The Cultural Diversity In Entrepreneurial Teams Commerce Essay

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The paper of Cultural Diversity in Entrepreneurial Teams: Findings of New Ventures in Germany generally demonstrates differs in ways of coping with cultural diversity among entrepreneurs in different national cultures (Ricarada, 2004). In addition, there are six case studies during different venture processes in different propositions, which are approximately expressing and proving author's core ideas and hypotheses. At last, owning to the insufficient literature Ricarada noted that this paper still needs further theoretical and empirical studies on some propositions. Therefore this essay is going to evaluate the paper in three following aspects. In the first place, it will separately illustrate the benefits of the research design and approach of the paper in different factors. In the second place, drawbacks and limitations will be also partly critiqued in some of above mention sections. Finally, based on this paper, alternative research methods will be discussed and the essay ends up with a conclusion.

Benefits of research design and approach


This paper starts with theoretic underpinnings to deliver the concerning interculturality in entrepreneurial team. There is a clear introduction background while the literature presentation could largely demonstrate culture differences. Besides, the paper selection is excellent that the choice of thesis have an advanced research. Obviously, Ricarada has read a large amount of reference so that the novelty is also persuasive because of a wide range of information. Moreover, there is not only a theoretical significance and practical value on business of economic to the society, but also it can embody the academic developments as well as extent and comprehensive analysis in Germany and other countries in this field.

Theoretical Issues

By citing different prior studies or researches on some scholars this section starts up with a clear entrepreneurship theory, which expressed how to organize an organization (Cooper, Folta, & Woo, 1991). According to this idea, it also exemplified four stages (identification, design, selection and implementation) which provide typical problems and roadblocks in the venture progress. Then an explanatory and predictive outcome is deemed by Witt & Rosenkranz that the identification stage of the venture progress is with risk in resource limitation for entrepreneurship (Witt & Rosenkranz, 2002). From each objective view of scholars this section ends up with a short conclusion that individuals in entrepreneurial team can benefit creativity although new ventures require heterogeneous resources. Moreover, there are fierce debates that creativity in ventures addresses the improvement of business models as well as market requirements which will result in an innovation of cultural diversity in managers or founders. (Leonard, 1995) But the author believed that there may be misunderstanding results from diverse cognitions when other members in entrepreneurial team did not understand ideas and reasons for implementation. In this case, this section is relatively reasonable because facts depend on the viewpoint of different observers are discussed. Furthermore, by referencing Hall and Reed Hall's (1990) considerations on diversity in new venture teams, the author not only pointed out that it will be benefit from cross-cultural teams, but also culture differences may also confront with misunderstanding and conflicts.

Method of the Empirical study

This section use questionnaire-based qualitative research to explore deep-level issues of entrepreneurial teams in different stages affected by cultural diversity. Positivism is throughout this empirical study. As a result, the research conducted a comprehensive exposition and demonstration. Methods discussion and multiple cases are used as an objective fact of practice as the results of tests as well as confirmed the reliability of certain theories. (Yin, 1984) Moreover, interviews are applied in entrepreneurial process and perceptions of creativity and cultural variety during different stages. So it will be a facility for cross-case analysis in dissimilarities of the venture stages.

Discussion of the Data and conclusions

In this section, Ricarada utilizes logical proof: using one or a few factors to prove and determine the authenticity of other judgments and hypothesizes. Logical evidence and proposition come from the topics, arguments, and demonstration of different ventures stages in Germany. Meanwhile, this is a logical relationship between the case studies and references which may prove a number of different propositions in the thesis. The data discussion has fully grasped the materials based on analysis and synthesizing. The proven hypotheses are as follows. Issues of exploration and exploitation exist in early stages of a new venture in cross-cultural teams. Polychromic/high-context/low-space cultures are confirmed that entrepreneurs are intensively with responsibilities of structuring works and operations. Through a summary, the founders increase the probability to develop new markets and enable team's creativity according to intensified communication. A point of view is consistent with the theme that team communication in multicultural teams is involved to creativity in different cultures. All in all, discussion of the findings from the theoretical analysis and comment on the significance of research are basically coherent with further analysis of the propositions. At the same time, the author also noted that the limitations in the discussion of results.

Limitations of research design and approach

Literature references

Firstly, this paper are largely cited many scholars researches and studies in theoretical issues. Especially in definition of entrepreneurship, the author cites enough reference to demonstrate in different stages of cultural diversity in ventures team, but there are fewer adequacies of research methods to identify the main definition of entrepreneurship. In the second place, there is not a clear description of citing the referencing that dissimilar entrepreneurial teams would be helpful to enhance the creativity and innovations. Furthermore, there is not an obvious distinguish between quoting and personal opinion, which might confuse readers. Finally, Ricarada used majority of Hall and Reed Hall's (1990) research of cultural dimensions as the basis of experiences and cases in diverse cultural business, which may make the argument insufficient and unreliable.

Research Methods

There are some insufficiencies of the method. Unfortunately, there are no digital figures within interviews about managers and founders of new ventures in Germany. As a result, the outcome of case-cross analysis seems to be unverifiable. Moreover, interviews, which are only taken by German entrepreneurs, could not reflect the whole venture team process from various perspectives.

Discussion of Data and Conclusions

However, the author has pointed out some limitations during this part. There is not enough evidence that communication may hinder the development of innovations. Besides, there is no clear evidence to indicate that monochromic/low-context/high space entrepreneurs perceive cultural diversity dissimilar compared with polychromic/high-context/low-space managers. Those founders who deny positive effects of cultural difference cannot explain the variances. Consequently, some unexplained propositions, which have no significant link between the theory and practice, could not reflect in the social practice of relevance. Meanwhile, it cannot be fully utilized in new ventures.

Evaluation of alternative research methods

Owing to few literatures about collisions and conflicts of cultural diversity, this essay will analyze and evaluate some conflict resolutions of cross-cultural communication and cross-cultural management as alternative research methods.

4.1 Cross-cultural communication

In entrepreneurial co-operation, communication cannot be ignored. Communication management, which includes ensuring timely and correct production, collection, releasing, storage and finally dealing with project information, is an effective process to resolve the conflict (Wederspahn, 2000). Meanwhile, it is a vital element to link the information and ventures. During cross-border projects, the co-operation of different countries which own heterogeneous cultural backgrounds may make a more prominent conflict than local firms so that the communication is particularly important. Cultural diversity is a major factor which led to barriers in cross-cultural communication (Fernando, 2003). Therefore understanding cultural differences as complete as possible focuses on the realization of other's cultural identity while it is not necessarily to avoid the obstacles. Under the premise of understanding cultural differences, on one hand entrepreneurial teams need to deeply recognize diverse cultures during the actual processes. On the other hand, entrepreneurs are also required to maintain awareness of comprehensive in the communication process and use various communication skills in order to continually resolve cultural conflicts and differences, which may continuously promote a smooth progress of cross-cultural communication.

4.2 Cross-Cultural Management

Research and development activities need outstanding talents who have creativity. However, everyone has his or her own strength and characteristic to become an expert. In entrepreneurial team, people who possess different backgrounds and professional skills have been organized together. Only let them develop their potentials they can fully express the power of the team and maintain the team's balance. Due to the different national conditions and cultural differences, when multinational companies apply their proven management system on home country's organizations to manage and motivate local staff, it would be prone to generate the conflict and collision of both sides (Holden, 2002). Consequently, entrepreneurs in local country perhaps ought to accept the thinking and behavior patterns of transnational corporations while the foreign managers have to adjust their own cultural cognitions to understand the ideas and character traits of local country. Clearly, cultural integration has played a key role in entrepreneurial team.

4.3 Proposed Methods of alternative research design

For entrepreneurial teams, the study of cultural diversity will combine international status of some countries in new ventures. Then according to the research and summary of the relevant cross-cultural management theory, it will analyze typical cultural differences and build a cross-cultural management of various cultural backgrounds in accordance with basic theory and practice. The structure is as following.

First, it will sum up theory of cross-cultural, cultural conflict and cultural management, which is useful for in-depth analysis of cultural variety. Then it will also explore the formation of cross-cultural management which may result in impact on cultural diversity. These theoretical knowledge and researches enable a theoretical foundation. On this basis, the evaluation gradually describes causes and manifestations leading to cultural differences in multinational enterprises. Through diversity of management in different countries (such as the United States, Germany, Japan, China), this essay will discuss cultural conflict and impact, which is based on a comparative analysis of different entrepreneurial team. Then, it will specifically discuss findings of new ventures in multinational management within heterogeneous cultures, in particular Western cultural differences in various aspects of entrepreneurship caused by different understanding. From the above mentioned factors, the alternative method emphasizes the importance of cross-cultural management which used the contrast analysis. Next, it will utilize examples as evidence by way of questionnaires to profoundly expound the cross-border of different ventures in cross-cultural management. The method also contains a combination of theoretical research and empirical analysis as well as an integration of qualitative and quantitative analysis. Then it will use some mathematical models in conjunction with research data analysis and point of arguments. In the end, because of cultural variety there are some recommendations and suggestions on cross-cultural management of entrepreneurial team. They are the recognition of cultural differences, cross-cultural communication strategies, balanced structures, common business goals as well as implements of cross-cultural management through business ventures.


This paper studied in its own innovative context that there is a breakthrough in the development of theories in cultural diversity. In addition, it is essentially consistent with the basic integrity of the structure. Besides, the language utilizing among this the paper is relatively fluent that there is no major grammatical error. After repeating studies which have concluded the overall argument, cultural dimensions in cultural diverse entrepreneurial teams are required to be accepting management of heterogeneous cultures in new ventures. Moreover, the empirical study is necessarily based on accurate and reliable data as an argument after rigorous logic demonstration. As a result, theoretical the point of views is clear and convincing to withstand scrutiny and verification that results has basically supported the hypothesis. Through a method of scientific exploration, this article is well presented on the textual representation of results which has a scientific research because it is based on accurate and reliable data as arguments after rigorous logic demonstration to the understanding of cultural diversity in new venture teams. Nevertheless, the author finally discusses his findings from the theoretical analysis and comments on the significance of research findings for further analysis. He noted that due to limitations and incomplete literature this paper still needs an in-depth analysis throughout the process and problems of cultural variety in entrepreneurial teams. At the same time, entrepreneurs who plan to practice and start new business in intercultural management still need to get further information about cultural diversity in new ventures.