This thesis explores the intricate relationship between digital technologies and cultural differences in European B2B contexts. The primary goal is to understand how the widespread adoption of digital technologies can influence regional cultural disparities and enhance business operations across Europe. The study addresses a significant research gap by examining how these technologies can help mitigate cultural barriers that challenge international business relationships. The first objective is to investigate specific cultural differences that pose challenges to international business operations. Utilizing data from Hofstede Insights, the European Social Survey, and Edward T. Hall’s cultural dimensions, this research identifies primary obstacles such as uncertainty avoidance, power distance, individualism vs. collectivism, high vs. lowcontext communication styles, and social trust. Findings indicate clear regional tendencies, though segmentation based purely on geography does not fully capture cultural similarities. More culturally cohesive regions could be developed by considering both cultural and geographical factors. The second objective assesses the level of digital technology adoption in various European regions using data from Eurostat and academic sources. This analysis reveals significant regional disparities in digital readiness and integration. Northern Europe shows high digital readiness, with regions like the Baltics, France, Hungary, and the Czech Republic exhibiting unique levels of digital advancement. Southern and Eastern Europe lag behind in digital adoption, highlighting a need for strategic enhancements to bridge the digital divide. The third objective is to create a criteria system to measure the readiness of companies, countries, and regions to overcome cultural barriers using digital technologies and to develop the Digital Readiness Score (DRS) framework. This system pairs identified cultural challenges with appropriate digital solutions, focusing on data analytics, AI-enhanced systems, remote meeting technologies, cloud computing, digital skillsets, and digital strategies. The DRS framework provides a standardized measure of digital maturity and cultural adaptability, calculated by averaging scores from the six identified aspects. This comprehensive understanding of digital readiness across different regions indicates Northern Europe as the most digitally prepared, followed by Western Europe, with Eastern and Southern Europe trailing behind. Cultural dimensions such as uncertainty avoidance, power distance, and social trust vary significantly across European regions, impacting business relationships. Northern Europe shows lower uncertainty avoidance and power distance, fostering more egalitarian and flexible business practices. Southern and Eastern Europe exhibit higher scores in these dimensions, indicating a preference for hierarchical structures and stability.
Date of Award | 2024 |
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Original language | English |
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Supervisor | Monika Pleschinger (Supervisor) |
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Use of digital technologies as a tool to overcome cultural barriers of business interactions in European regions
Bánhidi, M. G. (Author). 2024
Student thesis: Bachelor's Thesis