Editor’s Note:
This article is based on an original contribution by George B. Whitfield III. While preserving the author’s central message, it has been updated for today’s international business environment.
For many years, companies operating internationally have recognised that technical expertise alone is not enough to ensure success. Whether establishing operations in Indonesia, relocating expatriate employees, or leading multicultural teams, one factor consistently influences business outcomes: culture.
Most professionals agree that cultural differences exist. Yet many organisations still underestimate just how much those differences affect communication, leadership, decision-making, problem solving, and workplace relationships.
The greatest challenges rarely appear during periods when business is running smoothly. They emerge during times of uncertainty, organisational change, conflict, or crisis. It is during these moments that people naturally fall back on the communication styles, values, and expectations shaped by their own culture.
In Indonesia, this can create unexpected misunderstandings for expatriate managers. Approaches that are considered effective in some Western workplaces—such as direct confrontation, immediate criticism, public debate, or expecting employees to openly acknowledge mistakes—may not always produce the desired results. Indonesian business culture often places a strong emphasis on maintaining relationships, preserving harmony, respecting hierarchy, and helping others avoid embarrassment.
These differences should never be viewed as strengths or weaknesses. They are simply different ways of approaching the workplace.
One of the most common mistakes international managers make is evaluating another culture using the standards of their own. Describing one approach as “better” or “more professional” often creates unnecessary frustration and damages trust. Successful international leaders first seek to understand why people behave as they do before deciding how best to manage a situation.
Fortunately, many Indonesian professionals today have extensive international experience. Many have studied overseas, worked for multinational companies, collaborated with colleagues around the world, or led regional teams. Likewise, expatriates arriving in Indonesia often bring valuable international experience of their own.
Even so, cultural values continue to influence behaviour—particularly when pressure increases. During organisational restructuring, difficult negotiations, major operational changes, or unexpected crises, people often revert to the communication styles and decision-making patterns that feel most natural to them.
This is true for everyone, not just Indonesians.
One of the greatest barriers to successful international assignments is frustration. Expatriate managers may become frustrated because decisions appear slow, feedback seems indirect, or employees avoid open disagreement. Indonesian employees may become equally frustrated by leaders they perceive as overly blunt, impatient, or focused solely on tasks rather than relationships.
In many cases, neither side is wrong. They are simply interpreting the same situation through different cultural lenses.
The good news is that cultural frustration can usually be reduced through understanding. When managers learn how Indonesian employees view authority, teamwork, communication, trust, and relationships, they become more effective leaders. Likewise, Indonesian employees who understand the expectations of international managers are better equipped to work confidently in global organisations.
Cross-cultural awareness does not require either side to abandon their own values. Instead, it helps people recognise where misunderstandings are likely to occur and adapt their approach without compromising their integrity.
The result is stronger working relationships, greater trust, better communication, and improved business performance.
As international business becomes increasingly interconnected, the importance of cultural intelligence continues to grow. Companies that invest in helping their people understand one another are often better equipped to navigate change, resolve conflict, and build successful long-term partnerships.
The lesson remains as relevant today as it was decades ago:
This article is based on the original work of George B. Whitfield III and has been updated for today’s readers by the editorial team at Living in Indonesia.
