The influence of cultural differences on the performance of international contractors

Sooner or later most contractors which achieve success in their domestic markets opt, or are forced, to seek work outside their country borders. Adaptation to international competition and new cultures may entail a learning curve of from two to five years and corresponding investment. The alien country cultures affect the contractor's key expatriate staff and requires the contractor to address new ways of working with local clients, staff, labour, suppliers and subcontractors. Practical examples are given of this. Attempts are then made to measure the effects of alien cultures on the international contractor's productivity and a table is presented indicating approximate productivity correction factors which could be adopted for various countries around the world.