Introduction
The rapidly advancing technology and globalization have resulted in a shift in international business dynamics. Today, organisations increasingly focus on technological innovation, efficient communication technology, and global operations. According to Nambisan, Zahra, and Luo (2019), the changing global business environment has shifted to international entrepreneurship, where entrepreneurs are beginning to draw upon entrepreneurship and international business theories. Entrepreneurs have become more aware of technology and knowledge transfer in tapping and exploring new opportunities offered by international business environments. Technology is no longer utilised as only a tool for optimizing business processes but rather as an essential resource for a competitive edge in the current fierce global markets (Nambisan et al., 2019).
Most emerging entrepreneurs are now venturing into global markets with immense success as they can use technology to meet the needs of society efficiently. Indeed, Oparaocha (2015) in explaining the importance of global entrepreneurship believes that it is advantageous since the current group of entrepreneurs utilises the technical know-how and experience to capitalize on global trends to beat the competition. In other words, international entrepreneurship offers a critical path for a new wave of business leaders and entrepreneurs to develop superior strategies for overcoming global business issues. This paper aims to critically appraise cultural diversity as an issue affecting Jarrad Morri’s Fleet-e and Plug charging business and their internationalisation aspirations. The researcher will use qualitative analysis to complete the assignment. Secondary data will be applied where information will be obtained from literature review and desk research related to international entrepreneurship.
Critical discussion of international entrepreneurship
Entrepreneurship has become a larger concept than ever before. With the rise of technology and globalisation, international entrepreneurship is a predominant word in about all business conversations (Baier-Fuentes et al., 2019). Though it may sound new, IE is not a new term in the world of business. The concept was first coined by Morrow in his short business article in 1988, highlighting the prior technological advances and cultural awareness in tapping opportunities offered by foreign markets (Tabares et al., 2021). Unlike in the Uppsala model, where multinationals used targeted-regular slow and evolutionary processes to go international, IE emerged as a concept of utilising technology and knowledge transfer to capitalize and expand in foreign markets (Alex, Rialp, and Knight, 2014). International entrepreneurship defines the multifaceted and dynamic phenomenon of business opportunity creation and exploitation across national borders and revolves around expanding ventures into global markets (Schwens et al., 2018).
Being a rapidly evolving field, IE has attracted many scholars interested in knowing why the concept is ever-changing the international business landscape. According to Oparaocha (2015), international entrepreneurship is a more advantageous approach to global business and is highly embraced by the new crop of entrepreneurs because of its suitability in exploring untapped opportunities across borders.
Zahra (2021) explains that IE allows individuals to take advantage of expertise and corporate know-how, which is easily accessible in other countries, to grow and expand internationally. Because different countries have different labour markets, regulatory frameworks, technological advancements, and many other potential resources, the variations make it easy for entrepreneurs to become more innovative in creating products and services that meet the diverse needs of customers in different markets (Alex et al., 2014).
International entrepreneurship has also been critically examined by other researchers as the new way through which essential aspects of sustainability can be achieved. According to a study by Reuber et al. (2018), IE is a critical factor for global economic sustainability, which is three-fold in dimension, touching on social sustainability, environmental sustainability, and economic development. IE, according to a good number of scholars, has been hugely facilitated by the crop of SMEs, which are not only critical contributors to economic outputs but also key employers in modern economies (Schwens et al., 2018). In further explaining the role of SMEs, Pidduck et al. (2022) agreed that these small businesses play a critical role in maintaining sustainable development through reaping the benefits of economic globalisation and market integrations.
In as much as innovators and investors are turning to international entrepreneurship as the best alternative for establishment and expansion into global markets, the rate of success in the international markets remains slim. Schwens et al. (2018) lament that the international markets remain highly volatile and many new start-ups fail in international business ventures because of the complexities involved. Unlike the traditional internationalisation approaches used by multinationals to spontaneously grow beyond borders, IE encourages entrepreneurs to aggressively pursue international markets without paying attention to the critical factors that matter in the international business environment (Buccieri et al., 2020). The international business environment is characterized byby a series of issues,, including a strong wave of competition, economic uncertainty, environmental concerns, cultural diversity, and restrictive regulatory frameworks, that may choke the new start-ups to death before they see their first birthdays.
Critical appraisal of the chosen issue that is affecting the global environment
Cultural differences are one of the significant factors in doing business beyond the national borders. Defined as appreciating different groups of people in society with their various needs, interests, talents, religious beliefs, norms, and many others, cultural diversity has become an integral part of the global business environment (Gomez and Bernet, 2019). Cultural diversity is not only a significant force in globalisation but also a pivotal contributor to opening free economies for global investment opportunities. Bogilović, Černe, and Škerlavaj’s (2017) study explains that emerging new ventures and businesses are capitalizing on the potentiality of cultural diversity to grow and expand. According to Korzilius et al. (2017), cultural diversity promotes entrepreneurial growth and investment as many countries open up their borders by being more culturally friendly. Globalisation has indeed resulted in the blending and integration of cultures, thereby broadening the available options to the customers, a theory that has been supported by many scholars. While some social perspective scholars believe that cross-cultural international business is detrimental to the continuity of traditional cultures, Beugelsdijk et al. (2018) hold a directly opposite view. According to him, interaction among individuals and building relationships across cultures results in new and innovative ideas. The authors make a valid case for cultural diversity in the face of the changing world dynamics. He explains that cultural exchange across borders gives people an adaptable, comprehensive, and broad range of options (Beugelsdijk et al., 2018). His opinion concurs with those of Sadeghi et al. (2019), who believe that international entrepreneurship taps and enriches existing cultures with the potential of giving people alternatives.
Cultural diversity impacts the global business environment from various aspects based on the explanations discussed by different scholars. According to Brannen et al. (2017), communication is one aspect of culture that may create barriers to entrepreneurs interested in expanding their operations overseas. Whether it is a small or a large start-up, effective communication would determine if the business becomes successful or not. Even with a better grasp of the language, one cannot be assured of success in international business. When thinking about going global, an entrepreneur must bridge cultural variation through language to make progress (Razavi et al., 2022). Communication differs in different cultures, and a business must speak the language its intended market speaks. An example can be cited of a proposal in the U.S. business culture where it means a decision has yet to be reached, while in the UK, this prompts some action. A lack of understanding of the communication style and cultural environment in which a business operates can significantly result in business failure (Wei and Duan, 2023).
Another cultural diversity aspect that is commonly explored by some scholars when it comes to international entrepreneurship is cultural norms. According to Anggadwita et al. (2017), cultural norms or values significantly dictate people’s attitudes toward management, hierarchical structures, and products. In certain cultures, junior and middle management employees may not be allowed to give their opinions or ideas throughout meetings. However, in some cultures embrace an interactive and open communication system where everyone in the business is freely allowed to voice their ideas and concerns. Korzilius et al. (2017) explain that expanding into a society whose values align with social equality and strict adherence to values can prove futile for entrepreneurs from structurally hierarchical countries.
Hampden-Turner et al. (2020) further explains that even with the process of globalisation where business behaviours, norms, ideas, and values have been catalysed and diffused, it is still essential for international entrepreneurs to consider cultural variations in various markets. The success of any international business inherently depends on the ability of the entrepreneur to appreciate cultural diversity in unlocking the business opportunities that exist in the global markets.
Relevance/implications of cultural diversity on Jarrad Morris’ Fleet-e business future in internationalization efforts
With the global data indicating that the sales of electric vehicles are forecasted to go up to 51.6 million by the year 2035, Fleet-e business has the potential to experience significant growth and expansion into different world markets (Santos and Smith, 2023). However, in as much as the future of Jarrad Morris’ business looks bright, it is likely to be impacted by international business environmental factors, which may cripple its efforts. Cultural diversity is one of these critical globalfactors in the business environment that have substantial relevance and implications for the future internationalisation potential of Fleet-e.
The first aspect under which cultural diversity will likely impact Fleet-e’s future business is influencing market demand. Bogilović et al. (2017) explain that with globalisation and diffusion of cultures, most world consumers now demand environmentally friendly products. With Fleet-e’s dedication and commitment to extend its offer beyond just providing vehicles to helping customers navigate the difficulties associated with EV adoption and ensuring sustainability of the environment, the company’s products are likely to attract a vast number of customers globally, irrespective of their different cultural backgrounds. In other words, the ongoing cultural integration will significantly broaden the company’s consumer markets in the near future.
However, culture can also deter Fleet-e from venturing into certain countries. According to Korzilius et al. (2017), cultural differences can be a significant barrier to international business ventures, for instance, in the African continent, people value individualism over integration,, they are reluctant to embrace new cultures that could shift their attitudes towards consuming certain products such as EVs. Investing into African markets with the Eurocentric view of business could prove futile in accepting electric vehicles in African content (Bogilović et al., 2017).
Cultural diversity is also likely to affect Fleet-e’s operations in terms of human resource management. As noted by Anggadwita et al. (2017), businesses that are operating overseas are exposed to a multi-culturally diverse workforce which can be an important resource when harnessed well and at the same time can be a huge challenge in the company’s expansion efforts. Sadeghi et al. (2019) explained that people from different cultures can work together and create innovative products beyond the expectations of the consumers. So, by incorporating a cross-cultural workforce, Fleet-e is likely to capitalize on this social capital not only to expand its operations but also to gain a competitive edge in the already fierce international markets. However, the culturally diverse workforce can also impact Fleet-e negatively. According to Brannen et al. (2017), people from diverse cultures have different ideas about leadership styles, decision-making processes, management approaches, and communication styles. Some cultures emphasize time management and others operate on “island time” where being punctual is not the norm. Without understanding and adjusting appropriately to these cultural differences, Fleet-e is most likely to run into workplace dysfunction which is very difficult to resolve once it takes root.
Conclusion
There is no doubt that rapidly advancing technology and globalisation have shifted entrepreneurship to international entrepreneurship. Today, many prominent and new SMEs have emerged with their focus being global markets. They begin by starting small in the host country and within no time they extend their operations into international markets. Jarrad Morris’ Fleet-e Company is an example of such an SME that saw the potentiality of international markets in the electric vehicle industry and is aggressively expanding overseas. In as much as Jarrad Morris’ venture seems to have huge future potential, venturing into international entrepreneurship is not a smooth ride for the entrepreneurs. Operating in the global markets is faced with a series of issues ranging from social, economic, and political to finding resources. Cultural difference is one of the factors that immensely affect businesses in their internationalisation attempts. As has been discussed in the paper, the relevance of a people’s culture becomes more pronounced when a company endeavours to spread its products and activities past its domestic boundaries. Culture specifically impacts on demand for a company’s products services, and management systems and may become a huge barrier to the expansion of business as seen in the case of Fleet-e. For a company to operate successfully across cultures it ought to adapt to the existing differences in order to tap the potentiality that emerges with it.
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