Taiwanese Business Culture

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Taiwanese Business Culture

Non-Verbal Communication

-Physical contact is used to show a sense of closeness (understanding a person) -Gestures are used often to enhance a message. -This can include using your whole hand to point at something rather than using one finger -In the Taiwanese culture, smiling often means someone has brought up a sensitive topic or can be shown to represent embarrassment/nervousness

Spatial Perception

-The Taiwanese do not believe in 'personal space' -Taiwanese are very friendly people, and believe that before engaging in any relationship it is important to get to know someone personally -When a Taiwanese person stands close to you, it means that want to be friends and are looking forward to establishing a relationship - An example of this can be in a business setting. If a Taiwanese representative is standing close it simply means they are interested

Hofstede Dimensions

Uncertainty Avoidance -Taiwan scores 69 meaning it has a high preference -The Taiwanese like to maintain rigid codes of belief and behavior and are intolerant of unorthodox behavior and ideas -In this culture there is almost an emotional need for these rules. -Examples include time is money, precision and punctuality are important

Power Distance -Taiwan scores a 58 in this dimension -This illustrates that Taiwan has a hierarchical society -People accept this without question as they believe that everyone has their own place within society -An example of this is how people in senior positions are treated differently (ex. bowing)

Long Term Orientation -Taiwan scores 93, making it a pragmatic, long-term orientation culture -Societies with this show an ability to adapt to modern traditions -This is one of the top 3 dimensions as the Taiwanese want to remain cultured, or 'in loop' with the Western culture

Verbal Communication

-Ambiguous speech and understatements are used to convey a message -Avoid topics that mat offend anyone. Their speech pace is slow to ensure the wrong thing is not said -Greeting are often said in Mandarin

Time Perception

Mono chronic -The Taiwanese culture is mono chronic as their culture revolves around strict rules and regulations -For example, Taiwan has a very small percentage when it comes to paid vacation. This is because the Taiwanese believe in the theory of time being money -Due to the mono chronic culture, it is believed that focusing on one thing at a time contributes more to success, and the theory of 'quality over quantity' heavily applies

Business Etiquette

What to NOT do?

Do not talk about politics

Never loose eye contact. It is a sign of disrespect

Never take food without being asked

Never say 'no', instead 'we'll try' or 'not yet'

Never set deadlines. Decisions are made slowly and collectively

Never point with your index finger. Instead open with an open hand.

Never bring attention to feet. They are seen as dirty.

Never introduce yourself. A third party (host) will always be responsible

What to DO?

Men and women wear business clothing that are conservative blues and grey

Always get to know others personally before starting to talk about business

Allow your counterparts in Taiwan to set the negotiation pace

Always be a few minutes early

Always bring a gift for the host as a way to show your gratitude

Greeting someone by asking them if they've eaten is seen as being polite

When greeting or saying goodbye someone slightly nodding your head is respectful