Critically analyse the role of culture in internationalisation process of hospitality firms.

To analyse the role of culture in international hospitality, it is important to understand the concept of culture. Culture is derived from a Latin word colere which means to cultivate and foster. Culture is a set of beliefs that are developed from childhood and continue to instill throughout our lives. Some values change over time, some remain fixed. Culture dictates our way of decision-making, perception and communication in the form of processing and interpreting (Altinay 2007). Although there is no standard definition for Internationalisation, it may be coined as the process where in organisations expand beyond their national borders into international markets (Groschl 2011). As cited by (Whitla, Walters & Davies 2007), the expansion strategy of hotel chains in international markets is based on Market drivers. Guests expect a standardised level of service from chain with a bit of local adaptation depending on the region. Good deal of guests prefers to book the hotels centrally. Corporate firms also prefer to deal with chains that have a global presence. Furthermore, the experience a guest has in one hotel will affect the inclination to stay with the same hotel chain in another destination. If the competitor has a hotel in a strategic location, the hotel chain may lose out on its market share if they do not have a hotel in that location. These are some major factors that impact the decisions of a hotel firm to go global. The various cultural differences that can be witnessed are in the form of decision making process, communication styles, approach towards completing tasks, secrecy, and approach towards knowing. These differences as highlighted by Clarke (2007), need not be amongst different cultures, but may very well be within the same culture. As the companies go global it becomes challenging to manage a diverse workforce and the business cultures of the national markets that they operate in. If the organisational culture is not inclusive and fails to adapt to the local culture it may result in tension among the organisations members, thus affecting the overall performance. To run a successful team it is important to create trust among members. Building trust in a multicultural environment is a complex process. It would require a leader to be aware of the cultural differences as trust would be interpreted in its own way in each culture (Altinay 2007). Culture will also influence the buying behavior of guests. To sell service which in itself is intangible, it is of high importance to know the cultural background of the market and device marketing strategies accordingly.

The perception of time is different for each culture. While in some cultures it is considered pardonable to arrive late for a meeting, it might not be the same in a more industrialised culture like for e.g. Germany. Culture also plays a crucial role in human resource management. For an organisation to choose a right candidate it would benefit to know a bit about their cultural backgrounds to make a sound choice. Cross cultural training helps the employees to be prepared to work overseas. Although this training is on a superficial level it avoids the surprise element they might face after moving to the new place. Language is another factor that is considered a differential between various cultures. While directness may be accepted in one culture, it might be considered as offensive in the other. Also the degree of politeness followed in a culture needs to be understood to carry out meetings effectively and without being disrespectful. An insight into other cultures encourages respecting differences and working in harmony. National Culture(s) National culture has a direct impact on the leader and subordinate relationship in an organisation. Individuals coming from the same national cultures will have a similar set of ideas, beliefs and attributes which are essential in a workplace. The perception of work environment and other components is influenced by the ethnic culture of the employee (Hofstede 1991). However, as per a survey conducted by Testa (2007), the subordinates did not perceive a leadership style of their manager based on the nationality. But they agreed that social exchange would be affected by the cultural similarities between two. To manage a culturally diverse team it would benefit the leader to know the cultural differences among the various nationalities. Hofstedes cross-culture studies explain the four major cultural dimensions and their impact on work performance and outcome. These would apply for national as well as organizational cultures, namely: Power distance: This dimension looked at the issue of inequality of power. It was witnessed that power distance was larger in steep organisational hierarchies and the employee contribution in decision making was less. Uncertainty avoidance: It is reflected in countries where high priority is given to procedures, rituals and society in general. Individualism vs collectivism: People in individualistic countries are expected to look after their own interests and well being. Collectivism was found to be dominating in developing countries and also countries where social ties were considered above individual gain.

 Masculinity vs femininity: Masculinity was attributed to achievements and rewards and femininity towards values of caring, well being and relationships. Organisational Cultures As cited by Dawson (2011), organisational culture is impacted by the environment in which it operates. The organisations culture is witnessed through tangible and intangible factors. As the organisation expands its boundaries the culture may change to adapt itself to different surroundings. It is also linked to the HR practices followed by the organisation. This involves hiring right people who have the spirit of hospitality and share similar values with the organisation. The right selection process will result in hiring perfect candidate, which will in turn lead to exceptional customer service. The increase in organisational commitment will also positively affect the customer satisfactions and loyalty. The culture can be differentiated between two companies in the way they operate, the dress code they follow, the formal and informal ways of socialising and the norms that are generated. Tourist culture is another form of culture that is emerging. As the disposable household income rises, guests travel more and hence, are more aware of what to expect in terms of service quality. If a tourist spot for instance is frequented by Chinese guests it would not benefit the hotel to open an Italian restaurant. Thus, it would require proper research on the tourist culture to identify the target segment to achieve high revenue. It may very rightly be said that culture is a dynamic part of life that shapes our perceptions, judgments and views towards ourselves and others. Understanding culture helps us orient to react to situations in a balanced approach to avoid conflict. The various forms of culture overlap each other as shown in Figure 1. If you are equipped with information regarding diversity of cultures it will be a long term benefit to manage a cross cultural team.

Figure 1: Cultural interaction in international hospitality (Altinay 2007)