Research: How Cultural Differences Can Impact Global Teams

Diversity can be both a benefit and a challenge to virtual teams, especially those which are global. The authors unpack their recent research on how diversity works in remote teams, concluding that benefits and drawbacks can be explained by how teams manage the two facets of diversity: personal and contextual. They find that contextual diversity is key to aiding creativity, decision-making, and problem-solving, while personal diversity does not. In their study, teams with higher contextual diversity produced higher-quality consulting reports, and their solutions were more creative and innovative. When it comes to the quality of work, teams that were higher on contextual diversity performed better. Therefore, the potential challenges caused by personal diversity should be anticipated and managed, but the benefits of contextual diversity are likely to outweigh such challenges.

A recent survey of employees from 90 countries found that 89 percent of white-collar workers “at least occasionally” complete projects in global virtual teams (GVTs), where team members are dispersed around the planet and rely on online tools for communication. This is not surprising. In a globalized — not to mention socially distanced — world, online collaboration is indispensable for bringing people together.

Vasyl Taras is an associate professor and the Director of the Master’s or Science in International Business program at the University of North Carolina, Greensboro, USA. He is an associate editor of the Journal of International Management and the International Journal of Cross-Cultural Management, and a founder of the X-Culture, an international business competition.

Dan Baack is an expert in international marketing. Dan’s work focuses on how the processing of information or cultural models influences international business. He recently published the 2nd edition of his textbook, International Marketing, with Sage Publications. Beyond academic success, he is an active consultant and expert witness. He has testified at the state and federal level regarding marketing ethics.

Dan Caprar is an Associate Professor at the University of Sydney Business School. His research, teaching, and consulting are focused on culture, identity, and leadership. Before completing his MBA and PhD as a Fulbright Scholar at the University of Iowa (USA), Dan worked in a range of consulting and managerial roles in business, NGOs, and government organizations in Romania, the UK, and the US.

Alfredo Jiménez is Associate Professor at KEDGE Business School (France). His research interests include internationalization, political risk, corruption, culture, and global virtual teams. He is a senior editor at the European Journal of International Management.

Fabian Froese is Chair Professor of Human Resource Management and Asian Business at the University of Göttingen, Germany, and Editor-in-Chief of Asian Business & Management. He obtained a doctorate in International Management from the University of St. Gallen, Switzerland, and another doctorate in Sociology from Waseda University, Japan. His research interests lie in international human resource management and cross-cultural management.