What is it about?
Egypt boasts one of the biggest economies in the Arab world. The country's geographic position as a gateway between North Africa and the Middle East makes it well placed to build upon current strengths. Egypt is also a major trading partner with Mediterranean countries and, as such, the EU wants to ensure opportunities for broadening trade agreements are not missed. Italo-Egyptian business relations are particularly strong, with Italy ranking as Egypt's foremost import and export partner. Nevertheless, obstacles to a more productive partnership do exist. Cross-cultural differences hinder smoother interactions between local and Italian firms based in Egypt. Aware of the prominence of Italy's trade history with Egypt and the lack of existing literature on cultural differences between the nations, the research team conducted interviews with directors at Italian firms operating in the country.
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Why is it important?
Unsurprisingly, religion emerged as the biggest driver of socio-cultural values and practices in Egypt. About 90 per cent of the population are Sunni Muslims. Islam influences everything from personal choices, to politics, economics, law and culture. Reciprocating cultural respect is key to improving interactions. Italian firms should be aware that Egyptian companies are generally risk averse, driven by collective interests and highly restrictive of women's rights. Meanwhile, Egyptian policy makers can make the country more attractive to European trade partners by adopting strategies that encourage more openness and a greater degree of proactive planning for higher future growth.
Perspectives
Business relations between firms with different cultural heritage can be complicated. The research team set out to qualify how Italo-Egyptian relations fair within this context, as Europe is keen to build trade ties with Egypt, but little information is available on how such dealings may be affected by diversity. The investigation revealed that this diversity does indeed pose a risk to small and medium-sized Italian firms. To improve future relations, Italian businesses need to ensure they understand and are sensitive to cultural norms to ensure they don't alienate themselves. Equally, there is a need for greater openness and assertiveness among Egyptian companies.
Rosa Caiazza
Parthenope University of Naples
Read the Original
This page is a summary of: Interaction despite of diversity: is it possible?, The Journal of Management Development, June 2015, Emerald,
DOI: 10.1108/jmd-10-2013-0131.
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