The cultural dimension as a variable in international construction marketing: a competitive advantage perspective.

 

Mark Hall

 

 

 

 

 

 

 

The author is a member of the Agile Construction research team at The School of Management, University of Bath.

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Proofs and communications to be sent to Dr Mark Hall,

School of Management, University of Bath, BATH, BA2 7AY, U.K.

e-mail: M.Hall@bath.ac.uk

 


The cultural dimension as a variable in international construction marketing: a competitive advantage perspective

 

 

Keywords: international construction marketing; national cultures; competitive advantage.

 

 

Abstract

Marketing of overseas operations has become an increasingly important activity for international construction enterprises.  With a changing client base and increasing levels of competition from organisations from both developed and developing nations, construction enterprises have to vigorously promote their services and products both at home and abroad.  

 

When marketing their services and products internationally, successful enterprises must form a strategy that allows for cultural differences.  This is because the products and services they promote comprise tacit knowledge.  Tacit knowledge provides a competitive advantage but its successful application is complicated by cultural differences.  This paper sought to establish how construction enterprises marketed their services in culturally different environments.

 

Drawing on data from interviews with key decision-makers in a diverse range of UK-based construction enterprises (both contractors and consultants) with international interests, it was found that marketing was considered to be a very important issue for all the companies.  Further, the cultural dimension was recognised as an important variable and it was found that cultural differences were tackled in a variety of ways.  The main strategy was to avoid local cultural problems by careful client targeting and forming close relationships with local partners.  This cultural avoidance (or ethnocentric) approach fails to harness organisations’ full potential as it fails to place competitive advantage within a cultural context.    

 

 

Introduction

Marketing has now become a high profile activity for construction organisations everywhere.  Recast as more than mere advertising and promotion, it now has an important place in many construction corporations’ strategic policies, and is seen generally as contributing directly to corporate performance (Narver and Slater, 1990).  At a basic level, international marketing simply refers to a company operating in more than one country whose marketing strategy in each has been deliberately chosen (van Mesdag, 2000).  Indeed, Hand (1998, p. 55) suggests that until recently, ‘marketing’, as a separate business activity, was largely an unnecessary:  “[a] well known name and a good estimating department was basically all that was required to win international construction work”. Today, however, the international construction client base has changed. Clients are less likely to be multi-lateral funding bodies and government organisations and more likely to include developers, financial organisations and other construction enterprises (Chapman, 1998).  Additionally, the market is no longer the preserve of firms from the developed world.  Construction companies from developing and ‘emerging’ regions of the world have firmly established themselves in the international marketplace and are vigorously competing for their own market shares. 

 

In this increasingly competitive global environment, with a changing client base, marketing is about promoting corporate competitive advantage (Porter, 1986).  Competitive advantage derives from many sources but can be reduced to the effective application of knowledge (Bender and Fish, 2000).  Given that knowledge is ‘culturally bound’ (Hofstede, 1991), it would seem necessary for construction enterprises operating internationally to design and implement marketing strategies that accounted for the cultural differences they encounter.  This paper reports on, the extent to which culture was considered an important variable when British construction enterprises formulated their marketing strategy for their international services.  The ways in which construction enterprises accommodate this factor within their international marketing strategies is also explored.  The aim was to seek common aspects of marketing strategies employed by British construction companies operating internationally with particular reference to the cultural dimension as it impinged ion their projection of competitive advantage.

 

 

The cultural dimension as a variable in competitive advantage

Successful international operations depend upon the ability to transfer competitive advantage (Bender and Fish, 2000; Porter, 1986).  International construction enterprises have traditionally relied on the exploitation of, for example, superior technical expertise, historic market connections and tied inward investment and aid packages (Linder, 1994; Strassman and Wells, 1988; Drewer, 1990).  However, Yates (1994) observed that these traditional competitive advantages were being rapidly eroded.   As they diminish, those construction enterprises that wish to maintain their market share will have to seek, transfer, promote and exploit different, less traditional competitive advantages (Bon, 1997).

 

There are many sources of competitive advantage that companies can enjoy.  They can be classified, for example, in terms of the activities and functions of the firm’s value chain, types of assets (resources), types of skills (capabilities), order-winning criteria, generic strategies adopted by the firm and so forth (Hymer, 1976).  Hu and Warner (1996), however, collect these into two broad groups.  Firstly, there are those which lie at the interface between the company and it’s customers.  These include price, product quality and range, reputation, speed and timeliness of delivery and financing.  Secondly, there may be advantages associated with the company itself: “what it is, what it does and what it has” (p. 379).  These include specific attributes, activities, assets, skills and internal and external relationships.  At both levels, cultural factors can impinge on the company.  For example (p. 380),

 

national … culture affects both the quality and speed of service, it effects the way the firm sees itself and does things and it also affects the speed and frequency with which new products and processes are brought to fruition and then to market.

 

In industries characterised by rapid technological progress it is internal, company-specific factors that matter most.  However, where that company operates in an industry characterised by relatively slow technological change, the interface with the customer is correspondingly more important.  It is in these industries that marketing is vital to continued survival and growth.  According to Ball (1988, p. 27-28) construction enterprises would fall into this latter category as: “[t]he building industry does not correspond to the environment of a factory and, as a result, it is concluded that the building industry is doomed to relative technical stagnation” (see also Yates, 1994). 

 

The nature of the competitive advantage is overlaid by the fact that many of the advantages have a cultural component, or can be recast in terms of culture (Joynt and Warner, 1996). Moreover, because culture differs between different societies, its importance in international competition is particularly pronounced (Hill, 1998).  In the case of the construction industry, this is implicitly linked to the interface with the customer and, thus, it is on the nature of competitive advantage that attention must focus. 

 

Specifically, a distinction can be made between competitive advantage derived from ‘codified’ knowledge and that derived from ‘tacit’ knowledge.  Codified knowledge is that which can easily be expressed in terms of procedure.  Thus, mechanics, engineering and construction technology is codifiable.  Tacit knowledge is that which is less easy to express as formulae or procedure and typically includes aspects such as skills, managerial ability in general, people management policies specifically, and the use and understanding of technological concepts (Gyekye, 1995).  Codifiable knowledge (such as operating instructions, standard procedures, computer programmes, predictive models, formulae or blueprints) is relatively easy to transfer, as it tends to be less ‘culture-dependent’ than tacit knowledge (that is person- or institution-embodied knowledge).  This is because employee and consumer behaviour is effected by cultural values and tacit knowledge is dependent on that behaviour and those values – in other words, it is ‘culture-bound’ (Hofstede, 1991).  Hu and Warner (1996) characterise codified knowledge as approaching ‘zero-transfer cost’.  Tacit knowledge, on the other hand is difficult and costly to transfer because (p. 387-388):

 

·         Tacit knowledge is complex (because, by definition, it involves the ability to deal with complexity).  Furthermore, it is context-dependent and, if the background is not understood, it is difficult to interpret.

·         Tacit knowledge is acquired through experience and ‘trial and error’.  Thus, it may take many years and a great deal of human capital in order to accumulate tacit knowledge.

·         Tacit knowledge is taught (and learnt) through demonstration, observation, imitation, practice and feedback.  This requires close personal contact over a prolonged period of time which, in turn, presupposes linguistic and cultural affinity and geographical proximity (Maffesoli, 1996).

·         Organisational learning and the tacit knowledge that results is often collective in nature.  Because it does not reside in a single person, transfer becomes even more problematic.

·         The tacit knowledge being transferred may not be static but continuously evolving.

 

However, for many industries, sustainable competitive advantage lies in the area of tacit knowledge.  While knowledge is far from the only competitive advantage which is transferable (for example, the ability to provide finance or a market for the finished product is also important) it often features prominently and is certainly the main reason expatriate staff are required (Bender and Fish, 2000).   This would seem to be the case within the international construction industry.  Here, Western construction professionals are valued in developing countries as much for their ability to introduce novel procurement and managerial solutions to construction projects and for their ‘professionalism’ as for their technical ability (although this too is often highly valued) (Hall and Jaggar, 1998; Stallworthy and Kharbanda, 1985; Elton, 1985; Bidgood, 1980).

 

 

Construction marketing using cultural synergy

As tacit knowledge forms a prominent part of their competitive advantage, construction enterprises must find ways to overcome the inherent culture-bound nature of that knowledge if they wish to transfer and market it in a useful form in different cultural environments.  Adler (1983) outlined three approaches a firm could adopt when faced with a culturally diverse situation.  These are outlined in Table 1 below and provide a useful typology for describing a specific organisation’s or individual’s attitude when confronted with the dynamics of a culturally diverse scenario.

 

Thus, in attempting to market a construction firm’s tacit knowledge overseas, an ethnocentric approach would be to codify as much knowledge as possible. However, “[a]dvantages based on skills, competences, capabilities, know-how, technology, expertise and so on cannot be reduced entirely to codified knowledge or information” (Hu and Warner, 1996, p. 387).  Therefore, a more effective approach might be to consider which advantages would transfer best to what cultural environments.  This synergistic balancing of tacit competitive advantage with cultural profile would provide construction enterprises with a strategic basis for deciding in which countries they market their operations.

Table 1  A typology for cultural perceptions

 

 

Thus, if their company reputation were well-known in a given country but all other aspects of operation would be prohibitively difficult, a construction organisation might just licence it’s name to an indigenous company operating in broadly the same field and markets.  Similarly, that same company may find many of its domestic competitive advantages readily transferable to a different country where the culture is less distant.  Here they may wish to set up a regional office and recruit and train local staff.  Thus, what has relevance in one cultural environment may have little or no relevance in another.  Clearly, such a ‘competitive advantage’ perspective has important implications for the marketing of construction services within different cultural environments.  At its most basic, marketing entails matching the company offerings to an identified need (Morgan, 1990).  But where the company offerings are modified and changed by cultural differences, the marketing approach must be sensitive to such changes. 

 

 

Research question and methodology

In light of the above argument, when marketing their services beyond their domestic base, successful construction enterprises would have to give careful consideration to the cultural dimension.  However, it would seem that this is unlikely to be the case.  Shaw (2000), in a large study of German companies, found that the general strategic approach, for both successful and less successful companies, to marketing operations and activities in another country was likely to be ethnocentric in character.    Anecdotal evidence suggesting that this is also true for the construction industry.  This paper set out to explore the proposition that construction enterprises adopt an ethnocentric approach in marketing their services internationally.  Beyond this, however, the research sought to ascertain a detailed understanding of exactly how construction enterprises regarded marketing at the international level, the extent to which cultural issues were considered to be important and how they impinged upon the marketing function.  With this goal, the methodology had to be explorative rather than deductive in nature.  To this end, it was decided to adopt a methodology similar to that used by Merrilees and Tiessen (1999), who sought to build generalizable theories of international marketing from depth case studies (see also Eisenhardt, 1989). 

 

A multiple-case design was chosen, with the units of analysis being semi-structured interviews with 14 key decision-makers.  The cases were a number of diverse, UK-based construction enterprises (see Table 2). The interviews had, as their focus, the issue of culture generally within the international construction environment.  It emerged that a major aspect for the interviewees was that of marketing internationally.  The cases were selected specifically with


Table 2  Case Study company details

 


the aim of reflecting a range of experience across the industry.  Thus, they included organisations with little overseas activity, some with a great deal of overseas activity and some with a moderate amount of overseas activity.  This provided a ‘longitudinal’ feature to the research and served to enable generalisation using replication logic.  The sampling approach for the cases stemmed from the eventual analysis approach (Hall, 2000). 

 

 

Analysis

The data collection resulted in the recording and transcription of 14 interviews with senior managers from the seven construction enterprises.  Initially, the transcripts were read in conjunction with the recordings and analysis notes made where appropriate.  The data, gathered and contained within the transcripts, were then deconstructed and divided into an analysis structure using the NUD*IST computer-aided analysis software package (see, for example, Fielding and Lee, 1998 for more information).  The deconstructed data fragments were coded and gathered into a coding structure comprising 20 categories. These are listed, in no particular order, in Table 3.  The table lists the number of interviewees who discussed or mentioned each issue, the number of ‘text units’ coded against each issue and the amount of coded text units per interviewee (coding frequency). The coded text units and coding frequency are ranked to give an indication of relative importance.  It must be stressed, however, that this is only an indication of importance as the data were qualitative in nature.  Therefore, the importance (and, indeed, purpose of the research) comes through improved understanding of the issue.

 

The demographic details of the interviewees and their companies were held elsewhere in the coding structure.  This allowed the discussion within the interviews to be matched across various case-based characteristics to identify emerging patterns.  The coding structure arose partly from the predetermined interview schedule.  However, the interviews were semi-structured in nature and, consequently, a number of unanticipated themes and issues emerged, both during the interviews themselves and through a process of induction during reflection upon the interview recordings and transcripts.  Where these were found to be both interesting and relevant, they were incorporated into the coding structure.

 

The findings are presented in a discursive format, drawing on appropriate quotations from the interviews to clarify and illustrate particular discussion points.  The data were initially analysed on a case-by-case basis with the case data being brought together and synthesised to allow cross-case findings to emerge.

 

 

Findings

At an individual level, the interviews showed that people responsible for developing and implementing strategic decisions for the international marketing operations of their construction organisations had a varying appreciation and understanding of the potential impact of cultural differences and, consequently, responded to the issue in different ways.  Interviewees in Case Study Organisations B and C showed that the way marketing decisions were implemented in relation to culture appeared to be modified as the responsibility for implementation of those decisions was delegated down the hierarchy.  Managers in fairly senior positions had a great deal of control over the interpretation of strategy, once they found themselves on overseas postings.  If they considered culture to be of importance to them, they could act in a sensitive and accommodating manner or not as they deemed appropriate, often without feeling restricted by corporate strategy and policy.  An explanation for this could be that, in most of the cases, there was little marketing strategy or policy, as such, that addressed the issue of culture.  Although most of the interviewees recognised it as an issue they could not identify many specific marketing activities designed to allow for


Table 3  Coding structure and frequency


cultural differences.  Where marketing policy and strategy did allow for cultural differences, this was implicit rather than explicit.  Examples of implicitly allowing for cultural differences within marketing strategies included:

 

·         pursuing work that was funded by ‘reliable’ sources,

·         engaging local companies as ‘partners’ in the knowledge that they would be able to deal with any local cultural difficulties

·         or by pursuing ‘international’ clients governed by familiar, supra-cultural policies of their own.

 

In contrast, the three interviewees representing Case Study Organisation E, were able to indicate a variety of strategies that not only allowed for cultural differences within their marketing approach, but positively embraced them.  Indeed, for this organisation, cultural differences, both within the organisation itself, and within the environments in which it worked, contributed overtly to its competitive advantage.  Indeed, the company actually emphasised cultural differences rather than seeking to minimise or remove them.  Through this emphasis, it was able to find synergies that allowed the company to offer its client-base a distinct and special service.  As such, the policy of embracing and using cultural differences relied on its marketing strategy.  While the company had limited activity outside Europe, the interviewees stressed their identity as members of a global organisation.

 

The first thing I would say is that ‘global’ doesn’t mean you operate in every area of the world. Being in every country in the world may mean you’re an international organisation but it doesn’t mean you’re a global organisation. To be global and work globally is actually about thinking and about a whole approach to business and the changing nature of business – that’s the difference between global and international.

 

However, this was not the case for all consultancies.  The other case studies involving consultants, both quantity surveying practices (Case Study Organisations C and F), indicated that neither had any specific policies in order to accommodate the cultural differences they faced.

 

One aspect that was of importance to many interviewees was that of ethical differences.  Here, the distinction between contractors and consultants was more marked.  For the consultants, the issue of lowered ethical standards was one they were unwilling to discuss.  However, when they were drawn on the subject, they noted that the reputedly high ethical standards of British construction professionals were of benefit in their overseas business dealings.  Clients readily trusted them and where ethical integrity was of importance, they had a competitive advantage compared to consultants from some other countries.  They were keen to incorporate this perceived competitive advantage in their marketing approach.  For example, one interviewee, working for Case Study Organisation F, made the following comment:

 

In a way, it works for us. One of the reasons people like to have Brits more is that we do export integrity. There’s still the view that if a British quantity surveyor tells you that is what it is, then that is what it is. Clearly in the Middle East particularly (most of the countries outside the UK in fact) there’s a different kind of ethics, commercially. We manage to steer clear of it professionally but we’re aware that it goes on. Sometimes it goes on at the highest level – government to government or international oil company to international oil company right down to “if you want a work permit I’ve got it here”! But that’s why you have local partners, to deal with these matters.

 

For contractors, the issue of ethical differences was more complex. While they were required to exhibit the same high ethical standards demanded of construction professionals working for consultants, the interviewees working for contractors tended to express more ambivalence where the topic was discussed.  Perhaps, contractors’ staff are more exposed to ethical differences.  Certainly, it was suggested that the ethical standards of contractor’s staff were far from immutable when they were in the field, despite the dictates of head office (indeed, this was one area where contractors appeared to have a clear policy with regard to cultural differences).  Some interviewees were outspoken in their exasperation with the difficulties that ethical differences presented both to their organisations as a whole and to the individual staff representing their companies’ interests overseas.  The problems of reconciling a company with ethical standards reflecting UK cultural norms, with those one could expect to encounter internationally, were so intractable, that one interviewee was led to see international work as being too problematic.  Indeed, it was seen as such a problem, that the interviewee (representing Case Study Organisation G) had considered withdrawing from international work altogether. 

 

I mean, the tragedy of some of these places, and Nigeria was, perhaps, the worst, is that you have a good guy in UK, you send him over to Nigeria and before he’s been there a year he’s either broken by resisting – ‘dash’ is the word they use for bribery – either resisting ‘dash’ or receiving it. And, you know, you can ruin bloody marvellous guys by sending them out to some of these awful places. And that was the tragedy of Nigeria for us (apart from the loss) was the good guys – we ruined them by sending them out to Nigeria. You have to be very brave, you know, when you’re an office manager on a contract out in the wilds, you have to be very brave to resist the pressures or very upright to resist corruption. It’s dreadful.

 

Similarly, the ethical standards demanded by Case Study Company A were such that they were prepared to eschew certain locations around the world on the basis of the prevailing ethical standards of those locations.  The interviewee for this company remarked:

 

Going back to the fact that [company name] is family-owned, there is a high ethical standard here. We insist that all our joint venture partners sign up to the US Foreign and Corrupt Practices Act. And so we don’t do some of the things that other companies do who don’t have the same moral standards that we have. And so, in certain countries where that’s a fact of life, and without which you’re not going to win work, then its an issue, to the point where sometimes we’ve walked rather than stay. If it’s a fact of doing business that you’ve got to throw a lot of brown envelopes about then that’s a factor for us, which generally turns us off.

 

Clearly, the ethical dimension had an important influence of international construction company marketing policies.

 

Other common themes that emerged from analysis of the case studies included a focus on the specific client base that have been referred to as being international, i.e. blue-chip, multinational conglomerates. Even those companies that had traditionally focused their attention on local clients (such as Case Study Organisation B) were ‘refocusing’.

 

We are constrained by what we've built in the past. These vehicles that we built years ago are difficult to dismantle, because of the Arab mentality, in the Middle East, where they like long-term relationships and the same people for a long time. They don't like change in that respect, from a business aspect. So, in some ways, we are constrained by the businesses that we formed.

 

A number of reasons for this shift in focus were given:

 

·         the ability and willingness of international clients to pay,

·         their appreciation of higher levels of service offered by UK construction organisations

·         and the ability of local competitors to provide many of the basic services that local clients might require. 

 

However, a by-product of this strategic approach was to reduce the respective organisations’ exposure to the risks presented by cultural differences.  While it would be overstating the findings to say that this was a specific aim of the policy of targeting international clients, it was certainly an element in the overall goal of reduction in risk exposure internationally, reflected in international marketing policies.  This is because cultural differences were seen as a risk that rather then being managed in a synergistic manner was to be avoided or minimised.   

 

Another commonality that emerged was the desire by all the organisations to project a corporate identity in their activities overseas.  The interviewees considered their corporate culture to be an important element of their corporate identity.  Their main tool in achieving this was the expatriate and, hence, despite the high, almost prohibitive, cost of expatriates, they remained an important element of the international activities of all the companies participating in the research apart from Case Study Organisation E.  For the consultants in the study, expatriates were also important as they represented their company’s service.  Clients were buying the service they, as individual expatriates, were providing.  This differed with the contractors, who were selling a constructed product that was produced through what were, as many of the interviewees stressed, well understood techniques and procedures.  In this sense, the consultants had a distinct competitive advantage over their contracting colleagues in that they had more opportunity to demonstrate the added-value of their services.  Consequently, they had more to gain from understanding culture from a marketing perspective, and at a strategic level than the contractors in the study.

 

Finally, niche activities seemed to be important to most of the organisations.  For example, Case Study Organisation A saw its ability to capitalise projects as being important. 

 

… its sad to say that sometimes, companies such as ours are deemed to be a better bet for loans than some countries are. So we can get the money at a better rate than some countries. So it is attractive to them to have companies like us actually going in and taking these burdens off them. It sometimes comes down to who can get the cheapest loan. The technology is pretty well known throughout the world. Operating and maintenance follows well-worn paths. And so if everybody is at the same [technological level], it’s the smart ideas and perhaps the innovative financing that will win you the day.

 

Similarly, Case Study Organisation D focused on its technical excellence in civil engineering..  Context could be important.  The company’s technical specialism was in civil engineering, a service often required in remote locations.  Additionally, due to the high levels of competition in some overseas locations, such as the Middle East, which limited those regions’ viability, the company targeted locations that were more ‘difficult’.

 

…I think what happens on the larger projects in lousy places is that everyone works for the project. …we have all sorts of nationalities because we have people who have come through [company name] with different backgrounds, we have people who have come through [partner company’s name] who are from the former … colonies, so we have all sorts of people. It's like the French football team! It doesn't matter because people are there because they have the right skills and everybody has regard for their colleagues’ skills and everybody works for the project. If you're in the jungle working on building something, then the concentration is on getting it built properly. And I think the issues which might come up here don't come up in the jungle.

 

For these organisations, their niche skills subsumed cultural differences.  By contrast, Case Study Organisation C was actually exploiting cultural differences in its association with Japanese contractors.

 

So they [the Japanese] are quite interesting but they have a very different understanding and I think that now they are beginning to learn that there are too many of 'us' – there's Europe, America – and we will never adjust to them and, particularly now that they've taken a fall financially, they're no longer going to be the massive power house that they have been so they now realise that they must try to understand a little more about the way we work, particularly when they're working overseas (it doesn't matter in Japan). So, where there are opportunities for English consultants is we tell them how we work and they'll meet ‘fire with fire’. But I still don't understand them fully - they still do things which surprise me after working with them for five years.

 

 

Discussion and conclusions

The general goal of the marketing strategy employed by the majority of the case study companies seemed to be to minimise the company’s exposure to cultural diversity and, by extension, the risks entailed in that exposure.  The only area of cultural difference for which specific policies had been developed were those designed to deal with ethical differences as a result of differing business practices.  However, for the contractors in the study in particular, marketing policies designed to deal with ethical differences appeared to fail to reflect the reality of the expatriate experience and, consequently, were likely to be seen as dogmatic and impractical.

 

British construction enterprises (and particularly contractors) reported finding it increasingly difficult to compete overseas.  If they are to maintain a significant presence in the international arena, they can no longer rely on reputation and historical connections.  They need to be able to add value to their service, primarily through the transfer of the knowledge that provides their competitive advantage.  However, transfer of knowledge across cultures is difficult and it is only through carefully managing the differences that transfer of knowledge (and, hence, competitive advantage) can be effective.  This management of the differences in culture becomes apparent in the implementation of policies designed for that express purpose.  From a marketing perspective, this would have to be both in terms of the strategic approach to market identification and in terms of the development and building of staff skills and abilities in the context of an appreciation of cultural diversity. 

 

The problem that the majority of the companies in the study had was their inability, or unwillingness to make any serious efforts to accommodate cultural differences in the delivery of their services across the world.  However, one reason for this is because doing so is not easy.  It requires effort to reflect upon, consider and understand the gaining of competitive advantage through the application of knowledge.  It is even more difficult to then find ways of gaining additional advantage by incorporating the cultural dimension within the application of that knowledge – in other words, being synergistic.

 

Case study organisation E was identified as an exemplar in this respect.  The directors were able to incorporate the cultural dimension at the national level within its services by focusing on the cultural dimension at the corporate level.  In the first instance, they took the time and effort to reflect upon their own corporate ideals and conception of professionalism.  With this knowledge, they were able to form relationships with overseas organisations that, while having people of a different national culture, subscribed to the same corporate ideals as they.  This was a long and difficult process but, by ensuring a match in values at the corporate level, they were able to develop the trust necessary to allow the overseas subsidiaries to implement policy and deliver service free from central control.  This meant that, while delivery of service remained relatively constant throughout the organisation, the delivery and was interpreted and implemented in a way that was appropriate and relevant to the local, cultural context.  Case study E’s success lay in their clients believing that policy and service delivery would remain of the same quality and standard throughout the company.  To ensure this, regular collective meetings of senior management from all the offices throughout Europe, were held to form a consensus on what the company was seeking to achieve and what direction it would take in the future.  These meetings not only confirmed current and future strategy but also reinforced the corporate values on which the organisation was founded.  The key point to note in this story is that the approach taken by the company was in no way easy or simple to adopt.  However, past and continuing effort has been rewarded with commissions and other business.

 

One issue that was evidently important, as it ran through many of the interviews was that of ethical differences.  This paper has not sought to address the debate over the most appropriate marketing response to ethical differences.  What was clear was that most corporate ‘official’ policy was not to entertain in any way the issues of corruption, bribery and so forth, in any way whatsoever.  What was also clear was that that this was not always appropriate in practice.  This was because ethical differences do not just manifest themselves as big cases of corruption and bribery, but can pervade societies and be seen, at the societal level, as being perfectly acceptable whereas major corruption is not acceptable.  Thus, what Western eyes might see as nepotism would be seen in other societies as familial duty rooted in strong cultural, collectivist values.  Equally, the giving and receiving of gifts, which might be seen in Britain as bribery, might be seen in other cultures within a wider context of trust and transaction which is entirely appropriate.  While the paper did not seek to resolve the question of how construction enterprises might account for ethical differences at this level it did identify a mismatch between an almost dogmatic attachment to ‘ethical values’ on the part of organisations, creating difficulties for the managers responsible for marketing their companies in certain locations.  A more appropriate stance is required, that avoids condemnation in the company’s home country while ensuring that the company’s expatriate or foreign managers are not placed in the ambiguous situation of ensuring the company’s interests while supporting their ethical policy.  What such a stance might entail is a question to be resolved elsewhere.

 

Another aspect that has emerged as a key feature of companies working internationally is the link between corporate (or organisational) culture and national culture.  It was found that to successfully incorporate national cultural differences within corporate competitive advantage first requires a culture within the corporation that is predisposed to viewing cultural differences as a source of potential advantage rather than only as a source of problems.  Ironically, it seems that only through synchronisation of culture at the organisational level are companies able to transcend national cultural differences and, in so doing take control of the cultural dimension in their international marketing strategies.

 

 

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