Cultural awareness leads to successful business ventures with other cultures. In the United States, change and all things new are a driving force. Koreans are conservative, influenced by Confucian ethics of respect. In Saudi Arabia, the tenets of Islam dictate the way business is done. Today I’ll compare business structures in these countries.
It’s no surprise that business structures in the U.S. vary greatly. There are some commonalities though. For example, all large companies are considered entities in themselves; they are separate and independent from employees. Usually there is a CEO and some senior management at the top of the structure. The CEO has a lot of influence and is held accountable for the success or failure of the company.
Business structure in South Korea typically revolves around a founding family. Unlike the Board of Directors in an American company, this family has a lot of influence on the day to day running of the company. Decisions come from the top and are delegated downward. Confucian tenets emphasize age and seniority which means that younger colleagues rarely voice their opinions.
Saudi Arabian business structures also begin with family but almost all employees come from extended family. Nepotism is rare in America but in Saudi Arabia it’s the way of life. As in Korean business, power is limited to older family members. Promotion is based on family connections and demonstration of loyalty. It is unwise to discount a seemingly minor employee because that person may have a close relationship with someone in power.
Having cultural awareness provides insight into these business structures, making it less confusing to do business with them.
Jinsoo Terry
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