National Culture and Business in Uganda Pt.1

The effect of national culture and the role it plays on international business has for long been debated and sometimes it has been ignored or underestimated. Strategic management has traditionally put its focus on strategies and concepts that affect firms’ performance which answers the question of why some firms perform better than others (Hoskisson et al. 1999).

Other research carried out has showed that not considering differences in national culture may lead to poor performance of international firms. Evaluating and comprehending the essential culture values of nations can help to explain the differences in ethical decisions  making and communication in a global marketplace.

Doing business globally necessitates a comprehensive understanding of different national cultures. What works in country A might not work in Country B and could even be inferred as an insult and also lead to losses for the firm. In international business, it’s important to be aware of cultural issues and how they can affect your business.

Uganda has a diversity of tribes and all these tribes have different cultural beliefs which don’t necessarily represent the culture of all Ugandans. Business is more concentrated in the central part of Uganda- Kampala which is the capital city. The city is composed of almost all tribes but the most significant tribe is the Baganda tribe who are indigenous to this part of the country. Because of a mixture of other tribes, the culture there has been contaminated. Business in this part of the country has had to face this cultural diversity. Businesses in the other parts of the country face the cultures that predominantly exist there. It’s therefore very critical that businesses understand these culture differences and diversities.

One of the major disapprovals against foreign (international) firms is that often they are ignorant and not accommodating to the diverse national cultural differences. For instance during the construction of the Bujagali dam in Uganda, one of the issues raised was that constructing this dam will mean a destruction to Bujagali falls which was a serious cultural loss to the Basoga and this would never be alleviated. The Basoga tribe are actually alleged to be the most clanned ethnic group in the entire world.

It should be noted though that international firms are not expected to be experts on national culture but becoming better skilled at handling and adapting to this kind of challenge is vital because it has effects on international business.