In his analysis, the author of the case proposes four reasons for explaining what happened. What doyou think is the most likely reason?
a)The two contracting parties had perhaps agreed on the first level of organizational integration buthad unfortunately ignored the inter-personal and cultural integration aspect of organizationalsynthesis, which very much provides the necessary foundation for the success of any strategicalliance. Had both parties made a conscious and deliberate effort to understand one another asindividuals with an appreciation for one another’s cultural bearing, perhaps the matters would nothave got out of hand.b)The Germans and the Arabs are at opposite extremes on the monochronic–polychronic scale,therefore communication did not take place in a normal manner. Furthermore, the exigencies of the Muslim religion often complicate the interchange of ideas even more. Yet Arabs are used to dealing with foreigners and readily forgive them for not behaving like Arabs as long as they do not feel personally challenged and insulted.c)In the negotiations, when the German experts in finance, marketing and law met their Arabic counterparts, the Germans’ approach was perhaps to try and clarify facts and determine who held the decision power. To the Germans, the Arabs appeared to be evasive and secretive, not revealing anything. For the Arabs it was not just the ‘facts’ that the Germans seemed to be prying into, but also the mutual understandings between the leaders and themselves.d)Having a ‘specific’ culture, the German managers perhaps found it particularly easy to insult their opposite ‘diffuse’ Arab partners. This is because they do not understand the principle of losing face, which is what happens when something is done that people perceive as being private. It can be inferred from the scenario that Mr. Habib would have perhaps felt very insulted in front of his colleagues if the German contracting party had demanded proof of his claims about the government order.