Conflict: doing business in a heterogeneous and volatile continent, with a focus on China, Turkey and India

Western business people confront enormous challenges when seeking to penetrate such important and potentially profitable but complex markets as China, Turkey and India. In this paper we identify three levels of potential and actual conflict. The common theme here is that of conflict in terms of perception, expectations and assumptions – and the practical realities on the ground. Sometimes the challenges presented by the realities are not as great as those feared – but for many Western business people venturing overseas, perception is reality. Returning to the three levels: firstly, the Western business person has few reference points especially in terms of institutions and typical business practices in exploring these markets, compared with his or her own experience at home; the ways of doing business may be quite different. Secondly, the business cultures and behaviours in China, Turkey and India are diverse and often incomprehensible to many Westerners; attitudes and practices are just not the same. Thirdly, these countries and their neighbours are experiencing degrees of political, economic and social volatility which provide another dimension of challenge to the Western business person; many of the regions within Eurasia are in open armed combat with each other. In this paper, we explore the background to developing business in these emerging markets, drawing on research for the author’s recent book BRICS and Beyond (Wiley, 2012), which focussed on opportunities, challenges and practice in new economies. Based on the practical experience of domestic and international businesses, this study highlights the conflicts experienced on these three levels. The author also refers to her previous study Managing in China – an executive survival guide (Butterworth Heinemann, 1997). Furthermore, she bases her comments on a decade of teaching MBA students across the globe: leading and facilitating courses in organisational behaviour such as challenges in leading teams, understanding business ethics, managing change, implementing quality practices, analysing organisational and national cultures and the challenges of operating in culturally diverse environments. Common to many of these courses are the building of skills in diagnosing conflict styles and managing conflict resolution, explained in two of her MSM textbooks, Leadership, Change and Responsibility (2008) and Managing Cultural Diversity (2009). We also look at sources and indices such as those produced by the World Bank, the Economist, the Doing Business In… survey, the Corruption Perception Index of Transparency International, the cultural constructs of authors such as Geert Hofstede (2001) and Fons Trompenaars (1997), and the literature on conflict analysis, especially the valuable Mode of Conflict Instrument produced by Thomas and Kilmann (1974) and still widely used. She applies these to her personal knowledge of living and working in each of these three countries.