Impact of Cultural Differences: High and Low Context Cultures in International Business

Abstract

This study explores how cultural differences, particularly high-context and low-context communication styles, impact international business. High-context cultures, like Japan and Thailand, rely on indirect communication and non-verbal cues, while low-context cultures, such as the US and Germany, prioritize directness and clarity. These differences affect leadership, teamwork, and workplace dynamics, often leading to misunderstandings. The study examines 1) how cultural variations influence business communication success or failure, and 2) how cultural awareness improves global collaboration. Interviews with eight professionals provided insights into workplace interactions. Findings show that high-context cultures emphasize group harmony, which may slow decision-making, while low-context cultures focus on transparency, sometimes seen as too direct. Factors like power distance, individualism vs. collectivism, and non-verbal communication also shape these dynamics. The study highlights the need for businesses to adopt cultural sensitivity training and flexible communication strategies to reduce misunderstandings and improve collaboration. Companies investing in cross-cultural education and inclusive leadership can enhance teamwork and business success in a globalized world.