Vive la Différence: How Embracing Cultural Awareness Empowers Global Virtual Teams

A few years ago I worked for a company with a manufacturing base in the north of Italy. Journeys from the UK to the Italian factory were highly prized, not least because we landed in Venice and then enjoyed a leisurely and breathtaking drive to the site deep in the Dolomite mountains. As a hub of industrial production, it was certainly a picturesque spot for a manufacturing base, and a total contrast to the usual drab home for a factory. Inside it was also pristine and impressive and a fine example of manufacturing excellence to match the grandeur of its mountain setting.

The added appeal of an Italian sojourn was that our factory was also based in the town of Bassano del Grappa, famous for the fragrant grape brandy, grappa, that is part of its name. Local legend has it that a Roman soldier first distilled grappa in the town using equipment stolen from Egypt. Needless to say, it was not just the scenery, and the journey that made these Italian visits so memorable, it was also the opportunity for two hour lunches washed down with generous tots of grappa. The sumptuous repast and the alcoholic accompaniment often ensured we were good for very little in the afternoon.

Teaching my students this week as part of my EM-0254 Leadership in the Age of Technology course, I was reminded of those trips to Italy as we discussed cultural awareness in the context of global virtual teams. One of my students talked of the challenges from working with an overseas team whose R&D facility was based in Europe and effectively shut down during the month of August. And I was also reminded of the popular social media meme on the difference between a European and an American out-of-office message:

The meme is amusing, not just because of its wry observation on the topic of cultural difference, but also the rather trenchant commentary upon America's overworking culture (a topic for another day). But it also makes an important point about how the pandemic and the rise of remote working across borders has brought into focus the need for cultural awareness as an important leadership skill, and the embrace of cultural difference to strengthen the creative and productive potential of global virtual teams.

Back in the 80s, Theodore Levitt foretold of a world that would become more homogenous in its markets, products, and work practices, driving us "toward a converging commonality", as he put it. As such he painted a bleak picture of standardization and uniformity that many critics saw as an unappealing image of globalization. And while his perspective became somewhat of a caricature, if anything the pandemic has highlighted the strength from embracing diversity, and not standardization. Applying this to global virtual teams, too often the research and anecdotal evidence dwells upon the negative effects of cultural difference within teams, but more recent studies have suggested that cultural diversity within global teams actually increases creativity and satisfaction.

Stahl and Tung (2015), have analyzed the recent literature on cross-cultural communication and collaboration, and from reviewing 1,100 studies from 24 years in a single publication, they noted that 95% of that research dwelt upon the negative impact of differences across teams. In a meta analysis by Stahl, Maznevski,?et al. (2009), however, the studies showed that cultural diversity can be both an asset and a liability, but that such teams can be more creative and reach better decisions. Taras, Baack, et al. (2021) , have argued that global virtual teams excel when they effectively manage two important facets of diversity: personal and contextual.

Personal diversity relates to observable characteristics, such as age, gender, values, and language skills. Contextual diversity, on the other hand, focuses upon the contextual differences derived from the environment in which the individual team members live. Examples could be the impact of differing economic systems, or even the prevailing political system or institutions, such as that observed between the USA and China. Taras, Baack, et al. (2021), have also observed that global virtual teams with high levels of personal diversity can sometimes negatively impact the team environment. Different working languages, for example, can lead to tension and misunderstanding, though not always. But it is in the area of contextual diversity that real gains can be observed, where a wider range of contexts provide a deeper well of knowledge and experience from which to draw.

While leaders should be aware of the challenges that personal diversity can sometimes create, effective training and developing greater cross-cultural awareness can mitigate those effects away, and it is money and time well spent. Contextual diversity, on the other hand, can bring multiple benefits in terms of creativity and innovation, and team members who span the bridge between different cultures should be highly prized and can be particularly valuable in facilitating the free exchange of new ideas and knowledge. Recruitment should purposely concentrate upon bringing in team members who will add to the diversity of the team.

Teams that effectively balance the challenges of personal and contextual diversity and embrace a willingness to foster cultural awareness are strengthened as a result. Over my career I have personally worked with American, European, Chinese, Taiwanese, and many more nationalities, and I firmly believe that my experience and the output of the team was enhanced by that diversity, both personal and contextual. So whether it is in personal or contextual diversity, for the sake of empowering the performance of a global virtual team, when it comes to embracing cultural awareness I am proud to say "Vive la Différence"!

Will Trevor is Director, Programs and Operations at the Tufts Gordon Institute .

Disclaimer

Opinions expressed are solely my own and do not?represent the views or opinions of my employer.

References:

Levitt. “The Globalization of Markets.” Harvard Business Review., vol. 61, no. 3, Graduate School of Business Administration, Harvard University, 1983.

Stahl, G., Maznevski, M., Voigt, A.?et al.?Unraveling the effects of cultural diversity in teams: A meta-analysis of research on multicultural work groups.?J Int Bus Stud?41,?690–709 (2010). https://doi.org/10.1057/jibs.2009.85

Stahl, G., Tung, R. Towards a more balanced treatment of culture in international business studies: The need for positive cross-cultural scholarship.?J Int Bus Stud?46,?391–414 (2015). https://doi.org/10.1057/jibs.2014.68