BGA | BUSINESS IMPACT
CULTURAL DIFFERENCES
One further cultural phenomenon that influences interpersonal relationships at work is called ‘ guanxi ,’ defined by Kwang‑kuo Hwang in Face and favor: the Chinese power game as the connections between individuals, reciprocity and the need to exchange favours. This exchange results in a kind of social glue that holds societal functions and interpersonal relationships together. Guanxi impacts on the formation, development and maintenance of trust in Confucian-influenced countries such as China and Japan. With guanxi , trustworthiness is assigned to an individual who can keep their word; as Izak Benbasat and Weiquan Wang outline in Trust in and adoption of online recommendation agents , this perspective on the trustworthiness of others leads to a dislike for the use of legal contracts in business dealings. Instead of legal contracts, these cultures prefer to establish trust at a personal level, according to An empirical study of overseas Chinese managerial ideology , compiled by SG Redding and Michael Hsiao. Chinese workers may prefer to rely on the relationship, thereby skirting the need to appraise trust in their colleagues. The Chinese might also describe trust in more affective terms, associating trust more closely with the relationship developed with another person and how they view their obligations to each other, as per The problem of trust by Adam B Seligman. In Chinese organisations, members of a tight knit ‘in-group’ may be close friends who consider members of an ‘out-group’ to be competitors for limited resources. In-group members, therefore, depend preferentially on other members of the same group. Sensitive by nature When teaching, it is important to be aware of both cultural and political differences, since the trust construct impacts business, international politics, economics and trade. Canada, for example, recently banned two of China’s biggest telecom equipment makers, Huawei and ZTE, apparently to “protect the safety and security of Canadians” and to safeguard its telecommunications infrastructure. This means that telecoms firms in Canada will no longer be able to use equipment made by Huawei and ZTE due to “national security concerns”. Implying that safety and security are at risk is a statement of distrust. However, Huawei has argued that this decision was rooted in national politics, in violation of free market principles, and the Chinese government has condemned the move against its national champions as a form of “political manipulation” carried out in co-ordination with the US, aimed at suppressing Chinese companies. Moreover, in a strongly worded response to the banning of Chinese equipment issued last May, the Chinese Embassy in Canada argued that the Canadian government was “acting in collusion with the US to suppress Chinese enterprises” and that “Canada’s so-called security concerns are nothing but a cover for political manipulation”. The Huawei case illustrates how perceived trustworthiness in business has become conflated with national politics. Disputes such as this introduce personal and professional risks that graduates, educators and professionals need to weigh up.
Takeaways of trust When choosing to trust others, we might want to take a leap of faith. However, this may expose us to unnecessary risks and sometimes we would be better advised to play it safe. Trusting others means accepting some degree of vulnerability; our gut instinct can be misleading, making us more vulnerable to risk. Be sensitive to the political angle, as trust and politics are often interlinked. Do not be afraid to distrust others: trust may only offer protection and improve performance if that trust is placed wisely. Before you decide to trust others, it is important to first verify what they say and reflect on the cultural differences when evaluating their trustworthiness. When deciding to trust another person, always consider their ability, benevolence and integrity.
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Richard Galletly is a senior lecturer of leadership and human resource management at the University of Law Business School, with more than 10 years’ experience in higher education. He holds a professional doctorate in education from the University of Liverpool. Galletly’s research focuses on the psychological contract within mixed-culture organisations
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