Cross-cultural Relationships between

Expatriate Managers and Croatian

Counterparts in a Croatian Working

Environment

Masters Dissertation

Keith Probert

Supervisor: Graham Hollinshead

Sumbission Date: August 2005

University of the West of England, Bristol

Dissertation submitted in partial fulfilment of the requirements for the

Full-Time MBA

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CONFIDENTIALITY STATEMENT

The dissertation may be made freely available for inspection for academic purposes.

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ABSTRACT

This dissertation investigates the cross-cultural relationships between expatriate and

Croatian managers in a Croatian working environment. Semi-structured interviews

were conducted in the Croatian capital Zagreb with expatriate and Croatian

managers. They represented various educational levels, and hierarchical positions

across a variety of sectors.

The managers were asked questions, which were indicative of cross-cultural

complexities and adjustment issues faced by both sets of managers. The collected

qualitative data was first categorised, so as to ease the analysis aiming to gain more

insight into: Barriers to team working; Skill, knowledge and learning; and

Adjustment issues.

The data was analysed to determine if the adjustment process for expatriate and

Croatian managers working in a cross-cultural team follow the U-Curve or J-Curve

patterns of adjustment, and to ascertain whether both sets of managers experience the

four stages of honeymoon, culture shock, adjustment and mastery during their cross-

cultural relationship.

Conclusions made from the results of this study and the literature reviewed suggest

that communication, working practices and management skills were found to impact

the relationship between expatriate and Croatian managers when working in the

Croatian working environment. This study also highlighted that positions held by

expatriate managers were more senior. In contrast to this, all of the Croatian

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managers were younger and were found to be less experienced than their expatriate

counterparts.

This research project has also identified that Croatia has a more eastern than western

orientation, and that Croatians have a desire to embrace western values and are in the

process of adjusting to these. Croatian managers need to develop ‘softer’

management skills and a more proactive approach to business in general. The

expatriate managers need to immerse themselves deeper into the Croatian culture,

recognising and absorbing the local culture.

The findings of this research project demonstrate that managers with previous cross-

cultural experience had less adjustment issues, compared to the less experienced

managers. The managers with greater cross-cultural experience have a good

relationship with their managerial counterparts, their pattern of adjustment follows

the J-Curve pattern of adjustment. In contrast, the less experienced managers were

found to have a less satisfactory relationship with their counterparts and their pattern

of adjustment follows the U-Curve pattern of adjustment.

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GLOSSARY

CEE Central and Eastern Europe

CI Croatian Interpreter

ECG Eaton Consulting Group

EU European Union

FDI Foreign Direct Investment

GDP Gross Domestic Product

HDZ Hrvatska Demokratska Zajednica (Croatian Democratic Union)

HCN Host Country National

HRM Human Resource Management

IHRM International Human Resource Management

IT Information Technology

JCT J-Curve Theory

MNC Multi-National Corporation

MNE Multi-National Enterprises

RD Relative Deprivation

SME Small and Medium size Enterprises

UCT U-Curve Theory

UNCTAD United Nations Conference on Trade and Development

USSR United Soviet Socialist Republic

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TABLE OF CONTENTS

Confidentiality Statement ………………………………………………………i

Abstract ………………………………………………………………………ii

Glossary ………………………………………………………………………iv

Table of Contents ………………………………………………………………v

List of Tables and Figures ………………………………………………………vii

List of Appendices ……………………………………………………………...viii

1. INTRODUCTION ………………………………………………………..1

1.1 Background Information ………………………………………………..1

1.2 Aim and Objectives ………………………………………………………..6

1.3 Content Overview ………………………………………………………..7

2. LITERATURE REVIEW ………………………………………………..9

2.1 Investigation of cross-cultural complexities of expatriate and

Croatian managers working together within the same team ……………….10

2.1.1 Culture……………………………………………………………….10

2.1.2 Education and Language ……………………………………….16

2.1.3 Managerial Competence ……………………………………….19

2.2 Examination of adjustment issues facing both expatriate and

Croatian managers ……………………………………………………….25

2.2.1 Expatriation ……………………………………………………….25

2.2.2 Host Country Nationals ……………………………………….28

2.2.3 International Human Resource Management ……………………….30

2.2.4 Adjustment ……………………………………………………… 33

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2.3 Theoretical Framework – U-Curve Theory and J-Curve Theory ……….39

3. RESEARCH METHODOLOGY ……………………………………….44

3.1 Research Paradigm ……………………………………………………….44

3.2 Sample and Procedure……………………………………………………….48

3.3 Data Collection ……………………………………………………….52

3.4 Data Analysis ……………………………………………………………….57

3.5 Limitation of the Research Method applied ……………………………….57

4. DATA FINDINGS ……………………………………………………….62

4.1 Sample Classification ……………………………………………………….62

4.2 Presentation of interview findings ……………………………………….65

4.2.1 Cross-cultural complexities ……………………………………….66

4.2.2 Adjustment issues ……………………………………………….69

5. ANALYSIS AND DISCUSSION ……………………………………….73

5.1 Cross-cultural complexities ……………………………………………….73

5.2 Adjustment Issues ……………………………………………………….78

5.3 Recommendations ……………………………………………………….83

6. CONCLUSION ……………………………………………………………….87

References ……………………………………………………………………….93

Bibliography ……………………………………………………………………...109

Appendices ………………………………………………………………………...I

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LIST OF TABLES AND FIGURES

Table 2.1 Summary of Croatian versus Western cultural

values, using Hofstede’s four value dimensions ……………….13

Table 2.2 Translation of some key business words from English

into Croatian ……………………………………………………….17

Table 2.3 Best Practice Initiatives for global organisations ……………….26

Table 3.1 Key measures to overcome bias in qualitative interviews ……….47

Table 3.2 Semi-structured interview questions ……………………………….50

Table 4.1 Biodata of Expatriate interviewees ……………………………….62

Table 4.2 Biodata of Croatian interviewees ……………………………….62

Table 4.3 Summary of findings ……………………………………………….71

Figure 2.1 Influence of different identities on the effectiveness of an

international Manager ……………………………………………….24

Figure 2.2 Thematic model of core problems and core solutions in

cross-cultural management literature ……………………………….38

Figure 2.3 The U-Curve of Adjustment ……………………………………….41

Figure 2.4 The J-Curve of Change ……………………………………….42

Figure 3.1 Suitable foreign businesses in Croatia for Research purposes ……...53

Figure 3.2 Suitable Managers for Research Interviews ……………………….54

Figure 4.1 Gender of Expatriate managers interviewed ……………………….63

Figure 4.2 Gender of Croatian managers interviewed ……………………….63

Figure 4.3 Age of expatriate managers interviewed ……………………….64

Figure 4.4 Age of Croatian managers interviewed ……………………….64

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LIST OF APPENDICES

Appendix A Argyle’s Skills Model ………………………………………..I

Appendix B Competencies for managing internationally ……………….II

Appendix C Ashridge Management College Survey

Most valued characteristics of international management …III

Appendix D Specific problems and research approaches that must be

addressed when conducting qualitative research in

Eastern Europe ………………………………………IV

Appendix E Transcript of an interview held with a Croatian manager …..V

Appendix F Dissertation Proposal ………………………………………IX

1

1 INTRODUCTION

1.1 Background Information

Croatia is a new nation-state, a former republic of Yugoslavia, with 4.5 million

inhabitants. During 1991-92, when it fought for its independence against Serbia it is

estimated that around 30% of the fixed assets in Croatia were damaged or destroyed

(Radošević, 1994). The war did not end until 1995, when the Croatian army retook

western Slavonija and the central Croatian region of Krajina, which had been

occupied by the Serbian-dominated Yugoslavian army (Infoline, online).

Croatia’s transition was initially led by Franjo Tuđjman’s Croatian Democratic

Union (HDZ) party, after free elections in 1990. The Croatians had been alienated

by Tuđjman’s authoritarian rule, out of touch nationalism and disastrous handling of

the war-shattered economy. In 1999, new elections brought about a reformist centre-

left coalition government, led by Ivica Račan. The 2003 elections brought a right-

wing coalition, led by the HDZ party, to power. The new Prime Minister, Ivo

Sanader, claims that his party is now far less nationalist and far more moderate than

in its earlier incarnation under Tuđjman (Infoline, online).

Owing to the collapse of the Eastern markets and the break-up of the former

Yugoslav market, Croatian companies have found themselves facing radically

reduced demand. The value of the exports lost amounted to 50% of Gross Domestic

Product (GDP). Goods exported to ‘socialist markets’ could not be simply redirected

to the European Union (EU) market, the closest and the biggest market for Croatian

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companies. This mirrors the experiences of other East European economies,

particularly Hungary and the Czech and Slovak Republics.

Croatia, like all the other former socialist economies, has inherited an industrial

structure dominated by big companies and with a significant lack of small companies

(Radošević, 1994). These companies were inert, bureaucratic and overstaffed, and

their strategy and competitive profile were undefined. Croatia experienced large

growth in unemployment, which is currently running at 13.8%, as a result of lay-offs

and bankruptcies.

Since the collapse of Communism in the Central and Eastern European (CEE) states,

there was a significant growth of Foreign Direct Investment (FDI) in these

transitional economies with a tenfold increase in FDI between 1990 and 1995

(United Nations Conference on Trade and Development (UNCTAD), 1996). Much

of this increase reflected a significant eastward flow of western European business

activity (Scullion and Brewster, 2001).

Croatia is pursuing a programme of economic adjustment and reform, transforming

its economy into one based fully on market principles. The aims are to accelerate

economic growth, privatisation, public enterprise restructuring and the rehabilitation

of banks; comprehensive reconstruction of war-torn areas; fight unemployment while

maintaining low inflation and a stable exchange rate; and to continue to develop the

legal and institutional framework. Croatia is strengthening institutional relations

with the EU and free trade ties with countries in Central and Eastern Europe

(International Trade Centre, online).

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In 2003 Croatia formally submitted its application to join the EU. The application

was accepted and it is anticipated that Croatia will join in 2007. As a consequence,

in recent years Croatia has benefited from increased FDI. According to the

UNCTAD (UNCTAD, online) a substantial increase in FDI flows to Croatia took

place in the late 1990’s, rising by about 30% per year on average since 1997, they

reached US$ 1.5 billion. This makes Croatia the sixth largest FDI recipient in CEE.

Austria, Germany and the United States are Croatia’s main investment partners,

accounting for about two-thirds of FDI.

The advantages of Croatia’s geographic location, the abundant natural and human

resources and a business tradition of long standing, make Croatia the ideal business

partner for the future (Nekretnine, online). After the dissolution of the communist

system and the introduction of political pluralism, Croatia is presently designing a

legal system, which will help steer her towards a market economy.

Multi National Corporations (MNCs) are also responding to the faster changes within

the modern global environment, by updating their International Human Resource

Management (IHRM) policies and procedures at an ever-faster rate. The majority of

European firms rely heavily on expatriates to run and control overseas operations

(Scullion, 1994). There has been a growth in expatriation between developed

countries in Europe (Brewster and Scullion, 1997) and new expatriate managers will

be interacting with Host Country Nationals (HCNs) of Croatia. This provides a test

bed for ideas about cross-cultural relationships between expatriates and HCNs, many

of whom were employed, not by wholly owned subsidiaries of the parent companies,

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but by international joint ventures or some other form of international alliance (Child

and Czegledy, 1996).

Organisations investing in or responding to change within other countries normally

place their own personnel within these host countries. The personnel are invariably

middle managers with a lot of knowledge and experience of the organisation, which

has sent them. Some of these personnel, or expatriates, have worked in other

countries before these assignments. Others may find themselves on an assignment

for the first time. One thing, which they will have in common, is that they will have

to interact with local nationals within organisations of the host countries.

For businesses sending managers on these types of assignments, there is both, an

investment and a risk. To send an employee overseas involves cost in terms of

money and time. The majority of expatriates will have families with children; they

will expect to be compensated for this. They will also need time to move, find

accommodation, schooling and settle into their new environment.

Many international organisations increasingly treat the European market as a single

entity and seek to integrate production, marketing, and human resource strategies at

the European regional level. A good example of this is Ford Europe who move

expatriate managers freely around their European operations (Scullion and Brewster,

2001).

The author, a British National, has spent time living in Germany, the Netherlands

and the USA, so has experience being an expatriate. Five years were spent in

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Germany whilst serving in the armed forces. During this time, cross-cultural

experiences were made whilst mixing with the local population, experiencing their

differing values and traditions. In the Netherlands, he set up a pilot centre for an

international franchise organisation and then spent several years expanding the

franchise network throughout the Benelux countries. This involved employing and

working with local managers, becoming familiar with a diverse cultural environment

and its challenges. The secondment to the Netherlands was made easier because of

the previous time spent in Germany, having reflected upon national and cultural

differences and being aware of potential challenges which may present themselves.

Time was also spent working in the USA as a consultant for the same franchise

organisation.

Many leisure trips were made to Croatia over many years. The author is married to a

Croatian national, with the wedding taking place Croatia. Having lived and worked

in Germany, the Netherlands and the USA, coupled with the affiliation with the

Croatian culture, this has generated a large amount of interest in the area of cross-

cultural diversity at both, a personal and a professional level.

The purpose of this investigation is to understand the dynamics of foreign and local

manager relationships. Once identified, the findings will be used to identify areas for

potential roles of employment within Croatia, depending on relocation. Issues of

expatriate adjustment have also been studied in the different context of expatriation

in Europe. The opening of the CEE markets has greatly increased business

interaction between Eastern and Western Europe. However, research suggests that

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CEE markets, partly because of the unstable business environment, may have several

characteristics that prove difficult for western expatriates (Villinger, 1996).

1.2 Aim and Objectives

The aim of this study is to investigate cross-cultural relationships between expatriate

managers and Croatian managers in a Croatian working environment, and to gain an

insight into cultural differences.

The main objectives of this dissertation are:

1 To investigate cross-cultural complexities of expatriate and Croatian

managers working together within the same team.

2 To examine adjustment issues facing both expatriate and Croatian managers.

The subsidiary themes listed below will be used to explore cross-cultural theory as it

relates to these two objectives.

1 Culture

2 Education and Language

3 Expatriation

4 Host Country Nationals (HCNs)

5 Managerial Competence

6 International Human Resource Management (IHRM)

7 Adjustment

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Local and expatriate ways of communicating, work practices, skills and knowledge

will be examined. In addition the interaction between local and expatriate managers

in the working environment will be explored. Consideration will be given to how

effective communication between the managers is, and the approach of each manager

to their counterpart. Barriers affecting communication and learning may be exposed

in this study. Any emerging synergies will be highlighted.

From an organisational point of view, the research could provide a basis for the

smooth running of daily business, and may also provide an insight into the different

working practices, allowing companies to use the lessons learnt from this study and

to incorporate these lessons when addressing similar ventures in the future.

1.3 Content Overview

This dissertation is divided into the following chapters:

Chapter 2 reviews the available literature on factors affecting cross-cultural

relationships of expatriate and Croatian managers in a Croatian working

environment. It reviews the following areas: Culture, Education and Language,

Expatriation, HCNs, Managerial Competence, IHRM and Adjustment. It culminates

in the proposed framework, drawing on Black and Mendenhall’s (1991) U-Curve

Theory.

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Chapter 3 describes the research methodology, including sample and procedure,

preparation of the questionnaire used, and what particular methods and techniques

were employed to collect and analyse primary data. Limitations of the study that

might affect the generalisation of the results are also stated.

Chapter 4 presents the data findings and the results of the survey regarding the

research questions.

Chapter 5 analyses and discusses the research findings and provides a critical review

of the research and of the research questions and the validity of their design. In

addition, recommendations are made.

Chapter 6 summarises the main areas of the research, highlights any important areas

of the study for those involved in cross-cultural relationships, and reflects on the

research project as a whole.

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2 LITERATURE REVIEW

The literature review draws on theory from areas of cross-cultural complexity and

adjustment issues. The subject matter can be viewed and analysed from these two

aspects, all of which are contributing factors to the working relationships between

Expatriate and Croatian Managers.

Key themes within the investigation of cross-cultural complexities of expatriate and

Croatian managers within the same working team include: Culture, Education and

language, and Managerial competence. The major themes used for examining

adjustment issues facing both expatriate and Croatian managers include:

Expatriation, HCNs, IHRM, and Adjustment.

Cross-cultural complexities are relevant for both, expatriate and Croatian managers,

as that is the area, which needs to be understood by both parties, so that a working

relationship can be established in the first place. Through the understanding and

acceptance of cultural differences, the cross-cultural working relationship between

expatriate and Croatian managers can flourish and harvest the best of both worlds,

which in turn may result in the successful integration of both managers, contributing

to the success of the organisation as a whole. During the process of gaining

understanding and accepting each other’s differences, an adjustment process for the

Croatian, as well as the expatriate manager, will take place. The success of the

adjustment process will reflect the success of the expatriate assignment and the

Croatian managers’ willingness to adapt and share knowledge, even though this may

be different to the way things have been done in the past.

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Black and Mendenhall’s (1991) U-Curve Theory and Armstrong’s (2003) J-Curve of

Change will be utilised when analysing the research findings to determine their

relevance, and which model may be the most applicable in relation to adjustment

issues faced by both, expatriate and Croatian managers.

2.1 Investigation of Cross-cultural complexities of expatriate and Croatian

managers working together within the same team

2.1.1 Culture

National culture provides the most common explanation for nation-level differences

in individual work behaviours, attitudes, and values (Bond and Smith, 1996).

According to Schooler (1996), culture represents the historically determined set of

implicit and explicit abstract notions and beliefs shared by a group of individuals

who have undergone a common historical experience.

History is particularly important when trying to understand how and for what reason

cultural beliefs and values have evolved. Not one single country will have the

history as another, setting it apart and forming individual traits of the population. In

addition, governments have the power to influence the direction of culture within

national boundaries. Socialist governments often intervene to regulate and organize

production and, through re-distribution of wealth, to build security nets for societal

members, satisfying human goals rather than profit motives (Tsoukas, 1994).

Because re-distributive benefits such as health care, welfare programs, and housing

are applied equally, there is less need for people to be attached to work to survive

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(Walder, 1992). In contrast, the capitalist system is a more ‘self-serving’ economic

system where everyone looks out for his/her own interests’ (Ralston et al., 1997, p.

180). Here the market place provides the necessary differential rewards to stimulate

individual efforts.

Huang and Harris (1973) state that cultural values, norms, beliefs and assumptions

are reinforced symbolically and passed through socialization and training from

generation to generation. Hofstede (1984) writes, that this passing down results in

‘collective programming of the mind which distinguishes the member of one human

group from another’. This is re-enforced by the observations of Schneider and

Barsoux (1997) for the city of New York, with its multitude of ethnic

neighbourhoods. Rather than a cultural melt-down, there are distinct cultural

fragments, with differences clearly defined.

According to Clark (2003), new researchers inspired to do cross-cultural research

must go beyond Hofstede’s framework to adequately represent the dynamic and

complex effect of culture on psychological processes and behaviour. Although

Hofstede’s framework for understanding national differences has been one of the

most influential and widely used frameworks in cross-cultural marketing studies, in

the past ten years or so it has also become one of the most widely criticised.

Detractors contend that his dichotomised way of representing cultural differences

leads to unjustifiable generalisations and ignores the subtleties and frequent

contradictions inherent in many national cultures (Clark, 2003).

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One of the countries examined by Hofstede was Yugoslavia. No evidence was found

of where Hofstede’s study took place, but it is very likely to have been in

Yugoslavia’s capital Belgrade, in the republic of Serbia. It could be assumed that

these findings could be applied to Croatia, a republic of the former Yugoslavia.

However, Hofstede’s findings could be criticised of generalisation, as no

consideration has been given to the wide diversity of the former Yugoslavia’s

population. According to Soderberg and Holden (2002), Hofstede failed to see the

multicultural realities that already at that time pervaded many European states such

as Great Britain, Belgium, France and Yugoslavia. Serbians and Croatians have a

different language and religion. Historically, Croatia was part of the Austro-

Hungarian Empire and Serbia was occupied by the Ottoman Empire. The Croatians

are pre-dominantly Catholic (95.5% in 1996, according to a study by Kunovich and

Hodson), whereas the Serbians are pre-dominantly orthodox, both having different

religious holidays and resulting values and cultures. According to Kunovich and

Hodson (1999), the former Yugoslavia is and has been the meeting place of the

Roman Catholic, Eastern Orthodox and Muslim faiths. The convergence of these

three religions has led to much competition and conflict throughout the region over

the last seven centuries.

Within a society, a variety of views will be present. It is the majority of these views

and beliefs that will have emerged from the interaction between people living within

the same geographical area. Being a former socialist state (as part of Yugoslavia),

Croatia is still struggling with its impregnated values while at the same time going

through a transitional period in order to manifest itself as an independent state, with a

view to joining the EU in 2007. According to Esping-Anderson (1990), more active

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government intervention in economic co-ordination and the appropriation and

redistribution of economic wealth represents a more socialist economic system,

varying between the centralised planning of the communist system and the re-

distributive welfare of the Western social democracies.

Drawing on Hofstede’s cultural study, where he identified four ‘value’ dimensions

on which countries differed, table 2.1 below summarises Croatian versus Western

‘values’.

Value Dimensions

Croatian Values

Western Values

Power distance - Inequalities between higher/lower hierarchies in organisations - Centralised organisations - To be told what to do - Privilege and status symbols

- Hierarchies only for convenience to manage inequality of roles - Decentralisation - To be consulted - Few, if any, privileges

Uncertainty avoidance - Fear of ambiguity and unfamiliar risk - Uncomfortable with change - Motivated by security and belongingness

- Comfortable with ambiguity - Comfortable with change - Motivated by achievement

Individualism/ Collectivism

- Collectivism - Identity based on social group / network - Maintain harmony and avoid direct confrontation

- Individualism - Identity based on the individual - Tasks more important than relationships

Femininity/ Masculinity

- Femininity - People and relationships more important than money - Work to live - Conflict resolved by compromise and negotiation

- Masculinity - Material success, money and possessions - Live to work - Conflict resolved by direct means

Table 2.1: Summary of Croatian versus Western cultural values, using Hofstede’s

four value dimensions

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The above table shows that the Croatian culture differs greatly from the Western

culture, such as experienced in Great Britain, Germany and the USA. Croatia scores

highly on power distance and uncertainty avoidance, while the West has a low score.

Croatia also displays collectivist and feminine values, while the western countries

display individualistic and masculine values. The table is a useful tool for

highlighting the nature of management and organisations in Croatia, when compared

to western countries.

Jackson (2003) states that this type of approach can lead to stereotyping, and to

expectations about a different culture, which might hamper cross-cultural

communication. However, it should be regarded as a starting point for expatriate and

Croatian managers for working across cultures, highlighting each other’s differences

and assisting in understanding and bridging those differences. If both sets of

managers are aware of the cultural gap, then they can actively seek to close it. There

is a need for managers to be convinced of the reality of cultural difference, and to

take appropriate preparatory action (Jankowicz, 1994).

One of the apparent issues for the Croatia of today is the remaining strong tendency

towards collectivism, which encourages conflict avoidance, group decision-making

and lack of individualism. These issues are backed up by Smith et al. (1994),

according to whom some researchers propose that decisions are typically

participatory in collectivistic – high power distance countries. Collectivistic cultures

emphasise cooperation, interdependence, and group goals, and thus prefer plans that

support group harmony (Anguinis, 2002). According to Triandis (1995), the basic

15

distinction between collectivism and individualism is based on four universal

dimensions, stating that the definition of the self is independent in individualism and

interdependent in collectivism, and that personal and communal goals are not aligned

in individualism but closely aligned in collectivism.

Bearing the above in mind, any global organisation sending expatriate managers to

Croatia must be aware, or must make itself aware, of the cultural differences, to

which certain behavioural patterns will be attached, when expecting positive co-

operation between the expatriate and the Croatian managers. National culture

provides the most common explanation for nation-level differences in individual

work behaviours, attitudes and values (Bond and Smith, 1996). Hofstede (1993)

believes that the spread of business onto the global stage brings the issue of national

and regional differences to the fore. “There is something in all countries called

‘management’, but its meaning differs to a larger or smaller extent from one country

to another”. The meaning of language is explored further in the ‘Education and

language’ section below.

The importance of cultural sensitivity in Eastern and Central Europe has been

highlighted in several studies (Cyr and Schneider, 1996). The evidence suggests that

local managers in these countries often resent the attitude of western managers

frequently seen as arrogant and unwilling to take account of the views of local people

(Soulsby and Clark, 1996). Although Selmer et al. (1994) found that foreign

expatriate managers were perceived by local subordinates to be more supportive than

local managers. Their measure of supportive behaviour included such items as

16

confidence, personal interest, friendliness, information sharing, consultation,

recognition, and job assistance.

2.1.2 Education and Language

In most societies, education is a powerful institution for preserving and perpetuating

the cultural heritage, as well as much of the social structure (Olsen, 1991). It is a

major agent of socialisation, teaching individuals how to function as members of

society.

Other relationship issues, which can arise between expatriate and Croatian managers,

can be attributed to education and language. Although these factors belong to the

overall expression of culture, it is nevertheless worth examining them in their own

right to gain a wider understanding of how to improve conflict avoidance, co-

operation, efficiency and the smooth daily business operation.

Van Deth (1995) established that more accessible educational systems provide more

individuals with the necessary skills to deal with the complicated procedures and

issues in all aspects of life, including work. As such, accessible educational systems

provide more people with the means to deal successfully with complex work. In

turn, more people will have challenging and rewarding jobs and a greater likelihood

that work will be more central.

The first expression of national culture is found in language (Rosenfeld and Wilson,

1999). Despite attempts to create a universal language such as Esperanto, it seems

unlikely to succeed until a universal culture is in place to support it. Language

17

reflects the ‘deep structure’ of national culture (Rosenfeld and Wilson, 1999).

Linguistic ability is also important as it helps to establish contact. However, having

total command of the other language may not be feasible and may be less important

than trying to develop a feel for what matters to others, picking up bits of

‘conversational currency’: local expressions, information, and interests (Byrne,

1992).

Once one passes into the post-socialist countries of Eastern Europe and the former

USSR, then the quest for semantic equivalence is a nightmare, as the languages

concerned have still not developed their lexical resources to cope with Western

management terminology (Holden et al., 1998). This view is supported by

Jankowicz (1994) in his study into English and Polish languages. This study

highlighted that not all English words can be directly translated into Polish and that

there can be some loss of meaning. While no comparable study was found with

regard to the Croatian language, Eudict (online) was used to translate several

business words and similar results were found. Some key words have been

translated in Table 2.2 below.

English word Croatian translation

manager menadžer

computer kompjutor

finance financije

marketing marketing

Table 2.2 Translation of some key business words from English into Croatian

18

The pronunciation of the Croatian translations mirrors that of the English

pronunciation very closely. Other Croatian translations for the English words listed

in Table 2.2 above have been found, but their meanings differ.

According to Brislin (1980), languages are simply linguistic symbols for common

terms and can be translated into an equivalent set of symbols, a different language,

with little loss of meaning. It is important to bear in mind that language does not

only encompass verbal communication. According to Schneider and Barsoux

(1997), much is communicated in what is not said. Being able to read non-verbal

signs and body language is crucial.

Schneider and Barsoux (1997) state that efforts to speak the local language may have

more symbolic than practical value, but the impact is highly significant, as it

indicates a willingness to communicate and to connect with host nationals. Choice

of language can create winners and losers, as language dominance is often

synonymous with power and influence.

When President Kennedy visited Berlin during the Cold War, he wanted to

strengthen the relationship between the people of Berlin and the people of the USA.

He famously stood on a platform by the Berlin Wall and said: “Ich bin ein Berliner!”

(translated: I am a Berliner - interpreted: I am a doughnut, which also has the same

connotation). The people of Berlin laughed, waiting for the punch-line, which did

not come. What President Kennedy had used was a direct translation from the

English language into German. If he had been educated to the fact that a ‘Berliner’ is

a doughnut and not a person from Berlin, he would not have used this statement.

19

Therefore, managers have to be careful when building relationships with their

counterparts to ensure that the language they are using is appropriate and not

misunderstood.

2.1.3 Managerial Competence

Managerial competence in directing a global company in a multi-national

environment is essential. Michael Argyle’s (1967) skills model (see Appendix A)

can be utilised to identify ‘competence’ or ‘skilled performance’, by addressing the

following factors:

- the motivation to perform

- knowledge and understanding of what is required

- the ability to translate knowledge into specific behaviour

- the performance itself which provides evidence that the above three factors

are present.

The competences of an expatriate manager (see Appendix B) can ensure successful

training and re-direction of the thinking process of Croatian managers, if required, in

order to understand the mission and the objectives of the relevant organisation. It is

often the case that expatriate managers are in the host country, such as Croatia, for

only a short period of time, approximately 2 years. Therefore, the aim is to enable

the expatriate managers to hand over the management position to the Croatian

manager successfully, including delegation of certain tasks by themselves and in turn

the delegation of routine tasks by the Croatian managers to their own subordinates.

20

Successful delegation of authority and responsibility depends on interpersonal

communication, the foundation of a dynamic functioning of an organisation. (Zugaj

and Bojanić-Glavica, 1996).

Hiltrop and Janssens (1990) assert that the demand for expatriates is increasing as a

result of a rapid growth of multinational companies and international joint ventures,

and as expatriates meet the needs of a parent company to implement corporate

strategy or to supply a skill or knowledge which is not available locally. Phatak

(1992) lists nine skills that companies can look for when selecting their expatriate

manager:

(1) Technical ability

The expatriate manager should be qualified for the particular assignment and

should be able to train the Croatian manager and to transfer knowledge

successfully. This ability will stem from the expatriate’s quality of education

and professional training and will help to make the Croatian manager more

receptive to new ideas and co-operation.

(2) Managerial skills

The methods and techniques applied by the expatriate manager to

communicate and interact with the Croatian manager will determine the

degree of success of the overall achievement of company goals. The

managerial skills will be fundamental to overcome any animosity or lack of

21

cooperation they may encounter, by drawing on experiences from past foreign

assignments and through the use of various management techniques,

depending on the situation that presents itself.

(3) Cultural empathy

Sensitivity to the host country culture and a non-judgmental understanding of

other cultures is essential (Jackson, 2003). This empathy will allow the

expatriate manager to understand that there are differences between the two

cultures and to identify what they are and where their roots are.

(4) Adaptability and flexibility

According to Jackson (2003), this includes the ability to integrate with other

cultures, being adaptable to change, having the ability to solve problems,

being sensitive to differences in different cultural situations and the flexibility

to manage a continuous operation despite gaps in information and assistance.

The expatriate manager should possess both of these qualities to assist with

integration with Croatian managers.

(5) Diplomatic skills

The expatriate manager will also require diplomatic skills, which may be used

when negotiating on behalf of the company with Croatian managers, banks,

auditors, etc., and when mediating to resolve conflicts. These diplomatic

22

skills will be useful when tackling delicate situations arising from cross-

cultural differences, thus bridging the cultural gap.

(6) Language aptitude

The ability to learn the language may prove a positive strategy to show

willingness to integrate in Croatia and to ease communications with Croatian

managers. It may help in establishing good relations with co-workers and

instil trust between the expatriate and Croatian managers.

(7) Personal motives

If the expatriate manager has a positive motive for taking the assignment in

Croatia, this will prove profitable in the long term, as he/she will be

genuinely interested in the local culture and will strive to integrate quickly

and to gain a greater understanding of Croatia, its people and their customs.

This integration will be reflected at the workplace and will lead to closer and

better relationships with Croatian managers, resulting in advantages to the

company as a whole.

(8) Emotional stability and maturity

This involves having the staying power and emotional maturity to maintain

stability in a foreign environment, as well as being non-judgemental in

relationships with others (Jackson, 2003). The nature of the expatriate role

23

would deem it necessary to have a more mature manager profile, preferably

with previous international experience, which may support the fact that

integration could happen faster and smoother.

(9) Adaptability of family

For the Croatian assignment to be successful, it is important that the

expatriate’s family is willing to move and to adjust to the Croatian culture,

which will support the work of the expatriate manager. Lack of family

support can lead to underperformance, diminishing the interest in the

assignment and the work to be done.

The nine expatriate skills above are unlikely to be found in one individual alone. For

example, a manager with a high technical ability may well not have fully developed

interpersonal skills. This is often said of Accountants and Information Technology

(IT) Professionals. A balance should be struck between all nine criteria to ensure

that the most suitable candidate is selected, with the capability of taking on the

Croatian assignment, ensuring a good working relationship with the Croatian

managers is established, and completing it successfully.

The desirable skills of an expatriate manager, as listed above, have been confirmed

by a survey of 50 international companies, undertaken by the Ashridge Management

College (see Appendix C), which shows the most valued characteristics of

international management (Barnham and Oates, 1991).

24

According to Schneider and Barsoux (1997), international managers have to manage

different cultures at home and abroad, as well as within themselves. They also state

that being an effective international manager may depend upon different identities,

which can contribute to seeing oneself and being seen by others as effective (see

Figure 2.1).

IDENTITIES

Figure 2.1 Influence of different identities on the effectiveness of an international

Manager (Schneider and Barsoux, 1997)

Tung (1982) states that firms select expatriates for overseas assignments almost

exclusively on the basis of technical competence, typically as demonstrated by past

performance in the domestic setting. Many management skills do not transfer from

one country to another and a manager who performs well in the domestic setting may

not be able to adapt to managing in a different cultural setting or even in living in

International Manager

Family

Function

Industry

Education

Region

Religion

SES

Hobby

Country

Company

Gender

Age

25

intimate contact with members of another culture (Andreason, 2003). This area will

be further explored under the IHRM section in 2.2 below.

2.2 Examination of adjustment issues facing both expatriate and Croatian

managers

2.2.1 Expatriation

What is necessary for managing cultural differences is often referred to as a global

mindset. This is defined by Evans et al. (2001):

‘The concept of global mindset helps to differentiate between expatriate and

global managers. Expatriates are defined by location, as managers who are

working in a different country from their own. In contrast, global managers

are defined by their state of mind. They are people who can work effectively

across organisational, functional and cross-cultural boundaries.’

Global expansion is increasingly achieved through alliances and joint ventures, as

well as cross-border mergers and acquisitions (Schneider and Barsoux, 2003).

Boyacigiller and Adler (1991) argue that the internationalisation of markets has

undoubtedly led to significant increases in cross-cultural business interactions, and in

the use of expatriate managers in global business enterprises, without a

corresponding appreciation of the problems this entails and of the knowledge and

awareness this demands.

26

According to the Eaton Consulting Group (ECG, online), leading-edge global

companies are taking steps to address the cross-cultural competencies of both their

people, and their systems and processes. They are conducting organisational

assessments to identify where they are truly ‘global’ (see Table 2.3 below), and

where they are merely exporting mindsets, business practices, systems and processes

from corporate headquarters out to the rest of the world, and assuming what works at

home will work abroad. Jackson (2003) states, that when a corporate message is

taken directly from the home country and implanted in the host country, management

techniques and methods may result which are inappropriate to the host culture.

• Third culture mindsets exist throughout every activity

• Global competency assessment centres have been set up

• Global simulations and psychometric instruments are part of the recruitment and

people development programs

• Global leadership competency models serve as their benchmark for development

• Global leadership development programs exist, and are led by global consultants

• Globalisation strategies are developed by truly global senior teams, and

implemented in cooperation with global experts/consulting firms

• More coaching and less training

• Multinational teambuilding that involves a truly global team, and develops global

human-interaction systems

Table 2.3 Best Practice Initiatives for global organisations (ECG, online)

27

Varner and Palmer (2002) state that the growth of the international sector means

more and more managers need to have some knowledge of operations that extend

across borders. One way is through working abroad and ‘expatriation’. An

expatriate is an employee who moves from one country to another while remaining

on the employing organisation’s payroll (Varner and Palmer, 2002).

The evidence is that demand for more competent expatriate employees continues to

increase (Gregersen et al., 1998). As companies strive to compete in a global

market, these companies will need a pool of experienced expatriate employees, who

are prepared to accept assignments in line with international company expansion.

Selmer (2001) states that it is a common strategic interest of globalising firms to try

to develop a pool of internationally mobile expatriate managers.

Expatriates usually represent home companies when they assume coordinating and

managerial roles in local working units (Tung, 1998). These jobs tend to be

automatically associated with high role conflict, ambiguity, and overload due to the

necessity of constantly coordinating efforts to meet the interests of both local and

home partners (Wang, 2002).

As stated by Mike Platt (2002), an expatriate manager needs to gain a solid insight

into the mindset of their new client base and the wider market at large. The secret, if

there is one, is not just to be prepared to learn that which you don’t know, but also to

unlearn that which you do. For the expatriate manager even the most basic

knowledge may prove false in the Croatian environment.

28

Increasingly, multicultural teams are used to pool expertise across functional,

company, and national boundaries, leading to better decision-making, greater

creativity, more responsiveness to different customers, and easier local

implementation of strategy. But in order to realise this promise, multicultural teams

have to create the right tension between integration and differentiation, to build

shared expectations while preserving the enriching differences (Schneider and

Barsoux, 2003).

Black and Gregersen (1992) suggest that to be successful, expatriate managers must

learn to be ‘dual citizens’ to both the local office and headquarters by managing

commitment and responsibility to each.

According to Richards (1996), positive consequences from expatriate life include:

fulfilment of a search for adventure, the satisfying and memorable experiences, the

insights into cultural differences and oneself, and the excitement of the confusing

feeling of being a ‘stranger in a strange land’. In contrast, Hofstede (1980) found

that ‘forced exposure to an alien cultural environment can put people under heavy

stress’.

2.2.2 Host Country Nationals

Bell and Harrison (1996) state that in most international operations lower level

employees tend to be HCNs. Managers tend to be parent country expatriates whose

previous intercultural experiences are limited (Hait, 1992).

29

Even though research has shed light on managing overseas assignments and the

associated policies, scholars have not clearly considered the effects these policies

might have on the local colleagues of the expatriate. This is unfortunate, since HCNs

are valuable socializing agents, sources of social support, assistance, and friendship

to fledgling expatriates (Black et al., 1991). Very little research literature has been

found with regard to Croatians and their role as HCNs. This is referred to as the so-

called ‘donor-problem’ (Michailova, 1997).

Toh and Denisi (2003) state that there are vast differences between HCNs and

expatriates in terms of their skills and experiences, their economic opportunities, and

the level of positions typically held by HCNs and expatriates in the host unit. In

addition, the world in which global businesses operate is changing. Host countries

are now more advanced economically and socially, and their workers are becoming

more skilled and qualified to hold higher-level positions that would have required

Headquarter expertise in the past (Hailey, 1996).

According to Major and Deaux (1982), it is conceivable that if the HCNs and

expatriates are distinctive in appearance, then national identity differences will be

salient, especially if the expatriates are from a culturally distant country, compared to

the HCNs. If HCNs increasingly work intimately alongside expatriates (Hailey,

1996), either as co-workers, subordinates, or, in many instances, even superiors, they

are often in a good position to evaluate the expatriates’ deservingness on the basis of

the expatriates’ qualifications and performance, as well as the their shortcomings and

inadequacies (Leung and Morris, 2000).

30

2.2.3 International Human Resource Management

Brewster et al. (1992) state that:

‘HRM in Europe is complex. There is no other region in the world where so

many different histories, cultures and languages exist in such a relatively

small space. Each European country has its own approach to the

employment of people; its own laws, institutions, trade unions, education

and training provisions, and managerial culture. In many European

countries these approaches operate at a number of geographical levels.

Overlapping this complicated picture there is now the unique supra-

national legislation of the European Community.’

Even though Croatia is not yet in the EU, in preparation for its accession it is

adopting the supranational legislation of the EU. It is believed that the introduction

of common legislation and agreements between countries of the EU will eventually

lead to harmonisation of HRM systems across different national contexts (Brewster,

1994).

There are three major purposes for using expatriates, proposed by Edstrom and

Galbraith (1994): to fill international positions when qualified locals are not

available, for management development, and to help control, co-ordinate and assist

in the transfer of a firm’s culture.

The success of relationships between expatriate and Croatian managers depends to a

considerable degree on the quality of the company’s human resources and on how

31

effectively these critical resources are managed and developed (Stroh and Caligiuri,

1998). According to Scullion and Brewster (2001), Europeans find that technical

expertise and domestic track record are by far the dominant selection criteria.

Factors such as language skills and international adaptability seem to have more

importance for European organisations (Tung, 1982). However, as Black and

Gregersen (1991) speculated, evaluation of overseas experience should not be based

on simply whether or not the expatriate has overseas experience – the quantity,

quality and location of overseas experience should also be taken into account.

McNulty and Tharenou (2004) identified nine HRM practices from the literature as

the major HRM practices taking place before, during and after an international

assignment in most MNCs (Becker et al., 1997; Farid and Buda, 1998).

1. Planning the Assignment

2. Recruitment and Selection of Expatriates

3. Implementing the Relocation Program

4. Compensation

5. Training and Development

6. Family Support Practices

7. Performance Management

8. Turnover

9. Repatriation

HRM departments may find it difficult to measure expatriate performance, but will

need to, because they are amongst the most expensive people any organisation

32

employs (Scullion and Brewster, 2001). Scullion (1999) suggests that preliminary

European evidence of models of expatriate IHRM developed for MNCs may not be

appropriate for international SMEs. Also, Scullion and Brewster (2001) found that

recent European research highlights the importance of country specific factors and

highlights differences between countries in international staffing practices.

Poor expatriate selection is linked to expatriate failure, which is usually defined as

the premature return of an expatriate manager (Tung, 1981). More recent European

research confirms Tung’s European results and suggests that expatriate failure may

be a less significant issue for European MNEs (Price Waterhouse, 1997-98). Their

research also showed that cultural awareness training is the most common form of

pre-departure training for expatriates in Europe, but that it continues to be offered

more on a voluntary than a compulsory basis. Meanwhile, Cendant (2001) found

that 63% of expatriate assignments in Europe failed.

According to Kealey and Protheroe’s (1996) analysis, there are four methods of

cross-cultural training programs for the expatriate manager:

1. to provide the practical information on living conditions in the host country

2. to study political, economic, and cultural facts about the host country

3. to obtain cultural awareness information on the host culture

4. experiential learning activities that combine cognitive and behavioural

techniques

33

Expatriates can add more economic value to the firm than local employees or HCNs

in the long term (McNulty and Theranou, 2004). Selmer (2001) found that a

common practice is to reduce the number of expatriates through localisation, by

transferring them to local terms and conditions at the end of an assignment when the

individual employee is expected to stay on in that location for an indefinite period of

time. Harvey (1993) however, states that it is not always feasible, particularly when

the host country is far less developed and the local pay structure too low to provide

any incentive for the expatriate to accept the assignment.

According to Radošević (1994), Croatia still finds that the quality and flexibility of

employees will remain a longer-term problem. Accustomed to a clearly prescribed

set of tasks, the labour force has to learn to become ‘all round players’. The lack of

awareness of the importance of skilled labour and of employees as a company’s

strategic asset is common. The fear of dismissal is increasingly reflected in work

discipline.

2.2.4 Adjustment

Adjustment is defined as the degree of psychological comfort felt regarding an

expatriate’s host country situation (Gregersen and Black, 1990). Black et al. (1991)

made a distinction between three dimensions of in-country adjustment: adjustment

to work, adjustment to interacting with HCNs and adjustment to general non-work

environment.

Toh and Denisi (2003) suggest that expatriates are more likely to adjust when HCNs

engage in behaviours outside their work role, than when HCNs are uncooperative or

34

antagonistic (as outlined above). HCNs have an important role to play in the

adjustment process, yet researchers, at present, have overlooked this important

organisational stakeholder (Toh and Denisi, 2003). Toh and Denisi (2003) drew

upon Runciman’s (1966) theory of relative deprivation (RD) and suggest that

understanding HCNs justice evaluation is imperative, because the helping behaviours

directed at the expatriate can facilitate expatriate success (Black et al., 1998). After

all, HCNs do engage in social comparisons to evaluate their positions in a social

structure (Ofshe, 1972).

One significant deprivation, which is experienced by HCNs are the pay discrepancies

between themselves and expatriate managers, particularly with headquarter

expatriates consistently receiving relatively preferential treatment (Harvey, 1993). If

HCNs observe expatriates getting paid far more for similar responsibilities, they may

become resentful (Gladwin & Walter, 1980). Any potential feelings of injustice may

lead to serious and negative relationship issues (Scholl et al., 1987). Researches

have found that different cultures vary in terms of justice sensitivity (Major and

Deux, 1982). Schmitt and Dorfel (1999) have defined justice sensitivity as the

‘perceptual threshold for the violation of justice norms’. The justice sensitivity

influences the likelihood of detecting unfair distributions, the probability of reacting

to the unfairness, and the kinds of justice restoration efforts that the individual will

adopt (Schmitt and Dorfel, 1999).

While pay may be a cause of RD and injustice, in certain cultures justice may not be

defined in terms of pay. In feminine and collectivist cultures, such as Croatia

(Hofstede, 1991), and as outlined in Table 2.1 above, justice is deemed as served if

35

moral duties and interpersonal responsibilities are met. Therefore, rewards such as

recognition, status, and social support may be of greater value to recipients than pay.

Such situations may cause the Croatians to be less concerned with pay discrepancies

and they are unlikely to experience RD as long as other benefits received meet their

needs (Deutsch, 1985). In contrast, western cultures are individualistic and

masculine (Hofstede, 1991) and expatriate managers from western countries will

want to be remunerated for their position, status and the relocation itself. An

emerging trend found by Mervosh (1997) is that top management is making it clear

that since an international assignment is critical to career development, special perks

and compensation are not necessary for expatriates.

Adjustment can be facilitated by cross-cultural training by involving the gradual

development of familiarity, comfort, and proficiency regarding expected behaviour

and the values and assumptions inherent in the new culture (Black and Mendenhall,

1990). Shim and Paprock (2002) and Black and Gregersen (1991) found that habits

or behaviours that the expatriate takes for granted at home may be regarded as

inappropriate or even unacceptable in a new context. Cross-cultural adjustment thus

requires the acquisition of new behaviours that are better suited to the host culture.

Shim and Paprock (2002) found several learning situations that were helpful in

reducing expatriates’ difficulty with adjustment:

• Previous experiences in the host or other country

• Language competency

• Searching information on their own

36

• Help from host country friends, peers or other expatriates

McNulty and Tharenou (2004) also found that customised training and development

programs can lead to more realistic expectations and higher levels of cross-cultural

adjustment. If cross-cultural preparation is found to be inadequate, then the

expatriate and Croatian managers could suffer culture shock.

Culture shock has been covered by several writers. Black (1990) defines it as the

expatriate’s reaction to a new, unpredictable and, therefore uncertain environment.

This could also apply to Croatian manager’s reaction to a new, unpredictable and

uncertain environment. Bock (1970) sees culture shock as being an emotional

reaction to an inability to understand, control and predict the behaviour of others.

Weissman and Furnham’s (1987) definition is:

‘Culture shock is a stress reaction where salient physiological and physical

rewards are generally uncertain, difficult to control or predict and a

sojourner remains anxious, confused, and sometimes apathetic or angry until

he or she had time to develop a new set of behavioural assumptions that help

him or her to understand and predict the social behaviour of the local

natives.’

Culture Shock is more likely to occur with higher levels of culture novelty and

expatriates with higher levels of culture novelty may require more extensive pre-

departure training and in-country support (Andreason, 2003). Cultural novelty refers

37

to the degree of difference of the country of expatriation from the expatriate’s home

country (Hofstede, 1984).

Studies have generally assumed that the adjustment process is the same for all

expatriates (Shaffer et al., 1999). Shaffer et al. (1999) also state that an implicit

assumption of the Black et al. (1991) model is that it applies equally well to all

expatriates. They also state that the adjustment process may be more complex,

differing under certain contextual, structural and personal conditions. Poor

adjustment manifests itself in job dissatisfaction as well as intentions to prematurely

quit the assignment (Bhaskar-Shrinivas et al., 2004). Holden (2002) presented a

thematic model of core problems and core solutions in cross-cultural management

literature (see Figure 2.2 below).

Evidence of successful cross-cultural relationships in Croatia was found in the ECG

Case Study (ECG, online) where four dominant, but starkly different cultures

(Croatia, Turkey, UK and USA) were brought together to construct the Zagreb to

Split motorway. All the key players at management level went through cross-

cultural training to better understand the ‘why’ behind each other’s behaviour, based

on cultural factors. These managers were aware of their differences, understood

them and this helped the expatriate and Croatian managers to adjust to each other.

38

Figure 2.2 Thematic model of core problems and core solutions in cross-cultural

management literature (Holden, 2002)

According to Schneider and Barsoux (1997), respecting the behaviour and ideas of

others requires empathy. Some individuals find it easier to appreciate the thoughts,

feelings, and experiences of others. Focused listening and a non-judgmental

approach help managers to understand the other person’s viewpoint. But one’s

capacity for empathy is deeply routed in one’s character and may not be a skill easily

acquired (Schneider and Barsoux, 1997).

Ultimately, it will be the responsibility of both, the expatriate and the Croatian

managers, to work towards building a successful working relationship and to help

each other to adjust to each other’s cultures. One area, which must not be

overlooked, is the issue of trust. Sprenger (2004) states, that within a relationship

Core Problems

Ethnocentricism in the face of:

Cultural diversity experienced as:

Cultural shock which varies with experience and may be lesser or greater in impact

Core Solutions

Adaptation as first reaction to

culture shock

Adjustment as a more permanent and positive

reaction

Development of cross-culture skills possibly through training interventions:

creating ‘the cross-cultural manager’

39

that someone experiences as positive, the most important feature is trust. It has often

been said that trust is the basis for management. Allowing oneself to be managed

means trusting someone. No manager can influence or lead people if he/she doesn’t

have trust. Therefore, the expatriate and Croatian managers must learn to trust each

other.

The fieldwork will investigate cross-cultural complexities of expatriate and Croatian

managers within the same working team and will examine adjustment issues facing

both sets of managers. The conceptual framework upon which the fieldwork will be

based, will encapsulate U-Curve and J-Curve theory, to investigate cross-cultural

relationships and resulting adjustment issues.

2.3 Theoretical Framework - U-Curve Theory and J-Curve Theory

Lysgaard (1955) used a U-shaped adjustment curve to describe movement through

three phases: initial adjustment, crisis and regained adjustment. Later, Oberg

(1960) listed four stages of adjustment to an unfamiliar culture: initial honeymoon,

crisis, recovery and adjustment. In both, the ‘crisis’ phase is where expatriates

experience culture shock. Later a W-curve was proposed by Gullahorn and

Gullahorn (1963), who observed that once expatriates return home they often go

through a similar re-acculturation process, again in the shape of a U, resulting in a

double U, or W-curve.

Most descriptions of UCT include discussions of four stages (Black and Mendenhall,

1991): In the initial stage (honeymoon stage), expatriate and Croatian managers are

40

fascinated by the new culture and are excited about working together. This initial

cultural infatuation is followed by a period of disillusionment and frustration (culture

shock stage), as both sets of managers must seriously cope with working in and with

each other’s new cultures on a day-to-day basis. The third stage (adjustment stage) is

characterised by gradual adaptation to the new cultures and learning how to behave

appropriately according to the cultural norms of expatriate and Croatian managers.

The fourth stage (mastery stage) is characterised by small incremental increases in

the managers’ ability to function effectively with each other’s cultures (see Figure

2.3 below).

There has been criticism of U-Curve Theory (UCT). Weissman and Furnham (1987,

p. 315) say, ‘the empirical literature is highly equivocal, providing only very modest

support for any one pattern’. Richards (1996) states, this is because there has been a

failure to differentiate between different types of sojourners, different degrees of

adaptation to different cultural and physical environments, and adaptation to different

distinct cultural phenomena such as food, language and climate. Thus, the

formulation obscures the very real differences in adjustment pattern between

different types of traveller.

41

Close

WORKING

RELATIONSHIPS

Distant

TIME

Figure 2.3 The U-Curve of Adjustment, adapted to Cross-Cultural Relationships

between Expatriate and Croatian Managers (adapted from Black and

Mendenhall, 1991)

There has been some work in relation to the J-Curve Theory (JCT) of change (see

Figure 2.4 below), which reflects the common experience of things often getting

worse before they get better in circumstances of change (Armstrong, 2003). Black

and Mendenhall (1991) found support for a J-Curve pattern of adjustment in

relationship to cross-cultural adjustment.

Mastery Honeymoon Adjustment Culture Shock

42

Close

WORKING

RELATIONSHIPS

Distant

TIME

Figure 2.4 The J-Curve of Change, adapted to Cross-Cultural Relationships

between Expatriate and Croatian Managers (adapted from Armstrong,

2003)

This study will investigate UCT and JCT with regard to cross-cultural relationships

of expatriate and Croatian managers in a Croatian working environment, and which

model is more applicable. All of the seven subsidiary themes outlined in 2.1 and 2.2

above influence the expatriate managers and the Croatian managers adjustment to

their cross-cultural relationship in the Croatian working environment. Interview

questions will be used to interview both expatriate and Croatian managers to

Mastery Adjustment Honeymoon Culture Shock

43

determine the skills and knowledge required by either manager to establish cross-

cultural relations. In addition, the interview questions will explore barriers to cross-

cultural working and adjustment issues.

The expected outcome of this study is that the relationships between expatriate and

Croatian managers follow the U-Curve pattern. It is anticipated that both parties will

experience the four stages of honeymoon, culture shock, adjustment and mastery at

some stage in their cross-cultural working relationship.

The following chapter will describe the research methodology, including sample and

procedure, preparation of the questionnaire used, and what particular methods and

techniques were employed to collect and analyse primary data.

44

3 RESEARCH METHODOLOGY

3.1 Research Paradigm

The research paradigms, which were considered for the collection of research data

were positivistic and phenomenological paradigms.

Positivism is concerned with working with an observable social reality and the end

product of the research can be law-like generalisations similar to those produced by

the physical and natural scientists (Remenyi et al., 1998). Here, the researcher

assumes the role of an objective analyst, who interprets the collected data in a

completely objective value-free manner, which then lends itself to statistical analysis.

Critics say that rich insights into this complex world are lost if complexity is reduced

entirely to a series of law-like generalisations. We are constantly being told of the

ever-changing world of business organisations, if we accept that the circumstances of

today may not apply in three months’ time, then some of the value of generalisation

is lost (Saunders et al., 2003).

Phenomenological paradigm is concerned with the necessity to discover details of a

situation to understand the reality working behind it (Remenyi et al., 1998). Not

only are business situations complex, they are also unique. They are a function of a

particular set of circumstances and individuals. This follows from the interpretivist

position that it is necessary to explore the subjective meanings motivating people’s

actions in order to be able to understand these (Saunders et al., 2003). Lester (Lester,

online) states that the purpose of the phenomenological research is to gather deep

45

information and perceptions through inductive, qualitative methods such as

interviews, discussions and participant observations, and representing it from the

perspective of the research participants. Adding an interpretive dimension enables it

to be used as the basis for practical theory, allows it to inform, support or challenge

policy and action.

The adopted research paradigm is phenomenological, because the data collected is

qualitative, which is defined as:

‘… an array of interpretative techniques which seek to decode,

describe, translate and otherwise to come to terms with the meaning

not frequency of certain more or less naturally occurring phenomena

in the social world.

Van Maanen (1993)

This approach was taken so as to actually see the interviewees in their natural setting,

giving less risk of misinterpretation and thus more accurate and valid data. Saunders

et al. (2003) have found that managers are more likely to agree to be interviewed,

rather than complete a questionnaire, especially where the interview topic is seen to

be interesting and relevant to their current work. An interview provides them with an

opportunity to reflect on events without needing to write anything down. Other

researchers report similar conclusions, where participants prefer to be interviewed

rather than fill in a questionnaire (North et al., 1983, cited in Healey, 1991). This

situation also provides the opportunity for interviewees to receive feedback and

personal assurance about the way in which information will be used.

46

Saunders et al. (2003) identified four data quality issues in relation to the use of

semi-structured interviews: reliability, bias, validity and generalisability.

The nature of semi-structured interviews, lack of standardisation, may lead to

concerns about reliability. Findings derived from such interviews are not necessarily

intended to be repeatable since they reflect reality at the time they were collected, in

a situation which may be subject to change (Marshall and Rossman, 1999).

However, the value of using this non-standard approach is derived from the

flexibility that may be used to explore the complexity of the topic. Therefore, an

attempt to ensure that qualitative, non-standard research could be replicated by other

researchers would not be realistic or feasible without undermining the strength of this

type of research (Saunders et al., 2003).

The concern about reliability in semi-structured interviews is also related to issues of

bias: interviewer and interviewee bias. The interviewer bias concerns comments,

tone, non-verbal behaviour and interpretation of responses (Easterby-Smith et al.,

2002). Interviewee bias can be caused by perceptions about the interviewer or in

relation to perceived interviewer bias. The points listed in Table 3.1 below will need

to be considered by the interviewer to avoid bias.

47

• Interviewer’s own preparation and readiness for the interview.

• The level of information supplied to the interviewee.

• The appropriateness of the interviewer’s appearance at the interview.

• The nature of the opening comments to be made when the interview

commences.

• The interviewer’s approach to questioning.

• The impact of the interviewer’s behaviour during the course of the interview.

• The interviewer’s ability to demonstrate attentive listening skills.

• The interviewer’s scope to test understanding.

• The interviewer’s approach to recording information.

Table 3.1 Key measures to overcome bias in qualitative interviews (Saunders et al.,

2003)

According to Saunders et al. (2003) validity is concerned with whether findings are

really about what they appear to be about. The high level of validity that is possible

in relation to qualitative interviews that are conducted carefully is made clear by the

following quotation:

‘The main reason for the potential superiority of qualitative

approaches for obtaining information is that the flexible and

responsive interaction which is possible between interviewer and

respondent(s) allows meanings to be probed, topics to be covered

from a variety of angles and questions made clear to respondents.’

(Sykes, 1991, cited in Healey and Rawlinson, 1994)

48

With regard to this dissertation, the qualitative research will not be able to be used to

make generalisations about the entire population, because it is based on a small

number of interviews and the circumstances may be subject to change.

3.2 Sample and Procedure

The aim of this study is to investigate relationships between expatriate and Croatian

managers. The research will concentrate on both cross-cultural complexities within a

Croatian working environment, and adjustment issues facing expatriate and Croatian

managers. The results of the research will be applied to UCT and JCT with regard to

adjustment issues emerging from cross-cultural relationships of expatriate and

Croatian managers, to discover which model is more appropriate. The research

method chosen, in the form of semi-structured interviews, is discussed below.

The research samples were randomly selected from a list of foreign businesses in

Croatia, regardless of industry or sector. This list was acquired from a leading

government trade organisation.

This research involved interviewing eight managers working in a cross-cultural

working environment in Zagreb, the capital of Croatia. Easterby-Smith et al. (2002)

state that the study of a small sample of subjects may be more appropriate than a

large number, so as to establish different views of relationships. According to Lester

(Lester, online) a common statement concerns sample size – it can be hard to get

49

over to people that a single-figure sample is valid. If the sample size is increased a

common misunderstanding is that the results should be statistically reliable.

The semi-structured interview questions (see Table 3.2 below) used were adapted

from Table 3 in ‘Assessing the potential for effective cross-cultural working between

“new” Russian managers and western expatriates’ (Camiah and Hollinshead, 2003).

These interview questions were formulated for a previous MBA dissertation, making

this approach a tried and tested method, thus contributing to this study’s reliability

and validity through a proven model. Before utilising the interview questions, they

were adapted for the Croatian environment. The only change made was to replace

‘Russian’ with ‘Croatian’, reflecting the area of investigation.

The interview questions will elicit information about two principle areas:

1. Cross-cultural complexities of expatriate and Croatian managers working

together, such as cross-cultural barriers, knowledge and learning.

2. Adjustment problems facing expatriate and Croatian managers.

Anonymity was assured at each interview to participants, ensuring confidentiality,

thus putting interviewees at ease, removing any potential anxiety and encouraging

the interviewees to reflect their honest opinions. Each interview was allocated sixty

minutes, with an allowance for time overrun, if required. This was done to respect

the time of interviewees, but also allowing sufficient time to complete a valid and

50

reliable interview. At the end of the sixty minutes, the interviewees would be asked

if they were willing to continue for an additional amount of time.

Questions to Croatian Managers Questions to Expatriate managers

Adjustment issues Adjustment issues

1. What difficulties are you experiencing as a Croatian manager adjusting to working in Croatia with expatriate managers?

1. What difficulties are you encountering as a western manager adjusting to working in Croatia?

2. What do you think are the reasons for these difficulties?

2. What do you think are the reasons for these difficulties?

Barriers to cross-cultural working Barriers to cross-cultural working

3. What would you say holds up the process of smooth working in a cross-cultural team?

3. What would you say holds up the process of smooth working?

4. What do you most enjoy/least enjoy working on a cross-cultural team as a Croatian manager that you would not experience working in a purely Croatian management team?

4. What do you most enjoy working in Croatia as a western manager that you would not experience in other countries?

5. Can you compare and contrast the differences between working on a cross-cultural team and a purely Croatian team?

5. Can you compare and contrast the difference between working in a cross-cultural team and a purely western team?

Skill, knowledge and learning Skill, knowledge and learning

6. What skills and knowledge would you say Croatian managers had to learn or improve in order to become better international managers?

6. What skills and knowledge would you say western managers have to learn or improve to better cope with working in Croatia?

7. What skills and knowledge would you say expatriate managers should improve in order to perform better in Croatia?

7. What skills and knowledge would you say Croatian managers should improve in order to become better international managers?

8. What organisational advantages and disadvantages do you feel there are in working in a cross-cultural team?

8. What organisational advantages and disadvantages do you feel there are in working in a cross- cultural team?

9. What have you learned from working with an expatriate manager?

9. What have you learned from working with Croatian managers?

10. What do you think expatriate managers have learned from working with you in a cross- cultural environment?

10. What do you think Croatian managers have learned from working with you in a cross-cultural environment?

Table 3.2 Semi-structured interview questions (adapted from Camiah and

Hollinshead, 2003)

51

This semi-structured approach was a useful method for establishing rapport, allowing

a more personal and in-depth interview, which gave greater flexibility for the

interview itself. Semi-structured and in-depth, or non-standardised, interviews are

used in qualitative research in order to conduct discussions not only to reveal and

understand the ‘what’ and the ‘how’, but also to place more emphasis on exploring

the ‘why’ (Saunders et al., 2003). Robson (2002) states that in-depth interviews can

be very helpful to ‘find out what is happening and to seek new insights’. They may

also be used in relation to an exploratory study.

Usunier (1998) suggests that during translation attention should be paid to: lexical

and idiomatic meaning, grammar and syntax, and experiential meaning. Other

factors of significance may be misinterpretation of responses because of cultural

differences between the interviewee and the interviewer (Marshall and Rossman,

1999). These assertions are of great importance with regard to reliability, bias, and

validity. To address these areas a translator was present during the interviews.

The author’s wife is both a Croatian and British national and acted as a Croatian

interpreter (CI). CI is tri-lingual, being fluent in Croatian, English and German

languages. CI was present at all interviews to enable most, but particularly Croatian

managers to have the option of using non-English dialogue, if they chose to, and to

interpret nuances. CI also acted as note taker during the interviews, her presence was

explained and permission gained from all interviewees prior to commencement of the

interview itself. All managers interviewed had an excellent understanding of the

English language and thus communication in English was conducted freely and

openly. Time was given to each interviewee to develop their response, allowing

52

them to first understand the question, develop an answer and then translate it into

English before finally giving a response to a question.

Interview data was recorded instantly through note taking and any additional

information was also recorded to help recall the context and content of each

interview. After the notes were written up, summaries were also produced of key

points that emerged. Any apparent relationships identified between themes were also

noted allowing a return to these to seek to establish their validity.

3.3 Data Collection

Most MNCs with expatriate managers are based in the capital Zagreb. The list of

foreign businesses in Croatia was scrutinized with a view to identifying suitable

companies.

This list contained 45 companies, of which 39 companies were based in Zagreb and

15 were approached. Interviews were conducted at 7 out of these 15 organisations.

The data is represented in Figure 3.1 below. These companies were then plotted on a

city map of Zagreb, grouping them by geographical area.

53

Foreign buinesses in Croatia

45

39

24

15

7

05

101520253035404550

Total B

usines

ses

Zagre

b ba

sed

Not a

ppro

ache

d

Appro

ache

d

Busin

esse

s inte

rviewed

Categorisation of Businesses

Number of

Businesses

Figure 3.1 Suitable foreign businesses in Croatia for Research purposes

From the 15 companies approached, it was possible to speak to 20 suitable managers.

Of these 20 managers, 12 were expatriate managers and 8 were Croatian managers.

At one of the 7 companies 2 interviews were granted, one with an expatriate manager

and one with a Croatian manager. Altogether, 8 interviews were undertaken, 4 with

expatriate managers and 4 with Croatian managers. This data is represented in

Figure 3.2 below.

54

Manager Interview Ratios

20

12

4

8

4

0

5

10

15

20

25

Man

ager

s sp

oken

to

Expat

riate

s sp

oken

to

Expat

riate

s inte

rviewed

Cro

atians

spo

ken

to

Cro

atians

inte

rviewed

Categorisation of Managers

Number of

Managers

Figure 3.2 Suitable Managers for Research Interviews

Robson (2002) advises researchers to adopt a similar style of dress to those to be

interviewed, stating that essentially the interviewer will need to wear clothing that

will be generally acceptable for the setting within which the interview is to occur.

This is important, because appearance may affect the perception of the interviewee

and have an adverse effect on credibility in the view of the interviewee, or result in a

failure to gain their confidence. The resulting bias may affect the reliability of the

information provided. A smart-casual dress code was adopted for these occasions

and found to be acceptable.

A number of authors have reflected upon different types of difficulties with regard to

access to the studied organisation and to individual informants (Andersen et al.,

1995). Buchanan et al. (1988) maintain that negotiating access is a game of chance,

55

not of skill. According to Michailova and Liuhto (2000, p.20), collecting field data

in Eastern Europe shows that fieldwork there is not the art of the possible, the art is

to make it possible. They also list a number of specific issues that must be addressed

when conducting qualitative research in Eastern Europe (see Appendix D). Goodwill

on the part of the organisation and its participants is something that external

researchers need to rely on (Saunders et al., 2003).

The approach taken to establish contact was to ‘cold call’, by walking in from the

street and speaking to the receptionist. Great care was taken to explain the purpose of

the visit to the receptionist and a request was made to gain access to either an

expatriate or Croatian manager of the company. Consideration was given to the

possibility of low trust relations between post-socialist managers and academic

researchers. According to Michailova and Liuhto (2000), in Eastern Europe the very

appearance of researchers is still perceived as new and very strange. Managers and

employees in socialist and post-socialist organisations are not at all used to

encountering people from the academia. The vast majority are highly suspicious and

resistant and it requires a great deal of sensitivity and effort to make them providers

of information.

It was evident that the Croatian managers appeared to have a much more relaxed

attitude and were more open to the idea of this research interview. As already shown

above, 50% of Croatian managers spoken to agreed to the interview. In contrast,

only 33% of expatriate managers were willing to make time available. Great skill

had to be used to persuade the expatriate managers into giving their time, whereas

the Croatian managers readily agreed.

56

Prior to each interview the full purpose of the research was explained and a private

room was sought and always made available, to provide the correct environment to

preserve confidentiality and to put the interviewee at ease.

All interviews were completed on a one-to-one basis and in a timely fashion. At no

time was an interview rushed or pressure brought to bear on the interviewee to

respond quickly, in order to finish within the allocated time. Rapport was established

very quickly with refreshments offered by the interviewees prior to each interview.

The order of questions varied depending on the flow of the conversation, and data

was recorded by note taking. Answers were probed to build upon or to gain

explanations from interviewees’ responses, to understand the meanings that the

interviewees ascribed to various phenomena.

At all stages of contact with the expatriate and Croatian managers, from initial

introduction to the end of the interviews, care was taken to be aware of tone of voice

and non-verbal behaviour. The aim of this was to prevent misinterpretation of

responses, which in turn may introduce bias into the research.

Every person spoken to, from receptionists to managers, displayed a good

understanding of the English language. At no time was a potential interview

jeopardised due to language difficulties. This is important to note, as there could be

a perceived bias if interviewee selection was based on language skills only.

57

3.4 Data Analysis

There are many qualitative research traditions or approaches, with the result that

there are also different strategies to deal with the data collected (Coffey and

Atkinson, 1996). Saunders et al. (2003) state that the analysis of qualitative data

involves a demanding process and should not be seen as an ‘easy option’.

The findings of this research will be analysed using the theoretical and conceptual

frameworks outlined in the Literature Review (Chapter 2). Consideration will be

given to national culture, as the analysis of the collected data is performed. The

Literature Review is based on eastern and western studies of cross-cultural

relationships, the data for this study was collected in Croatia.

The notes from the interviews will be written up. They will then be summarised and

categorised. A matrix in the form of an Excel spreadsheet will be designed for the

purpose of categorisation. This will help to identify key themes, allowing the data to

be rearranged and analysed in a systematic and rigorous fashion. This is an

‘interpretivist’ approach and should not be seen as implying less analytical rigour

(Coffey and Atkinson, 1996).

3.5 Limitation of the Research Method applied

An interview is a purposeful discussion between two or more people (Kahn and

Cannell, 1957). In this study, semi-structured interviews were used, with the

researcher having a list of questions to be covered. The data collected was

58

qualitative, making the adopted research paradigm phenomenological. This

‘interpretivist’ approach seeks to understand the subjective reality of those that have

been studied in order to be able to make sense of and understand their motives,

actions, and intentions in a way that is meaningful (Saunders et al., 2003). An

inductive approach to research was taken through the interview process, with the

purpose of getting a feel for the true meaning of responses and so as to understand

better the themes discussed during the interviews.

Participants in this study were chosen randomly in so much that they were not pre-

selected. However, a limitation of this study with regard to the selection process

could be that the range of participants was diminished, because they had to be

working in a cross-cultural environment, with either an expatriate or Croatian

manager. The organisations from which the participants were selected were all based

in Zagreb, the capital of Croatia. If the interviews had been conducted in towns,

rather than a major city, then other cross-cultural and adjustment issues may have

arisen, particularly for expatriate managers. The provincial outlook and attitudes of

local Croatians in towns may be more difficult to adjust to than the contemporary

outlook of city dwellers. This could have a bearing on the validity of the

interviewees and the data collected.

Robson (2002) advises researchers to adopt a similar style of dress to those to be

interviewed. To achieve the right balance for the interviews could have been

problematic, because there is a varied dress code, with some managers having to

wear very formal suits, while other managers have very ‘casual’ attire. Due to time

constraints and the approach of cold calling, identifying and conforming exactly to

59

the dress code for each interview was impractical. From the reaction of those

approached, it can be concluded that the smart casual dress code adopted was found

to be acceptable.

Great care was taken to keep each interviewee in the same frame of mind before and

during the interview. For the Croatian managers this proved to be relatively straight

forward, they were very open and willing to participate. With the expatriate

managers this proved to be difficult; it was found that considerable skill and coaxing

had to be applied to get them to agree to an interview in the first place. The reasons

given were, that they had busy schedules to adhere to. The validity of the interviews

conducted could be questioned, due to the fact that twice as many expatriate

managers declined an interview when compared to the number of Croatian managers.

This could be a limitation to this study and it is unclear how this limitation impacts

the outcome of this study.

The process of all interviews was of a robust nature; it could be said that they were a

reliable source of cross-cultural data, ensuring validity of the research data collected.

All of the interviews were completed within the allocated time, with no pressure to

rush or end an interview prematurely. A good rapport was established,

confidentiality was assured and a relaxed atmosphere prevailed. The interviewees

proved to be very open, willing and honest participants. At no time was there any

reason to doubt the truthfulness of the responses. Non-verbal communication was

monitored continually to try to ensure that the responses were a true and fair

reflection of the interviewees’ experiences, and that the true meaning was being

correctly interpreted. The findings of these interviews are not necessarily intended to

60

be repeated, since they reflect reality at the time they were collected, in a situation

which may be subject to change (Marshall and Rossman, 1999).

A limitation of the interpretation of the data findings could have arisen from the

previous expatriate and cross-cultural experiences of the author. Having been

involved in various cross-cultural environments, and having reflected upon the

familiarity with the subject area, these experiences may have percolated into the

interpretation of the findings. Thus, there may be interviewer bias with regard to

how the findings were interpreted. It is hoped that having been aware of this

potential limitation from the outset, this is not the case. As Delbridge and

Kirkpatrick (1994) note, ‘because we are part of the social world we are studying we

cannot detach ourselves from it, or for that matter avoid relying on our common

sense knowledge and life experiences when we try to interpret it’.

A potential limitation to this study is that a single method approach was employed in

the form of interviews. This research was unable to test the generalisabiliy of the

data gathered. This may have been achieved with the use of quantitative data

gathered through questionnaires. The interviews have given a feel for key issues,

and to subsequently employ a questionnaire may have allowed a larger sample to be

collected and statistically analysed, allowing conclusions to be drawn about the

complete population. Black and Mendenhall (1990) note, that very few studies that

addressed UCT from an empirical perspective actually used statistical techniques in

their analyses. Multi-methods of data collection for the same study are beneficial.

One advantage of using multi-methods is that it enables triangulation to take place.

Triangulation refers to the use of different data collection methods within one study

61

(Saunders et al., 2003) and can overcome potential bias. Saunders et al. (2003)

assert, that since all different methods of data collection will have different effects, it

makes sense to use different methods to cancel out the ‘method effect’. This will

lead to greater confidence being placed on the conclusions of the research. The

findings of the interviews are presented in the next chapter.

62

4 DATA FINDINGS

4.1 Sample Classification

This section presents the biographical data of the interviewees, both expatriate and

Croatian (Tables 4.1 and 4.2 below). It also graphically displays the gender and age

of managers interviewed for this study. As already outlined in the Research

Methodology chapter (Chapter 3), a total of eight managers were interviewed.

Nationality Gender Age Position Sector

British M 50s Director Consulting

British F 40s PR Manager Public Relations

Danish M 40s Managing Director Property Consultant

Danish M 40s Trade Counsellor Trade

Table 4.1 Biodata of Expatriate interviewees

Gender Age Position Sector

F 30s Residential Manager Property Consultant

F 30s Commercial Officer Trade

F 30s Consultant Audit

M 20s Software Consultant Software

Table 4.2 Biodata of Croatian interviewees

From the eight managers interviewed, four were expatriates and four were Croatian

managers. From the four expatriate managers, three were male and one was female

(see Figure 4.1 below). For the Croatian managers interviewed the ratio of male to

63

female was exactly opposite to the expatriates, with one being male and three being

female (see Figure 4.2 below).

Gender of Expatriate Managers

3

1

Male Female

Gender of Croatian Managers

1

3

Male Female

Figure 4.1 Gender of Expatriate Figure 4.2 Gender of Croatian

managers interviewed managers interviewed

From the four expatriate managers, two male and one female were between 40 and

50 years old, and one male was between the ages of 50 and 60 years. (see Figure 4.3

below). From the Croatian managers interviewed, one male was between the age of

20-30 years and three female manages were 30-40 years old (see Figure 4.4 below).

From the data on managers’ ages, it is evident that all expatriate mangers are older

than the Croatian managers.

64

Age of Expatriate Managers

2

1

1

0 1 2 3 4

40-50 yrs

50-60 yrs

Age

Number of managers

Male Female

Figure 4.3 Age of expatriate managers interviewed

Age of Croatian Managers

1

3

0 1 2 3 4

20-30 yrs

30-40 yrs

Age

Number of managers

Male Female

Figure 4.4 Age of Croatian managers interviewed

From the Biodata Tables (4.1 and 4.2 above) it is apparent that the positions of the

expatriate managers are more senior than those of the Croatian managers. Amongst

the expatriate managers are two managers at Director level, with the other two being

65

senior managers. All of the Croatian managers interviewed hold middle-

management positions.

From the four expatriate managers, two were British and two were Danish. Both,

expatriate and Croatian managers interviewed were drawn from a similar mix of

sectors, such as Trade, Consulting, Audit, Software and Public Relations. There is

an even distribution of sectors amongst gender, age, position and nationality.

4.2 Presentation of interview findings

The interviews covered two main areas. These areas were used to categorise the data

to assist with analysis, as presented by Camiah and Hollinshead (2003). The first

category ‘Cross-cultural complexities‘ is sub-divided into ‘Barriers to cross-cultural

working’, which observes obstacles to effective international team working, and into

‘Skill, knowledge and learning’, which observes acquisitions of skills and

knowledge, and opportunities for learning. The second category ‘Adjustment Issues’

observes difficulties encountered by expatriate and Croatian managers and the

perceived reasons for these difficulties. A transcription from an interview can be

found in Appendix F.

66

4.2.1 Cross-cultural complexities

Barriers to cross-cultural working

Three interviewees, two expatriate and one Croatian, felt that there were no specific

barriers. One of the expatriate managers said: ‘There are none’, and ‘the level of

English across all levels of Croatian society is superb’. Another: ‘No hold ups that

you would not expect to find elsewhere.’ The Croatian manager has also experienced

no specific barriers, stating: ‘Croats and other EU managers have the same

problems’.

The other expatriate managers expressed frustration with the lack of efficiency of

their Croatian counterparts and their stubbornness. ‘Things take a lot longer’ was a

statement made. Inflexibility and trust were also raised as barriers to cross-cultural

working. According to one manager:

You have to be a specialist in all matters. You cannot trust the

so called ‘experts’ with any assignments if you want to be sure

that the result should be usable.

One Croatian interviewee found that at first it was very difficult to work with

expatriate managers, ‘as they think that they know everything better’. Another

experience is that expatriate managers are not direct enough when discussing work

related task.

67

One female Croatian manager quoted the lack of promotion opportunities for

Croatian employees as de-motivating when comparing opportunities for expatriates.

Another Croatian manager expressed satisfaction in having received a promotion

recently and felt that there were further promotional opportunities for herself within

the company in the future.

Both, expatriate and Croatian interviewees, spoke about working hours. The

expatriate managers expressed that the Croatians do not work sufficient hours; the

Croatian managers felt that there was pressure to work long hours. According to one

expatriate manager:

There are too many coffee and lunch meetings without reason.

They need to understand that 9-4 is not enough for getting higher

productivity.

One Croatian manager stated:

There in no 9.00 – 5.00 work time. Sometimes I work until 11.00 in

the evening. There are no days off and no calling in sick.

The barriers described in this section are not exhaustive, but are indicative of the

sense that emerged from the interviews. This was summed up by one Croatian

interviewee, who states:

68

The biggest barrier is that people are not willing to accept

differences between cultures and are not willing to make

necessary compromises.

Skill, knowledge and learning

The research exposed perceived differences in speed between expatriate and Croatian

managers in completing tasks, making decisions, and also the way that deadlines to

be met are communicated. The expatriate managers believe that Croatians need to

learn to work faster, improve efficiency, meet deadlines and be more pro-active. In

addition, they need to develop strategic planning, decision-making skills and a more

professional approach to business.

One expatriate manager stated that ‘it is very interesting to hear different views, it

teaches westerners new things as well’. In general, the expatriate managers believe

that they themselves need to learn and understand in greater depth about ‘the break-

up of the former Yugoslavia and the impact that this still has on Croatia’. This is

reflected in one comment, that there is ‘survival thinking’ and another comment that

‘the Croatians have uncertainty of being paid at the end of the month’.

The Croatian managers believe that the expatriate managers need to have better

preparation before taking on an assignment in Croatia. Once the assignment has

been taken on, there also needs to be greater social integration of the expatriates in

the local culture. As one Croatian interviewee stated:

69

Socialise with ordinary Croats and learn about local politics and

best business practice.

There is a need for the expatriate managers to recognise local customs and

differences in business culture when working with Croatian counterparts. This has

been an issue raised by every Croatian manager interviewed. One such comment

was:

The most important thing is that business in Croatia is done in

a different way than in the expatriates’ countries and that their

knowledge and help is appreciated, but Croatian circumstances

have to be accounted for as well as our knowledge.

The Croatian managers acknowledge that they can learn from the expatriate

managers in such areas as delegation and communication skills, better organisation

and control of work. They also admit that they need to change their mindset, because

working in an international environment, performance and results matter.

4.2.2 Adjustment Issues

Expatriate managers have reported that their adjustment issues are mainly concerned

with lack of ownership displayed by Croatian managers. This manifests itself in lack

of responsibility, where ‘a word is not a word’, and the lack of service provided.

The reasons given were said to be the Croatians’ cultural heritage and historical

traditions with roots in the socialist system.

70

According to an expatriate interviewee:

The complete lack of service approach I would say is the worst.

The very narrow minded way of thinking and the proud Balkan

behaviour, which makes it very difficult to discuss or negotiate

issues in general. Croats are in general very nice people but as

for young people they are extremely spoiled and reactive instead

of being proactive and try to change their own situation. They

completely depend on their parental help and support and are often

unable to make any decisions whether or not this concerns

themselves or the business environment they are acting in.

Two of the expatriate managers reported no real adjustment issues. The first stated

that she had worked across the CEE region before moving to Zagreb, and felt that

Croatia is very western orientated in its approach, with strong EU influences. The

second expressed that he has been married to a Croatian national for several years

and has also been on other international assignments in the past.

Croatian managers found that expatriate managers can be condescending, patronising

and arrogant, while one said that this could be ‘a problem of personality not

nationality’. Concerns were also raised about a lack of understanding of the local

market and business customs. Also, it was found that expatriate managers do not

tend to integrate with Croatian culture fully, one female interviewee stated, for

example, that:

71

Expats stick together and tend to side with foreigners when it

comes to differences in opinion.

Another female interviewee remarked:

I think that there are different ways of doing things in Croatia and

different ways of communication between colleagues.

Table 4.3 below summarises the issues, which emerged from the interviews with

both, expatriate and Croatian managers.

Expatriate orientation Croatian orientation

Adjustment Concern about lack of ownership within the work

place, displayed as lack of responsibility and

service approach. Resulting from cultural

heritage and roots in the socialist system.

Barriers to team working Lack of delegation, flexibility, responsibility.

Issues of trust, work practices and stubbornness.

Frustration with speed of task completion.

Skill, knowledge and learning Need to develop strategic thinking, profit

orientation, communication skills,

professionalism, pro-activity, efficiency and

effectiveness.

Adjustment Concern about lack of understanding of local

culture, market and local business customs.

Sense of being patronised. Resulting from

cultural differences, ways of communicating, and

lack of integration of expatriates.

Barriers to team working Expatriates ‘knowing things better’. Pressure of

long working hours, lack of directness and

promotion opportunities. Personality issues.

Skill, knowledge and learning Need for recognition of local customs and

differences in business culture when making

decisions. Social integration, and better

preparation before international assignment.

Table 4.3 Summary of findings (adapted from Camiah and Hollinshead, 2003)

72

The analysis of these data findings will be discussed in more detail in the following

chapter.

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5 ANALYSIS AND DISCUSSION

5.1 Cross-cultural complexities

Working with cross-cultural complexities in a Croatian working environment

depends largely on the development of cross-cultural management skills. Adler

(1991) defines cross-cultural management as follows:

Cross-cultural management studies the behaviour of people in

organisations around the world and trains people to work in

organisations with employee and client populations.

It describes organisational behaviour within countries and

cultures; compares organisational behaviour across cultures

and countries: and perhaps, most importantly, seeks to under-

stand and improve the interaction of co-workers, clients,

suppliers, and alliance partners from different countries and

cultures. Cross-cultural management thus expands the scope

of domestic management to encompass the international and

multicultural spheres.

Holden et al. (1998) and Jankowicz (1994) found that language could be a major

barrier to cross-cultural working. They found that CEE languages have still not

developed their lexical resources to cope with Western management terminology.

Their studies highlighted that not all English words can be directly translated and that

there can be some loss of meaning.

74

The results of this research study indicate that language is not a barrier for either,

expatriate or Croatian managers during their team working. This has been confirmed

during the actual interviews, which were conducted in English, while having a

translator present. The level of English was of a very high standard throughout and

all nuances could be captured. The only time that language was mentioned in an

interview was by one expatriate interviewee, to express the high level of English in

Croatia, both at work and during leisure. According to The Economist (2004),

knowledge of English in central Europe has become a basic skill of modern life

comparable with the ability to drive a car or use a personal computer.

It could be said that the studies carried out by Holden et al. (1998) and Jankowicz

(1994) do not apply to Croatia, but it could also be said that were the studies to be

repeated, similar findings would now also be found in Poland and other CEE

countries. Had Jankowicz carried out his 1994 study in Croatia, instead of Poland,

then the findings of that study may well have had the same outcome for Croatia, as

they had for Poland. In the ten years since the study, the use and understanding of

the English language across all CEE countries may well have improved considerably,

although not replaced the national language. The Economist (2004) states that the

rise of English as a lingua franca will not necessarily do much to diminish arguments

over national languages within or between countries in places like the Balkans or the

Baltic States.

In this study, communication was found to be strong, due to the high level of the

English language amongst expatriate and Croatian managers. The only

75

communication issue that arose during interviews was that the Croatian managers felt

that the expatriate managers needed to be more direct when discussing work related

tasks. There may be circumstances when the Croatian managers do not fully

understand instructions given by the expatriate managers, leaving room for

ambiguity and misunderstanding. This can result in tasks not being completed

correctly or schedules being missed. Two of the expatriate managers reported issues

with being able to delegate work to Croatian managers, the need to closely monitor

what was being done and the time frames in which the work was completed.

According to the research findings of this study, a significant barrier to cross-cultural

working involved working practices. Expatriate managers expect Croatian managers

to adhere to western working practices, for example working hours. One of the

Croatian managers complained that she was expected to work longer hours most of

the time. Expatriate managers expressed the need for Croatian managers to work

longer hours and to work more efficiently, so as to meet deadlines and become more

effective managers. It can be concluded that Croatian managers have not understood

the need to take responsibility for the timely completion of their workload. They still

expect to take their coffee and lunch brakes and to finish work at pre-prescribed

times, regardless of organisational needs.

It is general knowledge that senior managers in western countries work longer hours

than middle and lower management. According to this study, the expatriate

managers’ positions were more senior than those of the Croatian managers. Wang

(2002) found that these jobs tend to be associated with high role conflict, ambiguity,

and overload due to the necessity of constantly coordinating efforts to meet the

76

interests of both local and home partners. Western expatriate managers, even within

their own culture, expect subordinates to work a similar number of hours to

themselves. To project this western expectation onto a post-socialist culture may be

unreasonable and cause resentment amongst their counterparts.

From this study, a pattern of resentment emerged from the Croatian managers of

being patronised by their expatriate counterparts. They expressed the opinion that

the expatriate managers projected that they ‘know things better’. The Croatian

managers have not taken into account the fact that the expatriate managers will

invariably, in organisational terms, have a higher technical and cultural acumen. One

of the expatriates’ roles is to transfer company values and procedures to the Croatian

managers. It is therefore reasonable to expect that in organisational terms the

expatriate managers should ‘know things better’.

The personality of both sets of managers will affect communication, delegation and

empathy within the cross-cultural team. Zugaj and Bojanić-Glavica (1996) state that

the successful delegation of authority and responsibility depends on interpersonal

communication. This is reinforced by the findings of this study, where problems,

which emerged were attributed to ‘personality not nationality’, and managers’

‘egos’. Schneider and Barsoux (1997) state that one’s capacity for empathy is deeply

routed in one’s character and may not be a skill easily acquired.

As already stated, it has been found that the expatriate managers hold more senior

positions. A similar finding was made by Toh and Denisi (2003) who state that there

are vast differences between HCNs and expatriates in terms of their skills and

77

experiences, their economic opportunities, and the level of positions typically held by

HCNs and expatriates in the host unit. In this study, the expatriate managers at

Director level displayed a greater understanding of cross-cultural complexities, when

compared to the other expatriate managers, and seemed more at ease with

understanding and accepting these. This manifested itself through positive and

forward-looking responses about the Croatian working environment. The other two

expatriate managers were senior managers, but not Directors. In contrast, all of the

Croatian managers were younger and were found to be less experienced than their

expatriate counterparts. This was reflected in their responses during the interviews,

where answers were less detailed and they were more subjective when compared to

the expatriate managers’ answers, which were more objective.

Shim and Paprock (2002) assert that although expatriates absorb new knowledge on

behalf of headquarters and might change their original concepts of the host countries,

they seldom realise that they have learned something from them. This is

contradicted by the findings of this study. The two expatriate managers at Director

level were explicit about their previous experiences in cross-cultural relationships at

both a personal and professional level. They both reported no difficulties or issues

with regard to cross-cultural complexities whilst working in Croatia, and suggested

that this was due to their previous cross-cultural experiences. This confirms Shim

and Paprock’s view (2002) that related to cultural influences, learning is a process

that results in a change in knowledge, attitude and skill.

78

5.2 Adjustment Issues

Scullion and Brewster (2001) confirm that Europe is heterogeneous and that there are

many cultural differences within European countries, which impact on expatriation.

Most of the literature available on cultural differences within European countries

compares the cultures of eastern and western Europe. No studies could be found in

the literature comparing western and Croatian cultures. Empirical literature drawn

upon for this study (Soderberg and Holden, 2002; Hofstede, 1984; Kunovich and

Hodson, 1999) are not explicit about Croatian circumstances, but use Yugoslavia and

other CEE countries for comparison to western cultures.

One expatriate manager stated that Croatians do not perceive themselves as eastern

or central European, although they do not perceive themselves as western either. He

also made the observation that Croatian nationals do not perceive themselves to be

that far removed from western culture. This view is supported by another expatriate

manager who felt that Croatians have a western outlook. This is also supported by

one of the Croatian managers, stating that Croatians are neither eastern nor western.

In contrast, the empirical literature suggests, that Croatia has a more eastern than

western orientation. They display very similar characteristics, norms and values as

CEE countries, as suggested by Hofstede. This can be put down to its historical ties

to Hungary, and as a former socialist state with strong ties to the former USSR and

other CEE countries. In general, according to this study, Croatians have a desire to

embrace western values and are in the process of adjustment to these, but wish to

retain their own identity and culture.

79

The evidence from this study suggests that Croatian managers still have a long

adjustment process ahead of them. Concerns were raised by the expatriate managers

about lack of responsibility and service approach, and a general lack of ownership

demonstrated by Croatian managers within the work place.

It is important to highlight that Croatian managers have concerns about the expatriate

managers’ lack of understanding of the local market and business customs. They

also expressed concerns about the need for recognition of local traditions and

differences in business culture when making decisions. This study has shown that

these concerns are justified. The reason for this lack of understanding could be that

the expatriate managers had insufficient preparation before the start of the

assignment. Upon commencement of the assignment the expatriate managers are

likely to be fully submerged in the daily business activities, leading them to neglect

further research, so as to fully understand and absorb the local culture. This could

affect the quality of decision-making by the expatriates in the Croatian business

environment. The Croatian managers, when responding to the adjustment questions,

felt that the expatriate managers needed to integrate more with the Croatian

managers themselves and that through this integration they could gain better

understanding of the Croatian culture. This view is supported by Black et al. (1991)

who found that HCNs are valuable socializing agents, sources of social support,

assistance, and friendship to fledgling expatriates. No evidence was found in this

study of social integration by both sets of managers. The only integration that

occurred was at the occasional work-related function.

80

Black et al. (1991) believe that previous overseas experience facilitates cross-cultural

adjustment. This study found this to be true. As described earlier, two of the

expatriate managers have held previous international assignments and have adjusted

to the Croatian culture without any difficulties. One manager in particular has

worked across the CEE regions before, and has found no adjustment issues in

Croatia. She felt that this was due to her previous work experiences in CEE and

stated that after having worked in Russia and Poland, competencies in the Croatian

working environment set it apart from some of its CEE counterparts. The other

expatriate manager quoted, not only had previous international experience, but is also

married to a Croatian national. He reported no adjustment difficulties due to his past

experiences and his wife’s influence.

Interestingly, this research also revealed that two of the Croatian managers also had

previous international experience, both having been expatriates themselves. One of

the Croatian managers had previously lived in London and only had minor

adjustment issues. She felt that expatriate managers have a propensity to ‘stick

together’ and that this had also been the case for her, whilst working in London. The

other Croatian manager quoted, had gained expatriate working experience in

Moscow and London. He stated that he had no adjustment issues to working with

expatriate managers in a Croatian working environment at all.

The other four managers, two expatriates and two Croatians, had no previous

experience working in culturally diverse teams. The adjustment issues experienced

by these managers were different from those of the four managers who were exposed

to previous cross-cultural working. The difficulties for these expatriate managers

81

were displayed in frustration with the ‘proud Balkan behaviour’ and the ‘narrow-

minded way of thinking’ of their counterparts. A sense associated with trust issues

emerged from these two expatriate managers. As Sprenger (2004) asserts, within a

relationship that someone experiences as positive, the most important feature is trust.

The difficulties for the two Croatian managers were minor. The difficulties

experienced by these managers were due to the expatriates’ interpretation of local

customs.

This study postulates that relationships between expatriate and Croatian managers

follow the UCT. It hypothesises that both parties will experience the four stages of

honeymoon, culture shock, adjustment and mastery at some stage in their cross-

cultural working relationship with each other.

The hypothesis that both parties will experience the four stages of adjustment has

been found to be true. The managers with greater cross-cultural exposure have made

swift progress through the stages of honeymoon and culture shock, assisting them to

adjust to Croatian team working faster. For these experienced cross-cultural

managers, mastery of the adjustment process is continual. They recognise that cross-

cultural adjustment is an ongoing process. According to Camiah and Hollinshead

(2003), cultural precedents from West and East require continual adaptation and re-

negotiation. It is evident from this study that the experiences of these managers

cause the trough of the curve to be less pronounced. This curve resembles the

pattern of a ‘J’ rather than the pattern of a ‘U’.

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The trajectory for the less experienced managers was more distinct. They

experienced the honeymoon period with greater anticipation and excitement than the

more experienced managers. As they moved from the honeymoon to the culture

shock stage, they were taking longer to adjust to the cross-cultural environment.

Once they have reached adjustment and progressed to the mastery stage, they seem

unaware of the need for continual improvement and ongoing adjustment. The trough

of the curve was found to be more pronounced. This curve resembles the pattern of a

‘U’ rather than the pattern of a ‘J’.

This study has also found that the experienced managers have a better working

relationship with their cross-cultural counterparts, than the less experienced

managers. Shim and Paprock (2002) found that previous experiences in the host or

other country were helpful in reducing expatriates’ difficulty with adjustment.

Drawing on the outcomes of this study, three major conclusions can be made.

Firstly, the managers who have held previous international assignments and have

gathered cross-cultural experience follow the J-curve pattern of adjustment.

Secondly, all managers who have not held previous international assignments and

have not gained previous cross-cultural experience follow the U-curve pattern of

adjustment. Finally, the managers that follow the J-curve pattern of adjustment have

a closer cross-cultural working relationship with their expatriate or Croatian

counterparts in a Croatian working environment.

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5.3 Recommendations

National culture provides the most common explanation for nation-level differences

in individual work behaviours, attitudes and values (Bond and Smith, 1996). This is

confirmed by the findings of this study, where the Croatian managers believe that the

expatriate managers need to adjust more to cross-cultural working in a Croatian

working environment. Hollinshead and Michailova (2001) suggest that while post-

socialist managers need to re-adjust to the new era, westerners seeking to assist them

would be advised to ‘unlearn’ the idealized elements of familiar managerial

principles with critical reference to what is useful in new settings. Expatriate

managers also require better cultural preparation before an assignment in Croatia and

should seek greater social integration in the local culture. This greater social

integration would aid the expatriate managers’ understanding of Croatian culture and

improve their business activities in the local market.

In addition, this study found that Croatian managers should also integrate more with

the expatriate managers to help the integration and adjustment process for both. Toh

and Denisi (2003) suggest that expatriates are more likely to adjust when HCNs

engage in behaviours outside their work role, than when HCNs are uncooperative or

antagonistic. HCNs have an important role to play in the adjustment process, yet

researchers, have overlooked this important organisational stakeholder.

Expatriate managers need to remember that Croatians have different opinions and

perspectives and feel they have to fight for their opinions to be heard, which could

result in feelings of injustice. According to Soulsby and Clark (1996), local

84

managers often resent the attitude of western managers, frequently seen as arrogant

and unwilling to take account of the views of local people. Any potential feelings of

injustice may lead to serious and negative relationship issues (Scholl et al., 1987).

Expatriate and Croatian managers need to understand that if work tasks are not

clearly given or received then a breakdown of trust may occur, leading to a

deterioration in their working relationship. Croatian managers need to learn to seek

clarification if they feel they have not clearly understood what needs to be done to

complete a task. Expatriate managers need to learn to qualify that their instructions

have been fully understood.

Croatian managers need to develop a more pro-active approach to business and to

develop strategic thinking, profit-orientation and general professionalism in the

workplace. The study conducted by Camiah and Hollinshead (2003) about new

Russian managers and western expatriates concluded that Russian managers needed

to develop ‘softer’ management competencies of decision-making, problem solving

and proactive involvement in corporate affairs. They also concluded that the Russian

managers needed to acquire a broader repertoire of managerial attributes. In a

western and eastern cross-cultural context, it can be said that this Croatian study

supports their findings. Radošević (1994) confirms these results, stating that the

quality and flexibility of Croatian employees will remain a longer-term problem.

Croatians are accustomed to a clearly prescribed set of tasks, the labour force has to

learn to become ‘all round players’.

According to Schneider and Barsoux (1997), respecting the behaviour and ideas of

others requires empathy. They also state that focused listening and a non-judgmental

85

approach help managers to understand the other person’s viewpoint. This would

suggest, that Croatian managers need to develop a more empathetic understanding of

the role of the expatriate manager. Expatriate managers may also need to adopt a

more sensitive approach during the knowledge transfer process, thus reducing the

likelihood of any potential resentment by Croatian managers. Both sets of managers

should accept that a more empathetic approach is required during interaction and

team working. Companies sending expatriates to Croatia should consider the

expatriate managers’ interpersonal skills before committing them to the assignment,

which may prevent conflict and misunderstanding arising from lack of consideration

of other viewpoints.

This study has concluded that managers with previous cross-cultural experiences

have a closer working relationship with their counterparts. They display a J-Curve

pattern of adjustment. The managers with less cross-cultural experience display a U-

Curve pattern of adjustment. From this study there is no indication of cross-cultural

training being undertaken by any of the managers interviewed. Further research

could establish whether cross-cultural training has an impact on the patterns of

adjustment in relation to J-and U-Curve Theory. Black and Mendenhall (1990)

suggest that if some anticipatory adjustments are made, this might lead to less initial

euphoria because of more realistic expectations and anticipatory behavioural patterns

and may then result in a more J-curve pattern of adjustment.

Price Waterhouse (1997-98) found that cultural awareness training is the most

common form of pre-departure training for expatriates in Europe, but it continues to

be offered more on a voluntary than a compulsory basis. Cross-cultural management

86

experience can only be achieved through having practiced management in a cross-

cultural environment. This can prove to be a difficult process for both, expatriate

and Croatian managers. Companies should provide cross-cultural training on a

compulsory, rather than a voluntary, basis to assist their managers to better prepare

themselves for cross-cultural team working and to facilitate the adjustment process.

There should be pre-assignment training for both sets of managers to prepare them

for the cultural differences they may face and to introduce them to the culture they

will meet. The training should then continue throughout the assignment, so that

potential areas of tension can be identified and addressed immediately, thus reducing

conflict. McNulty and Tharenou (2004) confirm that training and development

should take place before and during an international assignment.

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6 CONCLUSION

Croatia is pursuing a programme of economic adjustment and reform, transforming

its economy into one based fully on market principles. Already, there has been a

large increase in FDI, with Croatia’s main investment partners being Austria and

Germany. There is every reason to believe that with the accession to the EU, FDI

will continue to rise. The infrastructure has taken a big leap forward, with the

completion of the Zagreb – Split motorway in the summer of 2005. This links the

two largest cities, with more motorways being completed over the coming years, to

link other major cities. The Zagreb – Split motorway project was a joint venture

between Croatia, Turkey, the UK and the USA, successfully combining the skills and

knowledge of both, expatriate and Croatian managers (ECG, online).

There will be an increase in expatriate managers being assigned to Croatia in the

future. According to Scullion (1994), European firms rely heavily on expatriates to

run and control overseas operations. This increase in expatriation will be driven by

change, as Croatia strives to modernise its economy. This means, there will be more

cross-cultural teams with expatriate and Croatian managers forming relationships

with each other in a Croatian working environment.

The aim of this study is to understand the cross-cultural relationships of these

managers. The principle areas of research were: cross-cultural complexities, and

adjustment issues facing both expatriate and Croatian managers. This study

examined expatriate and Croatian ways of communicating, their work practices, and

their skills and knowledge. Holden et al. (1998) and Jankowicz (1994) found that

88

language could be a major barrier to cross-cultural working. The results of this

Croatian study found that the level of English was of a very high standard

throughout, enhancing communication, with no loss of meaning. Therefore it can be

concluded, that language does not form a barrier to cross-cultural working.

Within a relationship that someone experiences as positive, the most important

feature is trust. It has often been said that trust is the basis for management and that

allowing oneself to be managed means trusting someone (Sprenger, 2004).

Expatriate and Croatian managers need to understand that if working practices are

not aligned, and tasks are not clearly given or received then a breakdown of trust

may occur, leading to a deterioration in their working relationship. Therefore, the

expatriate and Croatian managers need to learn to trust each other, if they are to

establish and maintain a close working relationship.

Another area investigated with regard to relationships in a cross-cultural environment

is that of adjustment. It is the responsibility of both, expatriate and Croatian

managers, to work towards building a successful relationship and to help each other

to adjust to each other’s cultures. The evidence from this study suggests that

Croatian managers still have a long adjustment process ahead of them. Camiah and

Hollinshead (2003) suggest that this adjustment can be facilitated through the

acquisition of ‘softer’ management competencies of decision-making, problem

solving and a more proactive approach to business in general. Croatian managers

need to learn to change their behaviour according to each new situation they find

themselves in; they need to come to terms with the new realities, which cross-

cultural team working introduces.

89

The adjustment process of expatriate managers could be accelerated through deeper

immersion in the Croatian culture and greater acceptance of local business customs.

Their management practices need to be aligned with the local culture to achieve

better decision-making within the Croatian business environment, and a closer

working relationship with their Croatian counterparts.

According to this study, prior cross-cultural experience is positively related to

adjustment. This conclusion is supported by Shim and Paprock (2002), who found

that previous experiences in the host or other country were helpful in reducing

expatriates’ difficulty with adjustment. Managers with previous cross-cultural

experiences have been found to adjust to the local culture much easier than managers

without prior cross-cultural experiences. These experienced managers also had

superior relationships with their counterparts in Croatia, when compared to the less

experienced managers.

The findings of this study were applied to UCT and JCT. It can be concluded that

managers with previous cross-cultural experiences and enhanced working

relationships with their counterparts displayed a J-Curve pattern of adjustment. In

contrast, managers with less experience and less developed relationships followed

the U-Curve pattern of adjustment. The most significant factor to note is the depth of

the trough of the curves with regard to culture shock, which is less pronounced in the

J-Curve. If managers are aware of the likelihood of culture shock and its effects,

preparation for the cross-cultural environment may help them in achieving a J-Curve

pattern of adjustment. As Black and Mendenhall (1990) found, some anticipatory

90

adjustments might lead to more realistic expectations and may then result in a more

J-curve pattern of adjustment.

Further research could establish whether cross-cultural training has an impact on the

patterns of adjustment in relation to J-and U-Curve Theory. If cross-cultural training

and other preparations for working in a cross-cultural team lead to managers

displaying a J-Curve pattern of adjustment, then this may lead to managers

developing closer relationships with each other.

There is an abundance of academic literature on the subject of expatriation in

general. There are many East and West cross-cultural studies, but little has been

written about Croatia itself. Empirical literature drawn upon for this study

(Soderberg and Holden, 2002; Hofstede, 1984; Kunovich and Hodson, 1999) are not

explicit about Croatian circumstances, but use Yugoslavia and other CEE countries

for comparison to western cultures. The literature reviewed and the results of this

study suggest that Croatia has a more eastern than western orientation. Croatia, as a

new and independent country, is a fertile ground for further research in many areas,

but in particular, cross-cultural complexities.

In addition, there is very little empirical literature researching HCNs’ cross-cultural

competencies, experiences and adjustment issues with regard to working with

expatriate managers. Michailova (1997) referred to this shortage of research

literature as the so-called ‘donor problem’. From this study it can be assumed that

for every expatriate manager there will be a Croatian manager. More research could

be conducted focusing on Croatian managers with regard to their new working

91

environment, their relationships with the expatriate managers and associated

adjustment issues.

This study is a modest contribution to a better understanding of the cross-cultural

relationships between expatriate and Croatian managers and associated cross-cultural

complexities and adjustment issues. This study has identified the need for further

research into the Croatian working environment and that Croatian managers in

general must be recognised as important stakeholders, with their own cross-cultural

and adjustment issues when working with expatriates.

Organisations, which create cross-cultural teams, should consider assigning at least

one manager with previous cross-cultural experience to the team. This would assist

the adjustment process of both sets of managers. If both the expatriate and Croatian

managers have previous experience in a cross-cultural working environment, this

could accelerate the adjustment process. However, should both sets of managers

lack cross-cultural experience, then the organisation can expect a longer adjustment

period, while these managers come to terms with the complexities of cross-cultural

team working.

There were several general observations with regard to the project as a whole. The

subject of cross-cultural relationships encompasses a wide and complex area. During

the process of the literature review, where little specific research was available, some

difficulties were encountered to keep to the specific area of cross-cultural

complexities and adjustment. Due to the wealth of general literature regarding

expatriation, it was important to remain focused on the specific areas to be

92

investigated. The project was found to be beneficial in establishing that managers

were generally accessible, helpful and interested in the research undertaken, and

were prepared to interrupt their daily business to be interviewed. This was

refreshing, when considering the findings of Michailova and Liuhto (2000), who

found that the majority of eastern European managers are highly suspicious and

resistant to people from the academia.

Potential limitations to this project, such as selection of interviewees, interviewer

dress code, interviewer bias and the interpretation of data findings may have affected

the validity of this study. During this study consideration was given to these factors,

therefore it is felt that the findings are valid, making the conclusions a true and fair

reflection of cross-cultural working in Croatia at the time of the research. Generally,

the implementation of the recommendations made for companies and managers are

achievable, mainly through cross-cultural integration. If the implementation takes

place, then expatriate and Croatian managers can look forward to a successful

working relationship in a Croatian working environment.

93

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- I -

APPENDIX A Argyle’s Skills Model (1967) Feedback Motivation Changes in Attitudes outside world

Motivation Translation Behaviour

- II -

APPENDIX B

Competencies for managing internationally (Schneider and Barsoux, 2003)

Managing differences abroad Managing differences at home

- Interpersonal skills - Understand interdependencies

- Linguistic ability - Respond to different cultures

simultaneously

- Motivation to live and work abroad - Recognise cultural differences at home

- Ability to tolerate and cope with

uncertainty

- Be willing to share power

- Patience and respect - Demonstrate cognitive complexity

- Cultural empathy - Adopt a ‘cultural-general’ approach

- Strong sense of self - Rapidly learn and unlearn

- Sense of humour

- III -

APPENDIX C

Ashridge Management College Survey – Most valued characteristics of

international management

• Strategic awareness

• Adaptability in new situations

• Sensitivity to different cultures

• Ability to work in international teams

• Language skills

• Understanding international marketing

• Relationship skills

• International negotiating skills

• Self-reliance

• High task orientation

• Open, non-judgemental personality

• Understanding of international finance

• Awareness of own culture

- IV -

APPENDIX D

Specific problems and research approaches that must be addressed when

conducting qualitative research in Eastern Europe (Michailova and Liuhto,

2000)

PROBABLE PROBLEM RESEARCH APPROACHES

Identification of the field, getting Do not expect to be able to identify the field on the basis of databases,

the access to it, and entering it registers, archives, etc. - there is a lack of reliable, systematised

information. Make intensive use of informal contacts, such as relatives

and friends.

Act according to the social and behavioural norms of the country and

the particular organisation. Be sensitive towards all signals coming

from the insiders and be flexible.

Accept and respect the fact that access often depends upon insiders

placed on lower levels of the organisational hierarchy.

Secrecy and mistrust in the Be very sensitive, especially at the beginning of the field study. Find

investigated organisation out what norms are valid in the investigated setting. Try to identify

the "chemistry" of the interactive situations and influence it carefully.

Identify a few insiders who might be helpful in shortening the

outsider-insider distance and follow their advice.

Try to interview representatives of the upper levels at the beginning of the

study and let the lower levels know about these interviews when

you ask them to act as respondents.

In case you collect the data in Eastern Europe and conduct the

analysis and publish it in the western context, tell the respondents.

This will relax the respondents and they will be more inclined to giving

you more valuable information.

Respondents' suspicion and fear Focus on taking field notes. In case you want to tape the interviews,

when the researcher uses a tape avoid asking directly for a permission to do so. The risk of being

recorder when conducting interviews refused is extremely high. Approach this issue according to the

situation. Use different techniques depending on whether you know

the respondent or not.

Reduce the effect of "confrontation" caused by the tape recorder by

applying different techniques for the purposes of encouragement,

reinforcement, query, etc.

Lack of interest in receiving feedback Do not assume that the insiders want your feedback. In case you

from the researcher suggest it and they are not really interested, try to present your

analysis and findings to audiences from which you can receive

meaningful and useful feedback.

- V -

APPENDIX E

Transcript of an interview held with a Croatian manager.

How long have you been employed with this organisation?

I have been working here for five years now.

Is this the first organisation you have worked at with Expatriate managers?

No – I spent one and a half years before this working with Austrian managers.

What language do you use to communicate with the expatriate manager?

English.

How often do you interact with the expatriate manager at work?

Daily.

Can you compare and contrast the differences between working on a cross-cultural

team and a purely Croatian team?

I have never really worked with domestic managers. My work here is really

appreciated and I am happy in the international environment. Lots of my friends

who work with Croatian managers are unhappy, because they and their work are not

appreciated.

What difficulties are you experiencing as a Croatian manager adjusting to working

in Croatia with expatriate managers?

- VI -

I don’t like the feelings I get from expat managers. They often say: “You Croats

don’t have the right way of doing things. This is the way things should be done.”

This is patronising to me. Also, my boss tends to take the side of foreigners, not

locals, when it comes to differences in opinion.

What do you think are the reasons for these difficulties?

It’s that expats stick together. I know this from personal experience, when living in

London. There, us Croats used to do that, too.

What do you most enjoy / least enjoy working on a cross-cultural team as a Croatian

manager that you would not experience working in a purely Croatian management

team?

I least enjoy the pressure of long working hours. There in no 9.00 – 5.00 work time.

Sometimes I work until 11.00 in the evening. There are no days off and no calling

in sick. If I’m sick, I am expected to come back to work as soon as possible, even if

I have a note from my doctor. I enjoy that my loyalty and devotion are appreciated

and the promotion I received.

What would you say holds up the process of smooth working in a cross-cultural

team?

I think it’s the expat manager being patronising and knowing things better.

How would you describe your relationship with your boss?

Very good. There are some differences though, and I nearly left the company two

years ago, but I’m still here. I had personal difficulties, but these are now resolved.

- VII -

We used to be personal friends and had the same circle of friends. So we spent the

whole day together at work, it was overload to see each other at work and socially.

To what degree do you socialise with him outside of work now?

No much, mostly only in a working relationship. We are not close friends anymore,

but I can still tell him personal problems.

Did you find it easy to settle into working with an expatriate manager?

Yes.

What skills and knowledge would you say Croatian managers had to learn or

improve in order to become better international managers?

I think Croatian managers must learn that there are differences in opinions when it

comes to business customs and that expat managers can be difficult to work with, as

they think they know everything better and to overcome this.

What skills and knowledge would you say expatriate managers should improve in

order to perform better in Croatia?

To understand the differences in business culture and to allow for differences in

opinion of ways of doing things and accept that they are not always right.

What organisational advantages and disadvantages do you feel there are in working

in a cross-cultural team?

It’s a more interesting and challenging work load. But the cultural differences are

not dealt with effectively to overcome potential conflict.

- VIII -

What have you learned from working with an expatriate manager?

That I have to stand up and fight hard for my opinion to be heard.

What do you think expatriate managers have learned working with you in a cross-

cultural environment?

That Croatian managers don’t necessarily agree with them all the time and that

cultural differences have to be accepted and taken into account when making

decisions.

Would you take a position in future, where you would have to work with expatriate

managers again?

Yes definitely, only with expat managers.

Thank you for taking the time to answer these questions. I hope you will continue to

enjoy your career as much in the future as you do now.

You’re welcome. I think I will do, because the company has just been taken over

and there are growth plans. There should be an additional 10 new employees in the

next year.

- IX -

APPENDIX F

Dissertation Proposal

1 INTRODUCTION

With the likelihood of Croatia joining the European Union (EU) in 2007, an increase

of Foreign Direct Investment (FDI) has occurred. It is also likely that there will be

an increase of FDI in the foreseeable future. Multi National Corporations (MNC’s)

are also responding to the faster changes within the modern global environment.

These changes require MNC’s to change their policies and procedures at an ever-

faster rate.

Organisations investing in or responding to change within other countries normally

place their own personnel within these host countries. The personnel are invariably

middle managers with a lot of knowledge and experience of the organisation, which

has sent them. Some of this personnel, or expatriates, have worked in other countries

before these assignments. Others may find themselves on an assignment for the first

time. One thing, which they will have in common, is that they will have to interact

with local nationals within organisations of the host countries.

For businesses sending managers on these types of assignments, there is both, an

investment and a risk. To send an employee overseas involves cost in terms of

money and time. The majority of expatriates will have families with children; they

- X -

will expect to be compensated for this. They will also need time to move, find

accommodation, schooling and settle into their new environment.

The author has spent time living in both, Germany and the Netherlands, so has

experience being an expatriate. Five years were spent in Germany whilst serving in

the armed forces. During this time, cross-cultural experiences were made whilst

mixing with the local population, experiencing their differing values and traditions.

In the Netherlands, several years were spent setting up a pilot centre for an

international franchise organisation. This involved employing and working with

local managers, becoming familiar with a diverse cultural environment and its

challenges. The secondment to the Netherlands was made easier because of the

previous time spent in Germany, having reflected upon national and cultural

differences and being aware of potential challenges which may present themselves.

Many leisure trips were made to Croatia over many years and the author was married

in Croatia to a Croatian national. Having lived and worked in both, Germany and the

Netherlands, coupled with the trips to Croatia, this has generated a large amount of

interest in the area of cross-cultural diversity at both, a personal and a professional

level.

The purpose of this investigation is to understand the dynamics of foreign and local

manager relationships. Once identified, the findings will be used to identify areas for

potential roles of employment within Croatia, depending on relocation.

- XI -

2 AIM AND OBJECTIVES

The aim is to investigate cross-cultural relationships, intending to highlight cultural

differences. This will include exploring local and expatriate ways of communicating,

work practices, skills and knowledge. In addition the interaction between local and

expatriate managers in the working environment will be explored. This could

include consideration of how effective communication between the managers is and

the approach of each manager to their counterpart. Barriers, which prevent

communication and learning may be identified from this study, such as cultural

diversity, skills and trust. In contrast, there may be synergies which could be

highlighted allowing for relationships to be established on common ground.

Once these factors have been established, the results can be used for training

purposes for both expatriate and local managers, maximising efficiency and cross-

cultural relationships in the long-term. There may be potential for more sharing of

knowledge, as both the local and the expatriate managers will have acquired different

types and amounts of knowledge. By combining them, the company would be able

to harvest the benefits of both.

From an organisational point of view, the research should provide a basis for the

smooth running of daily business, but should also provide an insight into the

different working practices, allowing companies to learn from this exercise and

incorporate these lessons when addressing similar ventures in the future.

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3 PRELIMINARY LITERATURE REVIEW

According to Schooler (1996), culture represents the historically determined set of

implicit and explicit abstract notions and beliefs shared by a group of individuals

who have undergone a common historical experience. History is particularly

important when trying to understand how and for what reason cultural beliefs and

values have evolved. Not one single country will have the history as another, setting

it apart and forming individual traits of the population.

In Huang and Harris’ (1973) view, cultural values, norms, beliefs and assumptions

are reinforced symbolically and passed through socialization and training from

generation to generation. Hofstede (1984) writes, that this passing down results in

‘collective programming of the mind which distinguishes the member of one human

group from another’.

According to Clark (2003), new researchers inspired to do cross-cultural research

must go beyond Hofstede’s framework to adequately represent the dynamic and

complex effect of culture on psychological processes and behaviour. Although

Hofstede’s framework for understanding national differences has been one of the

most influential and widely used frameworks in cross-cultural marketing studies, in

the past then years or so it has also become one of the most widely criticised.

Detractors contend that his dichotomised way of representing cultural differences

leads to unjustifiable generalisations and ignores the subtleties and frequent

contradictions inherent in many national cultures (Clark, 2003). From 1967 until

1973, while working at IBM as a psychologist, Hofstede collected and analysed data

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from over 100,000 individuals from 50 countries and 3 regions (McSweeney,

online). One of the countries examined was Yugoslavia. No evidence was found of

where Hofstede’s study took place, but it is very likely to have been in Yugoslavia’s

capital Belgrade, in the republic of Serbia. It could be assumed that these findings

could be applied to Croatia, a republic of the former Yugoslavia. However,

Hofstede’s findings could be criticised of generalisation, as no consideration has

been given to the wide diversity of the former Yugoslavia’s population. Serbs and

Croatians have a different language and religion. Historically, Croatia was part of

the Austro-Hungarian Empire and Serbia was occupied by the Ottoman Empire. The

Croats are pre-dominantly Catholic (95.5% in 1996, according to a study by

Kunovich and Hodson), whereas the Serbs are pre-dominantly orthodox, both having

different religious holidays and resulting values and cultures. According to

Kunovich and Hodson (1999), the former Yugoslavia is and has been the meeting

place of the Roman Catholic, Eastern Orthodox and Muslim faiths. The convergence

of these three religions has led to much competition and conflict throughout the

region over the last seven centuries (Kunovich and Hodson, 1999).

Within a society, a variety of views will be present. It is the majority of these views

and beliefs that will have emerged from the interaction between people living within

the same geographical area. Being a former socialist state (as part of Yugoslavia),

Croatia is still struggling with its impregnated values while at the same time going

trough a transitional period in order to manifest itself as an independent state, with a

view to joining the EU in 2007. According to Esping-Anderson (1990), more active

government intervention in economic co-ordination and the appropriation and

redistribution of economic wealth represents a more socialist economic system,

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varying between the centralised planning of the communist system and the

redistributive welfare of the Western social democracies. One of the apparent issues

for the Croatia of ‘today’ is the remaining strong tendency towards collectivism,

which encourages conflict avoidance, group decision-making and lack of

individualism. These issues are backed up by Smith et al. (1994), according to

whom some researchers propose that decisions are typically participatory in

collectivistic – high power distance countries.

Bearing the above in mind, any global organisation sending expatriate managers to

Croatia must be aware, or must make itself aware, of the cultural differences, to

which certain behavioural patterns will be attached, when expecting positive co-

operation between the expatriate and the Croatian managers. National culture

provides the most common explanation for nation-level differences in individual

work behaviours, attitudes and values (Bond & Smith, 1996). Hofstede (1993)

believes that the spread of business onto the global stage brings the issue of national

and regional differences to the fore. “There is something in all countries called

‘management’, but its meaning differs to a larger or smaller extent from one country

to another”.

Other relationship issues, which can arise between expatriate and Croatian managers,

can be attributed to education and language. Although these factors belong to the

overall expression of culture, it is nevertheless worth examining them in their own

right to gain a wider understanding of how to improve conflict avoidance, co-

operation, efficiency and the smooth daily business operation.

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Van Deth (1995) established that more accessible educational systems provide more

individuals with the necessary skills to deal with the complicated procedures and

issues in all aspects of life, including work. As such, accessible educational systems

provide more people with the means to deal successfully with complex work. In

turn, more people will have challenging and rewarding jobs and a greater likelihood

that work will be more central. (Van Deth, 1995).

The first expression of national culture is found in language (Rosenfeld and Wilson,

1999). Linguistic ability is also important as it helps to establish contact. However,

having total command of the other language may not be feasible and may be less

important than trying to develop a feel for what matters to others, picking up bits of

‘conversational currency’: local expressions, information, and interests (Can Ethics

be taught? Harvard gives it the old college try, Business Week, April 6, 1992, p.36).

Global expansion is increasingly achieved through alliances and joint ventures, as

well as cross-border mergers and acquisitions (Schneider and Barsoux, 2003).

Varner and Palmer (2002) state that the growth of the international sector means

more and more managers need to have some knowledge of operations that extend

across borders. One way is through working abroad and ‘expatriation’. An

expatriate is an employee who moves from one country to another while remaining

on the employing organisation’s payroll (Varner and Palmer, 2002).

Increasingly, multicultural teams are used to pool expertise across functional,

company, and national boundaries, leading to better decision-making, greater

creativity, more responsiveness to different customers, and easier local

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implementation of strategy. But in order to realise this promise, multicultural teams

have to create the right tension between integration and differentiation, to build

shared expectations while preserving the enriching differences (Schneider and

Barsoux, 2003).

Managerial competence in directing a global company in a multi-national

environment is essential. Michael Argyle’s (1967) skills model (see Appendix A)

can be utilised to identify ‘competence’ or ‘skilled performance’, by addressing the

following factors:

- the motivation to perform

- knowledge and understanding of what is required

- the ability to translate knowledge into specific behaviour and

- the performance itself which provides evidence that the above three factors

are present.

The competences of an expatriate manager (see Appendix B) can ensure successful

training and re-direction of the thinking process of Croatian managers, if required, in

order to understand the mission and the objectives of the relevant organisation. It is

often the case that expatriate managers are in the host country for only a short period

of time, approximately 2 years. Therefore, the aim is to enable the expatriate

managers to hand over the management position to the Croatian manager

successfully, including delegation of certain tasks by themselves and in turn the

delegation of routine tasks by the Croatian manager to their subordinates. Successful

delegation of authority and responsibility depends on interpersonal communication,

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the foundation of a dynamic functioning of an organisation. (Zugaj & Bojanic-

Glavica, 1996).

Hiltrop and Janssens (1990) assert that the demand for expatriates is increasing as a

result of a rapid growth of multinational companies and international joint ventures,

and as expatriates meet the needs of a parent company to implement corporate

strategy or supply a skill or knowledge which is not available locally. Phatak (1992)

lists nine skills that companies can look for when selecting their international

manager:

(1) technical ability

(2) managerial skills

(3) cultural empathy

(4) adaptability and flexibility

(5) diplomatic skills

(6) language aptitude

(7) personal motives

(8) emotional stability and maturity

(9) adaptability of family.

Studies of managerial failures as a rule show that the main cause or one of the main

causes for this is insufficient or inadequate delegation (Weihrich and Koontz, 1994).

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The theoretical and conceptual frameworks and models, as described above, will

form the basis for analysing the cross-cultural relationships between expatriate and

Croatian mangers in Croatia.

4 RESEARCH METHODOLOGY

It is intended to collect both, qualitative and quantitative data through questionnaires

being sent either by post and/or email and through semi-structured telephone calls

and/or face-to-face interviews. Assistance in the data collection will be provided by

the author’s wife, a Croatian national, through translation and questioning of

interviewees in their native language. This will also aid in the interpretation of local

nuances in order to fine tune replies and identify their true meaning, adding validity

to the research.

It is hoped to find one large organisation in order to carry out a case study. This will

provide a better value in terms of validity of data and will be easier to manage.

Should a suitable organisation not be found, then the information gathered at this

stage can be utilised by applying it to various expatriate managers in various

organisations in Croatia.

To assist in the location of organisations, the following institutes can be approached:

- University of Zagreb

- University of Split

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- British Embassy

- Chamber of Commerce

- National Business Guides and

- Internet searches

The quantitative data, in the form of questionnaires, will be collected from a random

sample of managers. The questionnaire will address three main areas (Camiah and

Hollinshead, 2003):

1. Level of managers preparation for cross-cultural working

2. Statement of primary motivation for entering into cross-cultural working

3. Major issued identified

The questionnaires will be linked to semi-structured interviews, so as to provide a

multi-method approach (Saunders et al., 2003), thus strengthening the research

results validity.

The qualitative data, in the form of semi-structured telephone calls and/or face-to-

face interviews, will be conducted with both, expatriate and Croatian managers, from

organisations that have replied to the questionnaire. The interview questions (see

Appendix C) to be used will be from Table 3 of ‘Assessing the potential for effective

cross-cultural working between “new” Russian managers and western expatriates’

(Camiah and Hollinshead, 2003). Data will be recorded by note taking and

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interpreted by qualifying it through additional questioning as required and by the use

of the author’s wife’s translations.

These interviews will provide a framework for:

- adjustment issues

- barriers to cross-cultural working and

- skills, knowledge and learning

Pitfalls for both research methods, quantitative and qualitative, could relate to

reliability of the information given by the managers, and the rate of response

achieved from both methods. According to Robson (2002), there may be four threats

to reliability:

1 Subject or participant error – a ‘neutral’ time should be chosen for

questioning.

2 Subject or participant bias - interviewees may be saying what they think

their bosses want them to say.

3 Observer error – interviews need to be highly structured

4 Observer bias – interpretation of results may depend on the interviewer

Validity is concerned with whether findings are really about what they appear to be

about (Saunders et al., 2003). The validity of the selected questions for both

methods, however, is provided by using a proven model, as established by Camiah

and Hollinshead (2003).

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Benefits of the interviews will be to probe attitudes of Croatian managers, relating to

cross-cultural working and their experiences made.

In all cases, participants will be adequately informed about the purpose of the

interviews and/or questionnaires, thus removing any potential anxiety and

encouraging the interviewees to reflect their honest opinions. It is also the intention

to grant access to results, if requested. Anonymity and confidentiality will also be

ensured.

It is anticipated that conflict areas will be identified in the cross-cultural working

relationship between the expatriate and the Croatian managers and that these areas

may arise from both, differences in organisational training and national cultures and

values. It is hoped to identify potential areas, which can be addressed in order to

achieve greater cross-cultural co-operation, resulting in increased company

efficiency.

Limitations, such as validity, have been addressed throughout. Reliability will be

ensured through the qualitative, as well as the quantitative data, with ‘real life’

experiences being recorded and further analysed and summarised by the author.

Tools for analysis and summary data will be in the form of Microsoft Excel and/or

Word to tabulate relevant results and for graphs.