Interaction despite of diversity: is it possible?

Abstract

Purpose – Italy is traditionally one of Egypt’s main trading partners, ranking first both as import and export partner. However, Italian firms face several cultural problems in Egypt. The purpose of this paper is to investigate the impact of cross-cultural differences faced by Italian firms’ operating in Egypt. The investigation of cross-cultural differences is facilitated by the examination of interaction between Italian and Egyptian culture using Hofstede and GLOBE’s cultural attributes and dimensions. Design/methodology/approach – The qualitative analysis has been conducted through face to face interviews of individuals working for Italian firms operating in Egypt. These interviews were structured to specifically identify the impact of cultural differences on the interaction between Italian and Egyptian firms. Findings – The results show that Italy is one of the most important commercial partners of Egypt. However, cultural diversity results in Italian small and medium enterprises facing risks when operating in Egypt. Cultural distance is a problem for Italian firms investing in Egypt. Thus, interaction between Italian and Egyptian firms requires a common understanding of cultural diversity. Italian firms must develop an understanding of Egyptian culture if they are to avoid cultural clash. Egyptian policy-makers must adopt policies that open national culture to international interactions. Research limitations/implications – The paper is based on a sub-set of the cultural attributes identified in Hofstede and GLOBE’s study. The results presented in this paper may be complimented through a future quantitative analysis, evaluating the relationship between religious values and other cultural dimensions. Originality/value – This paper provides an insight into the interaction between Italian and Egyptian culture. It contributes to the extant literature by filling a gap in the existing literature on cross-cultural diversity and interaction between Europe and Middle East.

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