How Cultural and Communication Barriers Affect Business!

Cultural and Communication Barriers

This Cultural and Communication Barriers study was part of a Supply Chain MPS focus on Lake Erie College in Painesville, OH.  LEC is building a supply chain segment of its curriculum, and the first class is “Special Topics in Supply Chain’ led by adjunct professor Ron Emery.

The class is an exploratory class looking at all the various problems in Supply chains today and why they pose such a problem to the economy.  

I, Daniel Goa Utgaard, am researching those issues with the hope that as they become leaders within their various disciplines, they will develop the tools to address issues much more quickly than through traditional methods.

Intercultural communication and cultural barriers can significantly affect how international business is conducted globally. Those in leadership positions must understand the potential issues arising from cultural and communication differences within the industry. This essay will examine how cultural and communication barriers affect international business and the strategies to bridge the gaps between cultures and countries.

Cultural and communication barriers can significantly hinder the success of a business. To develop a successful business, companies must understand the cultural and communication differences between their customers, employees, communities, and competitors.

These differences can create a range of challenges that, if not addressed, can affect the performance of the business. For example, cultural differences can lead to misunderstandings between employees and customers, resulting in a lack of trust. Furthermore, communication issues can cause customers and employees to feel alienated, decreasing customer satisfaction and loyalty.

Moreover, language barriers can make it difficult for employees to understand customer needs and preferences, leading to decreased sales.

Additionally, cultural and communication barriers can lead to a lack of understanding of the company’s mission and values, making it challenging to identify a target market and develop effective marketing strategies (Matschke, 2015). To ensure success, businesses must understand the cultural and communication differences between their customers, employees, and competitors to develop strategies to overcome these barriers effectively.[1]  

As a 22-year-old Norwegian guy in the US, I have experienced firsthand the challenges that arise from cultural and communication barriers. My experiences playing soccer and in the classroom with students and professors exemplify how these barriers can impact daily life.

Intercultural communication and cultural barriers can also significantly affect international business, making it crucial for leaders to understand these potential issues. It is essential to have an understanding from both sides and cooperate to make a better understanding for both parties.

Business communication is an integral part of any organization and its operations. However, cultural and language barriers can negatively impact communication within business contexts. Harzing and Feely (2008) noted that cross-cultural management is critical in ensuring effective communication between members of different cultures.[2] 

The authors suggest that cultural awareness and language proficiency are essential for successful business communication. Companies must consider each culture’s unique characteristics and tailor their communication strategies accordingly. Language barriers can be particularly problematic, leading to misunderstandings and misinterpretations of messages. This can hurt business relationships and the overall success of the organization.

Therefore, cultural and language barriers should be addressed to facilitate effective communication in business contexts. Companies should invest in training and development programs to help employees understand cultural values and norms and improve their language proficiency.

The prevalence of digital communication in business can also create communication barriers due to the need for face-to-face interaction. Digital communication, such as email, instant messaging, and video conferencing, has become increasingly important in today’s business environment, particularly during the pandemic.

However, relying solely on digital communication can make it challenging to communicate effectively, as it can be hard to read body language and facial expressions. This can lead to misunderstandings, a lack of trust between employees, and personal connection, which can affect team morale and productivity.

Furthermore, using digital communication can also lead to over-communication, which can overwhelm employees and decrease efficiency. Additionally, digital communication can lead to a lack of accountability, making it difficult for managers to monitor the progress of projects and for employees to take ownership of their work.

To overcome these barriers, it is essential for businesses to strike a balance between digital and face-to-face communication and to provide training and resources to help employees understand and communicate effectively in both environments.

Cultural and language barriers are the most significant factors impeding international business success. As H Tenzer, M Pudelko, and AW Harzing note in their article in the Journal of International Business Studies, the lack of cultural understanding can lead to communication breakdowns, resulting in several problems.

For example, cultural differences can lead to misunderstandings between host countries and foreign companies and make it challenging to develop effective working relationships.[3] Language barriers can also be a significant issue, as a lack of understanding can lead to miscommunication and make it challenging to comprehend the nuances of a foreign language.

In addition, language barriers can prevent foreign companies from communicating effectively with local partners and customers, leading to a decrease in profitability. These issues can be mitigated through careful research, planning, and implementing strategies to bridge cultural and language gaps.

However, it is essential to recognize that cultural and language barriers can significantly impact the success of the international business and should be considered when planning any international venture.

Cultural and communication barriers can have a significant impact on business. Communication between partners, colleagues, and customers is essential for a successful business, and it is vital to be aware of their communication and cultural differences.

If a company wants to be successful, it must actively manage and overcome these differences to ensure a smooth understanding. It is also essential to remember that respect for different cultural traditions should be acknowledged, as this creates an environment of trust and understanding.

To sum up, business owners and professionals should be aware of cultural and communication differences and be prepared to adjust their communication strategies to be successful.

Work Cited

H Tenzer., M Pudelko., AW Harzing.”The impact of language barriers on trust formation in multinational teams. https://link.springer.com/article/10.1057/jibs.2013.64

Matschke, P. (2015). Cultural and communication barriers in international business. International Business Review, 24(5), 841-852.


[1] Matschke, P. (2015). Cultural and communication barriers in international business. International Business Review, 24(5), 841-852.

[2] AW Harzing.”The language barrier and its implications for HQ‐subsidiary relationships. https://www.emerald.com/insight/content/doi/10.1108/13527600810848827/full/html?fullSc=1&mbSc=1&fullSc=1

[3] H Tenzer., M Pudelko., AW Harzing.”The impact of language barriers on trust formation in multinational teams. https://link.springer.com/article/10.1057/jibs.2013.64

Article and permission to publish here provided by Daniel Utgaard. Originally publish by Supply Chain Game Changer on April 2, 2023.