E-Management (May 2020)

The cross-cultural communications impact on increasing business profitability in digital technologies use

  • M. A. Gil Martinez,
  • Yu. V. Vorontsova

DOI
https://doi.org/10.26425/2658-3445-2020-1-27-35
Journal volume & issue
Vol. 3, no. 1
pp. 27 – 35

Abstract

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The main objective in this paper is to analyze the impact of cross-cultural communication on increasing business profitability. In order to do that, the research is based on three main concepts: cross-cultural skills, which are considered in our study one the most strategical tools for companies’ success, concerning both the profitability and the image of any company. Cross-cultural communication, as stated by the anthropologist Edward Hall in his book The Hidden Dimension. Hall is most associated with proxemics, the study of the human use of space within the context of culture. Bearing in mind Hall’s considerations, the paper emphasized the need and importance of cross-cultural education for employees, as long as the goal of the companies is to position themselves internationally. Intercultural communication. Hall’s ideas have also had a significant impact in communication theory, especially intercultural communication, where it inspired research on spatial perception that continues to this day. In the digital economy, there are different indicators for measuring the level of cross-cultural skills within a company: a financial indicator such as return on sales has an important role. Sales play a fundamental role in the activities of any company and they are causally related to the cross-cultural skills of employees and entrepreneurs concerning company’s management. Business management style as well as the type of cross-cultural communication existing in the company will determine the international position of any company. Communication and cross-cultural skills contribute to a positive image of the company, since these are skills pointing out at companies with multilingual staff, with personal and professional experience living and working in different countries, experts on using innovative technologies, characteristics which will strongly impact on final profitability results. The paper concludes focusing on the importance for all the international companies to invest in the concept of intercultural communication and cross-cultural skills as a way of behaving in business, since these skills will reward them with increasing ratios of business profitability in international markets.

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