After conducting the necessary due diligence, to support your choice of business partner, it is recommended that you conduct an cross-cultural due diligence.
A famous Asian proverb states “One only does business with friends”.
Through a through cross-cultural due diligence one can confirm if my partner is my “friend”.
Research suggests that intercultural dissonance is one of the major causes of why international mergers and acquisitions fail. Regardless of the objective of the venture, companies should be aware of the cross-cultural risks and opportunities. They go hand-in-hand with the integration of two or more parties and it is imperative to prepare the workforce to cope with these challenges.
Besides financial, legal and commercial due-diligence, a comparison of cultural differences can help to save the venture on a long run.
No matter in which situation the “man” finds himself, he will show characteristics that can be traced back to his roots.
Understanding the general cultural dimensions of a country, can avoid communication misunderstanding. Be it in negotiations, contract agreements or running an entity.