis through testing the theory. Deductive approach explains the hypotheses, which are test and confirm in the theory propositions. It is concerned with deductive the conclusion based on the theory proposition testing against the observations. Deductive approach is preferable when there is abundance of resource whereas inductive approach is suitable when there is limited data available for specific problem. (Bryman and Bell, 2007)

Inductive Vs. deductive research

Figure 8: Inductive Vs. deductive research

Source: Bryman and Bell (2007)

3.2.1 Usefulness of inductive approach for this study

For this study, inductive approach is used to understand the implication of cross-culture management on the performance of ABC horizon in China. The inductive approach is useful to examine the managers’ perspective on cross-cultural management and analyse the situation to understand implication for the performance of the company. The inductive approach is useful to narrow the data collected through semi-structure interview and test the result to present the theory. Therefore, in this study, inductive approach is used to start the research and develop holistic perspective through narrow down the findings.

3.3 Research Strategy – Case study Approach

According to Yin (2013), a case study is useful and offer flexibility, which allows the researcher to understand the problem from the different perspective and present holistic perspective. Case study is useful to study the contemporary phenomenon in the social context when research boundaries are blurred and multiple sources are available to study the problem.

Case study is the effective way of doing social research through interviews and observations. Case study is useful to provide descriptive of social scenario in the social context and the problem is analysed in the wider context through flexibility offered by the case study based on descriptive account. Case study is useful to analyse range of variables to examine how and what scenario. (David and Sutton, 2004)

3.3.1 Usefulness of Case study for this study

Yin (2013) elaborated that case study is suitable based on three conditions. The first condition is the type of research question. The second factor is researcher need to control the situation and the third factor is contemporary event involved. A case study is appropriate to conduct preliminary study and implication of cross-culture management in ABC horizons lack specific information.

The research aim of the study is to explore the how situation to elaborate the implication of cross-culture management on the performance of ABC horizons. For this study, case study allows maximising the learning using the unit case as the critical factor. The case study approach for this study is useful to analyse the implication of cross-culture management through conducting multiple interviews of managers and analyse the border perspective. (Johnson, 2004)

3.4 Research design – Qualitative vs. quantitative approach

According to Creswell (2013) the important difference between quantitative and qualitative approach is methodological order and selection of suitable approach is based on objective and need of researcher to achieve the objective or research.

3.4.1 Qualitative approach

A qualitative approach focused on developing the understanding of the problem in social context. The focus on the qualitative approach is exploring the relationship between the variables through direct involvement of researcher in the investigation. Qualitative research ensures to conduct an investigation using metaphor and description of things. The qualitative approach offers flexibility through developing a better understanding of a situation. The usefulness of qualitative approach is that it takes less time to analyse the situation and interpret the results. (Miles, Huberman and Saldana, 2013)

The strength of the quantitative approach is that variables are analysed to understand the problem through analysing the reason of the problem. The qualitative approach is useful to understand the problem through directly examining the problem and analyse the human experience in the social construct. The data is managed through open-end question and responded influence the outcomes. (Creswell, 2013)

3.4.2 Quantitative approach

Sale, Lohfel and Brazil (2002) added that the quantitative approach is useful to study the causes and effect through examining the relationship between the variables. The quantitative approach allows confirming the hypothesis though quantification of selected variables and present result through statistical interpretations.

The quantitative approach is useful to measure the relationship between variables by exploring characteristic, concept and meaning of things. Quantitative research is useful to measure the outcome of variables. The quantitative approach is useful to quantify the relationship using numerical and analyse the variables. Quantitative research deploys rigid structure approach for collection of data using close end questions. (Tracy, 2012)

Qualitative vs. quantitative approach

Table 3: Qualitative vs. quantitative approach 

3.4.3 Rationale for selection – Qualitative approach

For this study, a qualitative approach selected to analyse the implication of cross-culture management on the performance of ABC horizons. The qualitative approach offers flexibility to analyse the manager’s role and perspective using the semi-structure interviews and developed a better understanding of a situation. The usefulness of qualitative approach is that it takes less time to analyse the situation and interpret the results. In addition, case study approach allows analysing data of multiple respondents. Inductive research is useful narrow the data and present holistic perspective for cross-cultural implication.

3.5 Data collection and analysis

Data collection is an important part of research. Data reliability and accuracy is critical for success and outcome of research. There are two types of data, which are primary and secondary data. (Kothari, 2004)

3.5.1 Secondary data

Secondary data plays an important role to understand the problem and find information to achieve the objectives of study. For this study, literature review is an important source of secondary and it collected through books, journal articles and ABC documents. Secondary data is useful to answer the research and achieve the objectives. However, the objective of this research requires collection of primary data as secondary data alone cannot achieve the objectives of research. (Denzin and Lincoln, 2011)

3.5.2 Primary data

Primary data is a data, which collected to answer the research question. Primary data is useful to answer the specific research problem and it increases the reliability and validity of research. For this research, primary data collected using the semi-structure interviews of the managers at ABC horizons. Interview as research instrument are useful to collect primary data and explore the belief, opinion and attitudes of the respondents. The interviews of ABC managers are useful to explore the implication of cross-cultural management. (Pawar, 2004)

3.6 Research instrument – semi-structure interview

Mishler (2009) stated that interviews are useful to understand the experiences and meaning from the respondent as it happens in real life. The benefit of interviews is that it useful to identify and elaborate the meaning of the situation. The interview is the direct conversation with people and respondent convey meaning and expression. There are three types of interviews, which are unstructured, semi-structure and structured interviews.

The usefulness of unstructured interviews respondents has full flexibility and researcher have little control over the situation. In addition, semi-structure offers guidelines about topic and question of the study. Semi-structure interviews are useful to deeper perspective about the problem. Structured interviews involved rigid structure and fixed question, which does not offer flexibility to respondent. (Seidman, 2013)

For this study, semi-structures used to collect primary data from the managers. The semi-structure allows developing better understanding of the implication of cross-culture management and performance of the ABC. (Wrenn, Stevens and Loudon, 2013) For this study,

3.6.1 Sampling and target population

Sampling is important to phase of data collection and it involves selection of target population from the whole population. The sampling enables the researcher to represent the perspective of larger study population based on reason and logical of research objectives. The advantage of sampling is that it reduces time and cost. Sampling represents the perspective of the whole population without studying entire population. (Brace, 2013)

For this study, ‘quota sampling’ is used which is useful to determine the size of a population based on fixed quota. The practical implication attached to this study is that it is difficult to conduct the interview of among a large number of the manager. Therefore, only two interviews conducted. Research is currently working in ABC horizons, which has allowed conducting interviews. On the other hand, interview of Chinese manager is conducted over the Skype and managers reached through social contact in China. (Flick, 2014)

3.8 Question for interview

Table 4: Question for interview

 Questions for interview

ObjectiveDescriptionQuestion Setting

(in Appendix 1)

Literature Support

1To investigate the significance of cross-culture management contribute towards performance of ABC horizonsQuestion no. 1

Question no. 2

 

 

Schneider, Ehrhart and Macey (2013); Goldstein (2015); Sagi (2015); Hofstede (2001); Trompenaars and Hampden-Turner (2012); Vijver et al (2015) ; Thornton, Ocasio and Lounsbury (2012); Evans, Stonehouse and Campbell (2012); Abramson and Moran (2014)
2To examine the influence of cross-culture management on tourist motivation in selecting ABC horizons for tourismQuestion no. 3

Question no. 4

 

 

Trompenaars and Hampden-Turner (2012); Bono and der (2011); Van Dyne, Ang and Livermore (2010); Reisinger, Dimanche and Reisinger (2010); Pearce and Packer (2013); Chipchase et al (2012); Dowling, Festing and Engle (2008); Banes and Lepecki (2012); Katzenbach and Smith, (1993); Moran, Abramson and Moran (2014)
3To evaluate current cross-culture management system in ABC Horizons and its effect on performance of ABC horizonsQuestion no. 5

Question no. 6

 

 

Thomas et al (2008); Herrmann et al (2007); Dowling, Festing and Engle (2008); Shepherd (2016); Bono and der (2011); Caligiuri and Tarique (2012); Takahashi, Ishikawa and Kanai (2012); Chhokar, Brodbeck and House (2013)

4To make conclusion and recommendation for cross-culture management for improvement cross-culture performance of ABC horizonsChapter 5Conclusion and Recommendation Presented

 

3.9 Ethical consideration

The privacy and confidentiality of respondent kept at top priority during the data collection. There is no personal information of respondent is collected during any part of study and respondent made informed of data usage and consent before the interview. The data collected kept in strict confidentiality and no competitive information or data collected to protect the confidential information. In addition, data collected kept in strict privacy and control. (Redmon, Mawhinney and Johnson, 2013)

Chapter 4: Data analysis and finding

This chapter of study enclosed the finding and result of data collected through interview of managers. Data analysis involves evaluation of interview results, visual presentation and discussion of finding in light of literature review. The data analysis managed through two important stages, which are data reduction and drawing conclusions. To ensure reliability and validity of the finding, ‘Triangulation’ is used which allows analysing data from the wider context and present holistic perspective.

Triangulation allows evaluating the interviews from two respondents and developing the holistic interpretation. The nature of this study is exploratory to evaluate the implication of cross-cultural management on the performance of ABC horizons. For confidentiality reason, the information related to company competitiveness not enclosed as well as not personal information is involved during the time of analysis due to circumstances of company.

Question no. 1

The first question of interview was design to understand the cultural context of ABC horizons and its implication for the company. The cross-cultural dimension explored to understand relationship, motivation and attitude in cross-cultural context. CCM1 responded that in UK power distance is low, low uncertainty avoidance, low institution collectivisms, low future orientation but high performance orientation.

On the other hand, CCM2 highlighted that power distance is low in China, high uncertainty avoidance, high institution collectivism, high future orientation as well as low focus on performance orientation. The focus of question is to explore the Hofstede cultural dimension and performance orientation of ABC horizons. The results show that Employees in China have emphasis on collectivism and future orientation whereas UK has lower future orientation and collectivism with emphasis on performance.

Schneider, Ehrhart and Macey (2013) added that organisational culture involves beliefs and assumptions, attitudes and behaviours of the employees. These value orientations highlight the differences between the two cultures shows individual and organisational level analysis has significant gap. The individual level of analysis is a conditioning process and differences between paradoxical assumption leads to destabilise relationships and create anxiety.

The collectivism dimensions particular at organisational level allowed gaining insight on employee motivation and behaviour in cross-cultural context. This shows the degree to which employees feel proud of their work and prefer to deliver team performance. The collectivism and future orientation is high in China that highlights the commitment to the organisation.

Hofstede (2011) elaborated the relationship between power distance and individualistic. Goals assigned and accepted in high power distance culture when compared with low power distance and collectivism culture.  The implication of goals setting better managed in participative environment such as UK whereas it is difficult to assign goals in China context because of high power distance. CCM1 added, “Low power distance in the UK has allowed predefining the gaols and systematic approach”.

On the other hand, CCM2 added, “high power distance in China is associated with decisiveness of manager and quick decision making”. Cognitive and motivation involve individual process that is relevant to organisational behaviour.

Dowling, Festing and Engle (2008) added that cross-cultural management research involves three levels of analysis, which are individual, group and organisation level. The individual characteristics allow understanding the importance of communication and problem solving skills to manage the diverse organisation environment.

The operating environment determines activities for the success of organisation and business environment have the greatest influence in shaping corporate culture. In team orientation, collectivism culture better assessed and team orientation in Chinese context.  Piaget (2013) elaborated cultural dimension involves rules, laws and generalisation whereas cultural dimension involves exceptions and relations.

The cultural dimension allows elaboration of leadership style and implication for performance. In high power distance, country manager role related to performance of employee. The difference between individual motivation and organisation setting affect the role of individual in organisation. The performance orientation is high in the UK but lower in China.

Cultural dimension gap between future orientations shows ABC horizons management in China orient towards the future where when compare to UK. Moreover, high uncertainty avoidance shows focus on rules and regulation to control behaviours. The level of accountability and commitment is lower in collectivism culture. Collectivism allows understanding team performance and team contribution towards the objectives of ABC horizons.

Question no. 2

The goal of second question is to understand the individual characteristic and team performance value in ABC horizons. The rationale of performance of management is that it is employees (human capital) provide competitive advantage. Vijver et al (2015) highlighted that individual level of analysis is a conditioning process, which starts with implicit value and Trompenaars model become a focal point of human actions and interactions. The question is useful to elaborate the individual and team role for better performance.

The objective is to evaluate the individual characteristics and traits important for the performance of firm. Cote and Levine (2014) added that social interaction known as personal interaction between people under certain circumstances.

CCM1 highlighted that planning and organising skills, assertiveness and problem solving arte three important variables for commitment and accountability of employee. These are features of social interaction are rules, goals, cognitive structure sequence of behaviours and environment setting. CCM2 added that assertiveness and problem solving with less emphasis on planning.

Perry-Smith and Shalley (2014) stated cross-culture team involves team members who perceived themselves different from each other and distinguish in subgroups. Problem-solving skills and assertiveness are two important variables ranked by the manager to ensure individual contribution and commitment.

CCM1 added, “Individual efforts are necessary during conflict or difficult tasks” whereas CCM2 elaborated, “interpersonal skills to resolve problems and functional knowledge are critical to assign task and achieve objectives. Individual team member role is commitment and resource investigator. The cultural characteristic of team member in diverse culture allows understanding of behaviour and skills for better team performance. The role of manager in cross-cultural context is controller and implementer of the process and system.

To analyse the performance team in cross-cultural context, three variables communication skills influence and team orientation explained by the managers. Chipulu et al (2014) the problems faced by cross-culture teams are perceptual problem (stereotyping), attitudinal problem (stress and mistrust) and communication problems.

CCM1 added that ability to integrate with team and engage in teamwork is important skills and team orientation is important to resolve conflict. Moreover, influence in the group and participation in the team is important to influence and manage the performance. For communication, CCM1 stated ability to communicate clearly is most important factor to performance effectively in cross-culture team”. The role of members in team is innovator and promoter of company interest.

On the other hand, CCM2 highlighted that ability to create message and solution-orientation manner is important for effective performance. In addition, “team orientation involvement attainment of group goals and attain collective results”. To conclude team role in cross-cultural context is assessor and controller in Chinese context.

Question no. 3

The third question of study was design to understand the social interaction and determine the effect of personal skills and communication on tourism and relationship management and contribution towards the performance. Importance of personal goal, personal attractiveness and communication style of individual or groups elaborated in this question. CCM1 added that cultural values are important to understand how different individuals contribute to objectives of organisation. The behaviour skills such as body language and the way talk to people is important in diverse culture environment.

Reisinger, Dimanche and Reisinger (2010) added that tourists need to enjoy their time utmost, for this purpose, a quality communication is  essential. The effectiveness of cross-cultural groups and found that multicultural teams are more or less productive than single culture teams. Chinese expatriate demonstrate behaviour cultural intelligence in dealing with customer and meet the needs of tourist.

Culture encourages the development of specific attitude towards people and attitude influence development of social relations based on social experience. These experiences allow integrating and communicating with team members and staff.  CCM2 added, “focus is on understanding the behaviour and motivation of people and figure out culture differences”. In China, trust is important variable and once trust is developing, they start listening to needs and problems.

CCM2 added experience of expatriate social experience is important to involve in the team and deliver positive results. Cultural leader role is to manage the cultural barriers through experiences and bring together the team for better performance. Mercer and Howe (2012) stated that language of individual allows understanding what is happening and how to behave in particular situation.

The response of CCM1 made it evident the need of communication skills for social interaction and effective leadership. Communication barriers in cross-cultural context hinder the performance, as people do not share common codes and backgrounds. The common barrier in cross culture context is language. Management needs to develop cultural effective product to meet the demand of tourist attraction.

However, communication challenges hinder the tourist product management. Culturally intelligent manager develop behaviour for common understanding. CCM2 added that cross-culture communication requires balance for integration and explanation because cultural difference the logical reasoning as well as behaviour of people.

Question no. 4

The question four of study designed to understand the tourist behaviour managed in cross-cultural context to satisfy the needs. The behaviour of tourist consumer is complex because it involves dynamic environment, social interaction, discretionary and future orientation. Bono and der (2011) added that the social interaction affect individual perception and cultural differences affect cross-cultural interaction communication.

The managers asked to elaborate how identification of initial needs and assessment of tourist needs consumption managed in cross-cultural context to ensure on tourist motivation in selecting ABC horizons for tourism. CCM1 stated that cultural difference among the people result in variation of customer needs and satisfactions. Tourism has grown as sophisticated industry and motivation as well as behaviour of tourist has become important to deliver tourist product, which satisfy the need of customers.

The increase cultural differences increase the difficulty of communication with customer. Communication gap between employee and customers because of cultural differences result in difficulty to interpret behaviours. Intercultural problems dissatisfy the customer because of lack of right tourist product and services. Moreover, it added that cultural differences affect the behaviour and relationship between the employees and consequently poor performance in workplace. Tourist behaviour is difficult in cross-cultural context and failure to manage the motivation and expectation of consumer alginate the customer and sense of exclusion of developed.

CCM2 added that in case of expatriate manager’s cultural difficulties influence behaviour and performance which result in lower performance. In china, culture considered in historic context and conflict is common in multicultural workplace. The behaviour of tourist is social influences and social stimuli that shape consumption experience and decision making process. The role of leadership is to realise the changing needs of the customer and workforce to recognise and understand the behaviour of customer.

Sarason (2013) added that Individual knowledge and understanding in specific context in which interaction occurs define the quality and experience of service. Cross-cultural team should develop relations and leadership provide support to deliver service to meet the needs of customers. It is important to provide an environment of understanding to gain trust of customers. Self-motivating individual contribute to performance of team and manage tourist expectations. Cultural intelligence is important to develop cross-cultural knowledge and overcome the barrier of cross-cultural context in ABC and understanding of cultural values and beliefs of team member’s affect ABC the cultural performance of ABC horizons.

Question no. 5

The fifth question of interview was design to understand the role of cultural intelligence in adaptation and influence on performance of ABC horizons. Earley and Mosakowski (2004) cultural intelligence describes interaction with people in diverse culture environment as well as highlight situations characterised by cultural diversity. CCM1 stated that cultural intelligence is useful to understand how certain things done and way of doing things. Stereotyping is evident in the UK and social interaction is cultural differences and interaction less efficient and compatible. Cultural differences lead to misinterpretation and distort behaviour perception, which make information less effective.

CCM2 added expatriate manager in China are willing to learn Chinese culture are open-minded and accept cultural specific habits. Sarason (2013) added that individual knowledge and understanding in specific context in which interaction occurs define the quality and experience of service. The emphasis given to learn Chinese culture and differences and respondent agreed to achieve adaptation in certain way. The analysis at personal level highlighted that employee makes efforts to adapt to environment. The motivation and attitude towards influence the social structure. CCM2 highlighted “cultural intelligence is about learning situation and find out as well as understand people”.

CCM1 stated that cultural adaptation motivation is important to understand cultural differences and knowledge to adapt to situation in cross-culture context. It is important to understand the differences between the cultures to adapt to culture and self-motivation. There is stronger need to understand the Chinese values as well as western values for better result and productivity. CCM2 stated, “Chinese values allow helping the customer in better way and western style enables to develop suitable tourist product”. The important factor is tolerance and patience to adapt in cross-culture environment.

Thomas et al (2008) metacognitive is personal awareness and consciousness of cultural values during interaction with people from different culture. The need of behaviour skills is important to adapt to host culture setting which allows to develop good relationships assumption develop knowledge and skills to interact with people from different cultural environment.

CCM1 added that experiences from Chinese expatriate develop through behaviour skills allow to deal with customers and develop product, which meet the need of customer. Behaviour adaptation is useful to develop capability to exhibit level of verbal and non-verbal behaviour to interact with people in cross-culture environment.

Question no. 6

The sixth question analyse the role of leadership and its effect on the performance of the ABC horizons. The goal of question was to analyse how different leadership style attribute to team and organisational performance. The question designed to assess culturally contingent practices and universal attributes of leadership. The managers asked to elaborate characteristic for better team performance and leadership style contribution. CCM1 highlight that effective leadership style requires autonomous, proactive and planning approach.

On the other hand, CCM2 added that in China autonomous and proactive behaviour is less important with focus on sensitive nature and initiative of manager. Moreover, the result has highlighted that dynamic and intelligence nature has equal importance in both cultures. Leadership is associated with power, influence and performance. Manager response was that personal attributes of leadership are integrity, intelligence, knowledge and job-relevant.

The response of managers has showed differences on variables, which are autonomous, sensitive nature, planning proactive approach and initiative. The differences in cross-cultural context highlight the difference in leadership style in China and UK.

The attributes discussed by the managers have showed different result in two environments. CCM2 added, “Proactive and autonomous approach is lower in the China but emphasis is on the sensitive and honest”. On the other hand, CCM2 added the importance of autonomous function and planning in the UK context. Dunn, Dastoor and Sims (2012) added that characteristic of transformation leader is characterized through influence, motivation, intellectual stimulation and individual considerations.

In the UK, manager adapts the transformation leadership to ensure the motivation and behaviour of employee and deliver product that meet the needs and preferences of tourist. On the other hand, Sultana et al (2013) situation leadership based on task is not fixed and an aim is to select right leaders for the right task. In China, managers prefer play a role contingent to situation to ensure the performance.

The response of managers has highlighted the leadership attributes to manage the performance of the company in cross-culture context. The culturally contingent element is evident in the Chinese context. Leadership style in China is less provocative and accountability but more sensitive. To summarise, the response of two managers has allowed summarising the behaviour and attitudes of managers in a cross-cultural context.

In the UK context, leadership is open-minded and project orientated as well as stereotyping is common. Leadership is the focus on planning, functions and performance. On the other hand, in China, hierarchy is important and different means sought to achieve objectives of the organisation. The relationship concern is high in China and adapts cognitive communication style. The cultural contingent variables examined are sensitive, autonomous and proactive approach.

Chapter 5: Conclusion and Recommendation

5.1 Conclusion

This dissertation explores the cross-culture organisation context of tourism company ABC horizons. The aim of the study was to identify and evaluate the implication of cross-culture management on performance of the firm. The construct of study was to identity the cross-culture management and impact on performance, tourist motivation management to select ABC horizons effectiveness of cultural performance system.

The data collection for this study managed through interviews and result validation using the triangulation and case study. The result has highlighted a number of differences in cultural dimensions and performance of ABC horizons in China. The qualitative exploration and inductive approach have allowed summarising the result and evaluating the cultural differences, which affect the performance of the firm.

The cultural dimensions highlight low collectivism and high performance in the UK but in China, performance orientation focus is low but better teamwork.  Cross-cultural implication highlight that three important variables of cultural performance are planning and organising skills, assertiveness and problem solving. The study outlines the role of behaviours, skills and attitude of individual and teams in cross-cultural context. The cultural dimension and skills have direct effect on cross-cultural management practices.

The two important factors explore is role of goal setting and cultural dimension influence is explored in this study using the Hofstede framework. The study explores the importance of individual and organisational level, which has provided useful analysis of cross-cultural management. The study evaluates different perspective of cross-cultural management including team and leadership role in cross-cultural management.

Cultural difference reduces productivity and morale and cultural awareness is important to minimise conflict and increase performance. This study examines the wider perspective of cross-cultural management and includes behaviour and attitude effect on the performance. The Cultural difference among the people results in variation of customer needs and satisfactions. Tourism has grown as sophisticated industry and motivation as well as the behaviour of tourist has become important to deliver tourist product, which satisfies the need of customers. Cultural intelligence is important to develop cross-cultural knowledge and overcome the barrier of cross-cultural context in ABC and understanding of cultural values and beliefs of team members affect the cultural performance of ABC horizons.

The cultural difference and behaviours have a difference that leads to difficulty in interpretation of behaviours. The large difference in cultural dimension and skills shows the need of heterogeneity, which is a separator of two cultures. ABC needs particularism approach to managing the cultural difference for improves performance. The result highlights that the UK as low context and individualism culture has less emphasis on collectivism and long-term orientation. The cultural difference highlight that proactive and autonomous approach is lower in the China but the emphasis is on the sensitive and honest.

The research has involved cross-cultural for both low-context and high-context culture.  Cultural contingent variables examined are the sensitive, autonomous and proactive approach. In the UK context, the leadership is open-minded and project orientated as well as stereotyping is common. Leadership is the focus on planning, functions and performance. On the other hand, in China, hierarchy is important and different means sought to achieve objectives of the organisation. The relationship concern is high in China and adapts cognitive communication style.

The data shows that high vertical individualism in China context. To conclude the Trompenaars dimension of Ascribed vs. Achieved and results shows that leadership in China based on hierarchy whereas in the UK performance is basis of leadership. Moreover, the achievement orientation culture in latter context. In addition, reviewing another dimension of Trompenaars diffuseness and specify in cross culture context. The result shows that China has specified focus whereas in the UK diffusive culture prevails.

The Hofstede dimension for this study elaborated that in the UK power distance is low, low uncertainty avoidance, low institution collectivisms, low future orientation but high performance orientation. On the other hand, power distance is low in China, high uncertainty avoidance, high institution collectivism, high future orientation as well as low focus on performance orientation. The results show that in the UK intellectual autonomy is high along with low hierarchy, which allows pre-defining goals and focusing on performance orientation. To summarise, cross-culture management better assessed at organisation level and cultural evolution needs adaptation to support decision-making for cultural performance.

5.2 Recommendation

  • ABC should emphasise on performance orientation in the Chinese subsidiary and promote collectivisms in the UK to improve cultural performance.
  • ABC should address the cultural dimension gap of future orientation through focusing on planning and organising skills, assertiveness and problem-solving skills.
  • ABC should address the cross-cultural communication gap to over cultural barrier result in difficulty to interpret behaviours through providing cultural training.
  • ABC improve social interaction and reduce cultural difference through addressing stereotypes issues and increase performance.
  • ABC need to promote planning and proactive approach to addressing cultural contingent variable for improving performance.

5.3 Limiation of this study

The study is exploratory in nature and the cross-cultural implication is explored from the manager’s perspective. The study is qualitative and primary data is collected through semi-structured interviews of the two managers at ABC horizons. However, lack of access to contact wider staff has the restraint to conduct the questionnaire in the company. The manager interview in the UK is line manager of research and communicate with a subsidiary in China. The manager interview in the China is reached through personal contact.

The primary data collected is important to analyse the cross-culture practices from manager perspective. Cross-cultural research requires multiple research strategies for better empirical assessment as well as interviews enclosed elicit response and behaviours. However, mix methodology would have allowed to conducted a survey to understand the cultural activities in the ABC horizons wider perspective.

Moreover, the study is less suitable to draw valid results from secondary data sources because lack of secondary data available for review the cross-culture implication allows drawing limited results.

5.4 Direction for future research

The future research direction includes knowledge assimilation in cross-culture context to reduce cultural differences as well as improve the implicit and explicit knowledge. The dissertation outlines some implicit knowledge areas for cross-culture management. Another significant area of research involves the exploring cross-management construct with and planning to improve the performance of organisation. Moreover, virtual teams’ role in the cross-cultural management can further analyse and explored. The study outline the role of behaviour construct but contingent variables can be further analysed in the cross-cultural context using the explanatory research.

 

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7.0 Appendix 1

7.1 Questions for Interview

Question no. 1

Please share you experiences of cross-cultural dimensions (power distance, uncertainty avoidance, collectivisms, future orientation and performance orientation) and its importance in strategic and operational management as well as its effect on performance of ABC. Which culture level analysis is important for effective culture performance?

Question no. 2

How important individual characteristic and interpersonal skills is important for effective team and how you manage your team performance in cross culture context. What context, actions and result achieved?

Question no. 3

Please share your experience how social interactions affected cultural differences and cultural problems, which affect ABC.  In addition, how motivations, communication and behaviour of individual and team members contribute to cultural performance of ABC.

Question no. 4

How tourist behaviour managed in cross-culture context to manage the motivation and expectation of consumer to select ABC horizons?

Question no. 5

How cultural intelligence contributes in adaptation, influences on performance of ABC horizons, and contributes towards the individual and team performance?

Question no. 6

How leadership contribute and effect on the cultural performance of ABC through leadership style and team management?

 


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