Identifying Cultural Difference in R&D Project for Performance Improvement: A Field Study (Report‪)‬

1. Introduction With the rapid development of a globalized economy, international projects characterized by cross-culture have been unprecedentedly growing (Asgary and Walle 2002; Oertig and Buergi 2006; Zwikael et al. 2005). The essential feature of international project management is the diversity of culture and therefore, it is important to exercise cross-cultural management. Cultural difference is the major factor affecting success or failure of projects (Low and Shi 2001). While some cultures (and individuals) see the difference in a strictly negative light, others see it as a necessary growth procedure (for both individuals and business alike). No matter whether the difference is viewed as desirable or not, the fact is that cultural difference will exist (Darling and Fogliasso 1999; Tsui et al. 2007). When such a cultural difference is recognized and managed in a proper manner, it can lead to innovative business practices, faster and better organizational learning, and sustainable sources of competitive advantages (Bhasin 2007; Hutchings 2003; Magala 2007). For building up awareness and understanding of cultural difference in order to develop effective international management teams, the need to recognize and manage other cultures is an important component in project management in this era of globalization (Hong et al. 2007).