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National Culture's Impact on Intercultural Competence: Romania and Moldova Compared, Summaries of Business Accounting

Vrije Universiteit BrusselBusiness Accounting

A research article published in the Cross-Cultural Management Journal in 2019. The authors, Lilia Covas and Angela Pirlog, explore the relationship between national culture and intercultural competence development for future managers in Romania and the Republic of Moldova. They use the Trompenaars and Hampden-Turner model to analyze the cultural dimensions of business students from both countries and highlight important particularities that should be considered when developing intercultural competence. The article also discusses the importance of intercultural competence in modern business and provides recommendations for managers based on the cultural specificity of each country.

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Cross-Cultural Management Journal
Volume XXI, Issue 2 / 2019
111
Lilia COVAS,
Angela PIRLOG
ASEM
THE IMPORTANCE OF NATIONAL
CULTURE DIMENSIONS ON
INTERCULTURAL COMPETENCE
DEVELOPMENT OF FUTURE
MANAGERS
Original
Research
Keywords
Intercultural competence;
Cultural dimension;
Trompenaars and Hampden-Turner model
JEL Classification
M14, Z13
Abstract
The process of training intercultural competences of future managers is closely associated to the national
culture of the country they come from. This is why studying cultural dimensions is very important in this
context. Possible intercultural differences can be ameliorated through the getting of intercultural
competences, and the intercultural formation considers the cultural positioning of the countries, according
to different models. Main methodological approach of this paper represents the comparative research. Part
of the information in the article includes the works of foreign and local researchers in the field of
managerial theory and practice and scientific studies carried out in the Republic of Moldova and
Romania. We used as the basis of our study the model of national culture differences of Fons
Trompenaars and Charles Hampden-Turner. In the article the authors analyzed the cultural dimensions
of the business students from Romania and the Republic of Moldova. The results of the study allow
highlighting certain important particularities, which must be taken into account when developing
intercultural competence of future managers. This is explained by the fact that the culture and the way
they see the world will dictate their attitudes and behaviors in their personal and professional lives. How
they perceive different cultures and how they react to them should make them think about problems and
then find the best solutions for maintaining intercultural consensus.
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Volume XXI, Issue 2 / 2019

Lilia COVAS,

Angela PIRLOG

ASEM

THE IMPORTANCE OF NATIONAL

CULTURE DIMENSIONS ON

INTERCULTURAL COMPETENCE

DEVELOPMENT OF FUTURE

MANAGERS

Original

Research

Keywords

Intercultural competence;

Cultural dimension;

Trompenaars and Hampden-Turner model

JEL Classification

M14, Z

Abstract

The process of training intercultural competences of future managers is closely associated to the national

culture of the country they come from. This is why studying cultural dimensions is very important in this

context. Possible intercultural differences can be ameliorated through the getting of intercultural

competences, and the intercultural formation considers the cultural positioning of the countries, according

to different models. Main methodological approach of this paper represents the comparative research. Part

of the information in the article includes the works of foreign and local researchers in the field of

managerial theory and practice and scientific studies carried out in the Republic of Moldova and

Romania. We used as the basis of our study the model of national culture differences of Fons

Trompenaars and Charles Hampden-Turner. In the article the authors analyzed the cultural dimensions

of the business students from Romania and the Republic of Moldova. The results of the study allow

highlighting certain important particularities, which must be taken into account when developing

intercultural competence of future managers. This is explained by the fact that the culture and the way

they see the world will dictate their attitudes and behaviors in their personal and professional lives. How

they perceive different cultures and how they react to them should make them think about problems and

then find the best solutions for maintaining intercultural consensus.

Volume XXI, Issue 2 / 2019 INTRODUCTION The need to increase the collaboration of Romanian business structures and those from the Republic of Moldova requires the development of effective management systems of production and commercial processes, modern methods and technologies for making managerial decisions. The new reality has raised the issue of intercultural education and competences. As a result, the problem of the profile of the future manager from Romania and Republic of Moldova is transformed into the issue of an intercultural comparative analysis. The main purpose of the paper is to make a comparative analysis of the variation of cultural dimensions in Romania and the Republic of Moldova according to the model of Fons Trompenaars and Charles Hampden-Turner (Trompenaars, Hampden-Turner, 1997). The research questions are: 1. Are the variables of cultural dimensions different in these countries?

  1. Is the intercultural competence necessary for future managers from Romania and the Republic of Moldova in their bilateral business relations? In order to provide an answer to these questions, we used a set of tests containing 7 dilemmas with 4 variants of answer. It has been applied to 150 of Academy of Economic Studies of Moldova in Chisinau (Pîrlog, 2017). We have compared the received results to the survey, conducted at the Academy of Economic Studies of Bucharest, Romania and was applied to 191 students (Bălan, Vreja, 2013). In this way, we tried to find out which are the value orientation of young people at the initial stage of education in business. The results demonstrate their attitudes, those derived directly from the fundamental cultural attitudes of people in Romania and the Republic of Moldova. The carried out research aims, on the one hand, to make an intercultural diagnosis of societies in Romania and the Republic of Moldova, on the other hand, to offer managers a support point through the recommendations according to the cultural specificity, for the exploitation its intelligence and obtaining positive effects in the management of organizations. A differentiated approach, based on valuing cultural differences, can lead to positive situations due to the fact that the manager has a complex of competences that he can use according to the work situations. NEW REALITY FOR ROMANIA AND THE REPUBLIC OF MOLDOVA There are many ways to examine cultural differences and their impact on international management. Culture can affect managerial attitudes, business ideology and even government relations. Moreover, culture primarily influences human thinking and behavior. A good example is the case of West Germany and East Germany. As it is known, at the end of World War II Germany was divided into two parts and separated by what was called the Iron Curtain. West Germany remained under the influence of the West, East Germany under the influence of the Soviet Union. Although they still spoke the same language and had the same religion, when the Berlin wall was demolished, the German people discovered that the two German cultures, Eastern and Western, are very different. A similar example is the case of Romania and the Republic of Moldova. Intercultural relations between these countries were troubled by the time gap in the soviet period that built stereotypes toward cultural legacy and national traditions. After 1989, after the collapse of the Soviet regime the possibilities and geographic space of mobility of citizens from Romania and the Republic of Moldova have increased. The enterprises in Romania and Republic of Moldova during recent period of time have passed through positive and negative moments. The economy in transition in both countries was characterized by the decrease in efficiency (Goncharuk, 2 014), but the transition environment offered challenges for the start-ups: advantages and business opportunities for some of them, risks and threats for others (Chașovschi, Bordeianu, Clipa, 2014). According to the generally positive trends, the potential of economic relations between these two countries is not fully explored. Until the current moment there are still felt differences between positive practices and relevant experience of the Romania, member country of the European Union, and Republic of Moldova. Romania remains a country with a strategic importance for the Republic of Moldova, not only economically but also historically, culturally, geographically. In terms of investments in social capital in the Republic of Moldova, Romania is takes already the first place and in terms of volume of investments it is on the second place. Currently, there are over 1650 companies with Romanian capital in the Republic of Moldova while in Romania there are almost 5000 companies with capital from the Republic of Moldova (Nuțiu, 2019). Some studies highlight similar problems in the management of companies in the Republic of Moldova, as well as in the economic entities from Romania. Prevailing categories are of aggressive/defensive styles and passive/defensive styles, which compared to those constructive, have a negative influence over the organizational performance. Emphasis is placed more on the control of employees within the organization

Volume XXI, Issue 2 / 2019 the difference between the cultures in which it is considered that the ideas and techniques can be applied in any conditions without modification and those in which it is considered that the circumstances dictate the way in which ideas and techniques must be applied. The results for each dimension are the following (Figure 1):

  1. is a full universalist answer;
  2. is a full particularist answer;
  3. is a particularist answer doubled by an universal orientation;
  4. is a universalist answer but recognizing the importance of particular relationships. The conclusions that must be derived from these data are that young people from Romania tested proved to be rather universalist but also with particularistic tendencies while Moldovan students have shown more particularism with universalist direction. Communitarianism versus individualism is the dimension about the group versus the individual relationship. In individualist cultures people consider themselves independent persons, while in the collectivist people are defined as members of a group. The answers denote the following (Figure 2):
  5. is a radical individualist answer;
  6. affirms competitive individualism, but reconciles it with communitarian cooperation;
  7. asserts the preeminence of the group, but also allows the existence of competing individuals;
  8. is a radical communitarian answer. Specific competitive individualism with collective cooperation is specific in the both societies, as well as the group importance allowing the existence of competitive individuals. Neutral versus Emotional shows the range of feelings expressed. A neutral culture is the one where people hide their feelings, while an affective culture is characterized by the fact that emotions are natural and open. The results for each dimension are the following (Figure 3):
  9. is a radical option for neutral orientation;
  10. starts from the neutral point of view, but acknowledges the importance of emotions for a good future relationship;
  11. represents an affective orientation, aimed at bringing under control of future affective interactions;
  12. is a radical option for the affective orientation. The individuals in Moldavian and Romanian societies have a neutral orientation with taking into consideration the personal relations importance for growing. Diffuse versus Specific indicates the range of involvement. Specific relationship is seen as one very impersonal based only on contracts and agreements. Diffuse refers to relationships on a human level. The diffuse culture prefers a more human relationship and values this over impersonal, logical relationships often seen in specific cultures. The answers denote the following (Figure 4):
    1. is an option for diffuse orientation;
    2. is a compromise between the two, based on a diffuse point of departure;
    3. is a compromise between the two, based on a specific point of departure;
    4. is an option for specific orientation.Analyzing specific versus diffuse dimension we can see a compromise of both with the diffuse starting point. Achievement versus Ascription dimension demonstrates how status is attributed. In cultures with the achievement dimension the status is gained, individuals are treated equally, so that they can be evaluated according to their merit. The cultures in which the superior levels have full decision-making authority and establish the social- professional status of individuals according to criteria like age, political affiliation, membership to a clan, etc. In this dimensions the answers denote the following (Figure 5):
    5. is a radical option for ascribed status;
    6. represents the belief that socially ascribed status will lead to achievement and success;
    7. represents the belief that achieved status will lead to social ascription;
    8. is a radical option for achieved status. In Moldova people are convinced that the ascribed status helps them in their personal and professional life, in Romania the ascribed option is in balance with achieved one. Sequential versus Synchronous time dimension describes how the time is managed. This dimension focuses on time and how a culture relates to it. People in sequential cultures try to do a single task in a given period; they are punctual and strictly follow work plans. In synchronous cultures people tend to do more things in a given period of time, the dates of meetings may be changed at the last minute and plans are generally subordinate to interpersonal relationship. In this dimensions the answers denote the following (Figure 6):
    9. is a radical option for sequential orientation;
    10. represents an option for sequential orientation, but connects it to synchronic managed processes;
    11. represents an option for synchronous orientation, but connects it to high-speed sequential managed processes;
    12. is a radical option for synchronous orientation.

Volume XXI, Issue 2 / 2019 Republic of Moldova is a synchronous-tim e country. People can have several activities in the same time while in Romania the society is more sequential, they are more are punctual and try to do a single task in a given period. Inner direction versus Outer direction shows how people relate to nature). In external-oriented cultures individuals consider that they control the environment, while internal-oriented cultures individuals believe the environment is the dominant factor. In this dimensions the answers denote the following (Figure 7):

  1. is a radical option for an outer-directed strategy/orientation;
  2. represents an option for outer-directed orientation, but connects it to inner-directed strategy
  3. is a radical option for an internal-directed strategy/orientation;
  4. represents an option for internal-directed orientation, but connects it to an outer-directed strategy. More internal direction than that external represent the situation for the individuals in Moldova , external direction with elements of internal is more representative for the students from Romania. CONCLUSIONS After having analyzed the cultural dimensions (based on the Fons Trompenaars and Charles Hampden-Turner’ model of national culture differences) of the business students from Romania and the Republic of Moldova we have reached to the conclusion that some dimensions have almost the same scores: Neutral versus Emotional, Diffuse versus Specific, some of them are slightly different: Universalism versus particularism, Achievement versus Ascription Communitarianism versus Individualism, but in the Inner direction versus Outer direction and attitude Sequential versus Synchronous time have big difference in scores. These qualities are reflected in external outcomes which refer to the observable behavior and communication styles of the individuals. They are the visible evidence that the individuals are, or are learning to be, interculturally competent. From the listed above cultural identity characteristics and its connection to intercultural competence in business, educational institutions especially universities in economics, teaching/learning approaches, teaching content, will determine the future impact on students’ intercultural behavior. Knowledge, skills and attitudes that are component parts of intercultural competence lead to internal outcomes which refer to an individual who learns to be flexible, adaptable, empathetic and adopts an ethno-relative perspective in business. Programs should be sequenced so that culture-general information precedes culture-specific information. The intercultural mindset needs to be established before the skillset can be acquired as we have done at this stage of our research. All programs need to take into account the development stage of prospective participants. Most importantly, the development of intercultural competence must be seen as complex activity that demands significant time and resources. Techniques and methods can be learned to convert these differences into synergies which will create new opportunities. The model and methods could be developed and they will need to be implemented by professionals with the appropriate expertise. Recognizing intercultural competence as a differentiating factor for success in business will lead to organization of various initiatives, trainings and workshops within economic education centers. Knowing the cultural differences in our countries will allow us to develop intercultural skills of business students that will lead to a better comprehension of representatives of other culture and to implementation of specific managerial methods in business relations with representatives of these countries and also in management of joint Romanian-Moldavian ventures. REFERENCES [1] Balan S, Vreja L. ( 2013 ). The Trompenaars’ seven-dimension cultural model and cultural orientation of Romanian students in Management, In proceedings of the 7th International Management Conference "New Management for the New Economy", November 7th-8th, Buchares, Romania. [2] Bennett J. M. (2008). Transformative training: Designing programs for culture learning. In M. A. Moodian (Ed.), Contemporary leadership and intercultural competence: Understanding and utilizing cultural diversity to build successful organizations Thousand Oaks, CA: Sage. (pp. 95 – 110). [ 3 ] Covaș L., Pîrlog A. ( 2017 ). The Dimensions of Corporate and National Culture: the Cross- national Analysis, In: Economica, No.3 (101), pp. 17- 27. [4] Chașovschi C., Bordeianu O., Clipa D. (2014). Entrepreneurial Culture in Transition Economies. The case of Romania and Republic of Moldova. In: Procedia Economics and Finance, Vol. 15 , pp. 1507- 1514.

Volume XXI, Issue 2 / 2019 List of figures Figure No. 1 Universalism versus particularism dimension Figure No. 2 Communitarianism versus individualism Figure No. 3 Neutral versus Emotional

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Volume XXI, Issue 2 / 2019 Figure No. 4 Diffuse versus Specific Figure No. 5 Achievement versus Ascription Figure No. 6 Sequential versus Synchronous time

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