New field research clarifies how cultural differences play

a role in U.S.-Mexican business alliances.

Doing Business in Mexico:

Understanding Cultural
Differences
GREGORY K. STEPHENS CHARLES R. GREEK

he North American Free Trade Agree-
T ment (NAFTA) has sparked a tremendous
increase in business activity between U.S. and
Mexican firms, boosting the two countries' al-
ready immense trade. But this new activity
also has brought a vital issue to the forefront:
In the coming years, as NAFTA reduces or
eliminates many trade barriers and fosters
closer business alliances, a company's ability
to manage cross-cultural and cross-national
differences will be more critical than ever.
A number of recent events suggest that
this will be an enormously difficult task.
These include the devaluation of the Mexican
peso and the dissolution of high-profile joint
ventures, such as those between Coming and
Vitro, and Burlington Northern and Grupo
Protexa. In recent years, many U.S. compa-
nies have experienced disparities in manage-
ment and business practices in Mexico. For
new U.S. entrants into Mexican joint ven-
tures, such disparities provide even greater
challenges. To resolve cross-cultural differ-
ences, these firms may need to use manager-
ial approaches different from those that have
proven successful in a single-culture context.
A Mexican marketing manager sums it up
well:
lit] seems to me that the most impor-
tant issue we have to face is that we
have cultural differences, no?...In Mex-
ico, we are in a transition time...We are
changing rapidly from a business point
of view and from a management
style...We [still] have cultural differ-
ences we have to face. We have to rec-
ognize that and face that in order to
understand much better, no?
With that in mind, we conducted a study
of managers and professionals involved in
Mexican-U.S. joint ventures. Our goal was
twofold: First, to gain firsthand knowledge
and understanding of the ways in which cul-
tural differences challenge or disrupt man-
agerial interactions in joint ventures. Second,

The authors would like to thank David Lei and Aparna Cascella for their kind assistance in
improving and polishing the ideas in this article. Financial support for this research was provided
by the Charles Tandy American Enterprise Center at Texas Christian University.
39

Gregory K. Stephens is assistant professor
of management in the M,J. Neeley School of
Business at Texas Cbristian University, He
earned his Ph.D. from the Graduate Schooi
of Management at the University of Califor-
nia, irvine, specializing in organizational be-
havior. His recent research has appeared in
such journals as the Journal of Management
and the Journal of Management Studies, and
current research interests include U.S,/Mex-
ican managerial interactions, career stages
and transitions, and work-family balance is-
sues. He currently serves on the executive
committee of the Academy of Management
Careers Division.
Dr. Stephens is bilingual (English and
Spanish), and worked in Chile, South Ameri-
ca. He is a Texas court-authorized mediator,
specializing in business-related disputes and
family conflicts. He has mediated disputes for
sucb organizations as Dispute Resolution
Services of Tarrant County, the Acton (Texas)
Independent School District, and Texas Chris-
tian University. He has also consulted or con-
ducted management education and training
for Merrill Lynch and Co. and the City of Fort
Worth, and through the executive education
programs of the Tandy American Enterprise
Center at Texas Christian University.
40
to identify ways in which individuals and or-
ganizations can circumvent or overcome these
challenges.
To those ends, we conducted 21 intensive
interviews with Mexican, U.S., and third-
country nationals who worked as executives,
managers, or professionals in firms involved
in joint ventures or providing services to
them. (The interviews were conducted in 1994
in Mexico City and Chihuahua.) We also in-
terviewed Mexican and U.S. government
trade officials and reviewed the management
literature.
Additional data were collected through a
1994 survey of Mexican managers and pro-
fessionals participating in an evening MBA
program in Mexico City. We obtained other
observations and insights into managerial
practices during visits to maquHadora manu-
facturing plants in 1993, visits to leading Mex-
ican business schools in Puebla, Mexico City,
and Chihuahua, and from our persona! expe-
riences while living in Mexico and South
America.
Not surprisingly, the management litera-
ture is unequivocal about the difficulty of es-
tablishing joint ventures, even under the best
of circumstances. Cross-national alliances al-
most certainly lead to conflicts when deeply
held cultural assumptions initiate or com-
pound differences in organizational process-
es, technology, and other factors. Cultural
values often lie at the heart of these chal-
lenges, making it difficult to resolve the prob-
lems. But the consequences of ignoring cul-
turally based challenges can be severe; they
may include extended periods of poor per-
formance, disharmony, missed opportunities,
and, as noted earlier, even the dissolution of
a joint venture.
Thus, insights into cultural differences
can help managers develop uruque and effec-
tive ways to meet the challenges. First, how-
ever, they must understand the nature of the
problems that may arise when people from
two diverse cultures interact closely with one
another. Unfortunately, many Mexican and
U.S. companies have entered into joint ven-
tures or strategic alliances with provincial atti-
tudes and little or no international experience.
As a result, they may lack the cultural under-
standing and sensitivity needed to build suc-
cessful relationships v/ith cross-cultural part-
ners. One Mexican executive stated:
One of the ingredients of a successful
joint venture is [to be] educated as to
how things are done outside...[Some
U.S. executives] smell a good opportu-
nity and they want to do something in
Mexico...And some of these men have
never been [or] done anything outside
the States, you know, and so the world
is the way it's done back home. They
are ill-equipped. The same thing hap-
Charles R. (Bob) Greer is professor of man-
pens with a potential partner in a joint
agement at Texas Christian University. Pro-
venture with a Mexican individual [or]
fessor Greer received his PhD. from the Uni-
entity, no? You've got an individual
versity of Kansas, specializing in human
who has never done business outside
resource management and industriai rela-
Mexico and hasn't been exposed to
tions. He has authored or co-authored three
how [the partner] operates. You have
booKs: Strategy and Human Resources: A
the makings of a potential disaster...
General Management Perspective: Person-
Indeed, our study found that national cul- net Management: Jobs. People and Logic;
ture has a powerful influence on people's in- and Managing Human Resource Decisions:
terpretations, understandings, and assess- A Computer-Based Approach. His work has
ments of those with whom they work- appeared in numerous respected journais,
Cultural values can affect decision making, including the Academy of Management Jour-
managerial style, interpersonal trust, team- nal, Academy of Management Review, Or-
work, and the role of women in the work- ganization Science. Journal of Management.
place, among other issues. Here, we explore Human Resource Management, Personnel
four broad-based cultural values that can in- Psychology. Industrial Relations, and Human
fluence the success of Mexican-U.S. joint ven- Relations. He currently serves on the editori-
tures and alliances. These values are power al boards of the Academy of Management
distance, uncertainty avoidance, individual- Journal and the Journal of Labor Research.
ism/collectivism, and masculinity. and is a past member of the editoriai board of
Entrepreneurship Theory and Practice. He
has also served as president of the Southern
Management Association,
WHEN POWER DISTANCE
Professor Greer has consulted with or
IS A HANDICAP
conducted executive deveiopment programs
In his ground breaking work on cultural val- for numerous organizations, He has also
ues, first published in Organizatioiwl Dynamics, taught in executive development programs at
Geert Hofstede defined power distance as the Texas A&M University, Okiahoma State Uni-
extent to which people accept unequal distri- versity, and Texas Christian University. Pro-
butions of power. Later research showed that fessor Greer is also a labor arbitrator.
Mexico and the United States differ greatly in
this respect, with Mexicans being much more
willing to accept power distance than are
Americans. (The two countries scored 81 and
40, respectively, in that research.) Our inter-
41
views of Mexican and U.S. managers and pro-
fessionals suggest that this difference mani-
fests itself in the following ways:
Managerial Style
The Mexican managerial style has been char-
acterized as autocratic and paternalistic.
Many of the managers we spoke with, how-
ever, indicated that an exclusive reliance on an
autocratic style is not likely to lead to success
in Mexico. Today's managers and profession-
als, in particular, do not respond well to di-
rectives and commands, although they may
have done so in the past. These employees are
less accepting of autocratic styles than are
lower-level workers.
Furthermore, managers can better gain
employees' commitment to directives by in-
forming all levels, including the rank and file,
of the underlying reasons for their decisions.
However, we found wide agreement that su-
pervisors and subordinates in Mexico main-
tain a greater social and professional distance
than do their counterparts in the United
States. Mexican subordinates are more defer-
ential and less likely to challenge or oppose a
supervisor's ideas or directives, especially
across hierarchical levels. While participatory
styles have become more appropriate in Mex-
ico, many employees still hesitate to provide
decision-making input or assume decision-
making responsibilihes and risks.
A reluctance to challenge decisions also
appears to stem, in part, from the greater re-
spect and sensitivity employees offer to other
workers of all ranks, both within and across
hierarchical levels. Mexicans are far less toler-
ant of abrasiveness and insensitivity in man-
agerial styles than are Americans. This style is
antithetical to gaining subordinates' support
and compliance.
One manager said, "Is it not true that
good managers are understanding no matter
where they are? And bad managers are not?"
Another indicated that his workers show both
respect and affection for him by referring to
him with the diminutive Inge (for engineer)
instead of the professional title of Ingeniero.
This example of respectful yet informal ad-
42
dress exemplifies the formal and informal du-
ality of the Mexican managerial style.
Although the predominant Mexican man-
agerial style may be authoritarian, a compa-
ny's ownership and stage of evolution also in-
fluence differences in style. Mexican managers
who work for multinational corporations in
Mexico, such as Ford and Johnson & Johnson,
generally seem more similar to U.S. managers
than those who work for Mexican firms. Fur-
ther, managers in high-standards Mexican
companies that have close contact with U.S.
firms, such as many in the northern regions,
have developed managerial styles much more
similar to those of American managers.
In the past, however, some U.S. managers
have had a hard time developing an appro-
priate interpersonal style, especially in their
dealings with unskilled, semi-skilled, or less
well-educated employees, as indicated by
Mariah de Forest:
As in any authoritarian order, Mexicans
value status and its observance. Ameri-
cans regard status as "undemocratic"
and try to minimize the differences by
dressing casually, calling [someone] by
his/her first name (and insisting that we
be called by our first name). Americans
try to train Mexican supervisors to do
the same. But Mexicans accept the hier-
archy and their "stations" in life. To
them the issue is honor, not equality.
Rather than resent their "rank," work-
ers expect respectful recognition of
their roles within the hierarchy. Even
the janitor expects respect.
Despite these power differentials, one
U.S. expatriate observed that, "In Mexico they
will say 'yes sir,' but go ahead and do it the
same way they were doing things as before."
This executive did not see differences be-
tween Americans and Mexicans in their resis-
tance to change. But other interviewees, both
U.S. and Mexican, said that, in some ways,
Mexicans adapt more quickly to workplace
change. This adaptability may be due, in part,
to their acceptance of the supervisor's author-
itarian role. When a manager says, "We are
now going to do things this way," Mexican
workers are more apt to accept the change.
Their acceptance of technological change may
vary by region, as workers from the south of
Mexico generally have less exposure to new
technologies.
Finally, Mexican workers tend to treat
each other in a more respectful manner than
one might find in many U.S. workplaces. A
third-country national on assignment in Mex-
ico stated, "You can hurt the feelings of Mex-
ican workers very easily," while a U.S. expatri-
ate noted that Mexican workers need "more
communication, more relationship building;
they need more reassurance than employees
in the United States." U.S. managers who fail
to adapt to Mexico's "softer culture" can pro-
duce disastrous results—and even break a
deal. In one case, a Mexican firm called off a
joint venture because a U.S. plant manager's
interpersonal style was abrasive. This "soft
culture" reflects the informal side of the for-
mal/informal duality of the Mexican manage-
rial style.
Decision-Making Processes
In Mexican organizations, decision-making
authority tends to be centralized, somewhat
undemocratic, and retained among a few top-
level managers. Factors influencing this cen-
tralization include the accepted status differ-
ences between managers and subordinates
and a clear separation of work roles. One
manager explained:
Managers in the United States...tend to
be more democratic in the making de-
cision process...But most of the time in
Mexico, the making decision process is
not very democratic, no? The boss says
something and all employees have to
follow that instruction. There is no
room for discussion or for the expres-
sion of opinions. In the United States, I
think, it's common and it's allowed to
express yourself, your opinion. You can
disagree to your boss...Here in Mexico,
unfortunately, that does not hap-
pen... We cannot say something against
(the supervisor's] opinion in public.
Maybe after the meeting [rarely]...but
that is in private. In public, it's not a
common practice.
In addition to hindering the decision-
making process, this authoritarian manage-
ment style probably has had a demotivating
effect on the work force. As one U.S. expatri-
ate said, workers learn that, "If not told to do
it, they don't do it." Thus, many U.S. man-
agers find it a slow and difficult process to en-
courage Mexican managers to participate in
decision making. One U.S. expatriate de-
scribed this reluctance as follows;
No one wants to say, "Boss, are you
sure that's the way you want to do it?"
They don't want to help you make de-
cisions; they want to agree if you have
an opinion. It is harder to find leaders
with risk-taking attitudes in Mexico.
Those with it rise to the top quickly.
The experience of a small manufacturing
firm president, who was seeking a Mexican
distributor, also illustrates the implicit cen-
tralization of decision-making authority:
One of the things I saw this week was
that everybody I asked: "Who do I have
to talk to make the buying decision?"
"Oh, it's my supervisor." And you
talked to that supervisor and he says
it's his supervisor that I need to talk to.
The system is not yet set up in such a
way that authority has been delegated
to people to make the decisions that
have to be made for them to do their
job in the most efficient way possible.
Beyond that, joint ventures with Mexican
family-owned Grupos (large collections of
businesses similar to, but not as integrated or
complex as, the Japanese Keiretsu) can pose
special decision-making problems. The pro-
cess may become more difficult if certain fam-
ily members, such as the younger ones, have
less involvement. Given the extremely large
and varied holdingsof some Grwpos, the limits
of family decision making, information pro-
cessing, and control may have been reached.
43
Also, it may be tough to identify the critical de-
cision-maker in the family and gauge the im-
portance of the Grupo's family board.
Impression Management
Many of the executives we interviewed
stressed the importance of status indicators to
Mexican executives, who value perquisites
such as having one or more secretaries, a com-
pany car, and an impressive title. One man-
ager noted, "Self-presentation is very impor-
tant to the Mexican—our appearance, our
reputation, how our peers see us is very im-
portant to us."
Clearly, many Americans also desire such
status symbols. But Mexico's stronger class
distinctions seem to generate a greater need
for status differentials. As an example, one
U.S. expatriate referred to the common sight
of children being met at the bus stop by the
family maid. She's not only expected to meet
them, but also to carry their books and school
materials. On the other hand, the importance
of perquisites may be reflected in a variety of
desirable work and organizational outcomes,
including greater retention, commitment to
the company, and job satisfaction.
We found widespread agreement that
Mexican workers and managers, as a group,
are more likely to emphasize form over sub-
stance than do U.S. employees. This tendency
often leads to counterproductive, face-saving
behavior, a reluctance to admit failure or error,
and a reluctance to inform joint-venture part-
ners of bad news. One U.S. executive stated,
"There is more CYA (cover your ass) in Mexi-
co. There is less admission of mistakes. This is
a big difference." Another added, "Mexicans
will never tell you they don't know. They will
never tell you they made a mistake. They will
never tell you any bad news."
Granted, U.S. managers often suffer from
the same problem. But the proclivity of some
Mexicans to emphasize appearances has been
a thorn in the side of managers who need ac-
curate and reliable information about produc-
tivity and other performance indicators. One
American executive recounted an incident in-
volving a U.S.-Mexican construction project.
44
The project was running behind schedule
and the U.S. partner's CEO was flying down
to review the situation firsthand. On the day
of the CEO's visit, the Mexican construction
firm doubled the number of workers on the
site. The laborers were virtually moving dirt
back and forth to each other, while young
women clad in white dresses, hired for the
day, served Coke and cookies to them.
U.S. Managerial Arrogance
Power distance may be reflected in the way
U.S. and Mexican managers interact with one
another. American attitudes that impose dis-
tance between U.S. and Mexican managers of
similar status hinder the development of suc-
cessful cross-cultural relationships. Attitudes
that ignore cultural differences tend to rein-
force U.S. parochialism and prove destructive
to the close working relationships intrinsic to
Mexican business.
One such attitude, revealed in our inter-
views, is arrogance on the part of U.S. organi-
zations and managers. Whether perceived or
real, this arrogance exacerbates face-saving
behavior among Mexican joint-venture part-
ners. The impression of arrogance may then
be reinforced if the U.S. firm imposes across-
the-board policies and procedures on the
Mexican firm, regardless of their quality or
appropriateness to the Mexican context and
culture. Both Mexican and U.S. expatriate ex-
ecutives pointed to unilateral implementation
of U.S. procedures as a major problem.
Fortunately, U.S. managerial arrogance
may be less evident today than in the past, in
part because the basis for such arrogance may
be eroding. In certain industries, such as ce-
ramics, some Mexican companies have more
advanced technology than their U.S. partners.
Even so, many U.S. managers still show a
great reluctance to accept and learn from
Mexican partners. While top managers gener-
ally are willing to recognize and learn from a
partner's expertise, lower-level managers and
locally based expatriates rarely display such
willingness.
A manager at one company with state-of-
the-art ceramics technology said, "We are the
dominant partner in terms of technology, but
it has been hard for U.S. people to recognize
and accept our expertise and leadership." An-
other stated:
Americans sometimes think they are at
a more advanced stage than Mexicans,
and this is often not true, especially in
Northern Mexico. We are comfortable
with statistical process control, six sig-
ma, and other quality control tech-
niques, even at the line level. Our man-
agers are as well educated and
experienced as managers in the United
States.
U.S. companies demonstrate another
form of arrogance when they demand exten-
sive financial information from a prospective
Mexican partner, but become reluctant or de-
fensive when asked to reciprocate. A manag-
er at a Mexican trade bank said, "Equal finan-
cial information is needed by both partners in
Mexican/American strategic alliances, but
Americans don't want to offer the same that
they expect from Mexicans. And even when
they agree to do so, they do it reluctantly and
with ill-grace." Such suggesfions of superiori-
ty or distrust undermine the effectiveness of
joint efforts. Fortunately, the image of the
"Ugly American" appears to be fading some-
what as U.S. managers become more knowl-
edgeable and culturally aware.
DEALING WITH
UNCERTAINTY AVOIDANCE
Hofstede defines uncertainty avoidance, the
second cultural value, as the extent to which
uncertain or ambiguous situations are consid-
ered threatening. Recent research indicates
that uncertainty avoidance is greater in Mex-
ico than in the United States (with scores of 83
and 45, respecfively). Our interviews, howev-
er, suggest that the differences may not be as
great as expected among professional and
managerial personnel. Indeed, Mexican man-
agers' vdlUngness to take risks, which would
be inconsistent with a desire to avoid uncer-
tainty, may not differ greatly from that of
their U.S. counterparts. Here, we note other
important differences that support Hofstede's
research:
Staffing Procedures
Typical Mexican staffing procedures reflect
the greater value that Mexican culture places
on uncertainty avoidance, and these prac-
tices may be at odds with U.S. staffing ap-
proaches. However, many joint ventures
have achieved success through their staffing
procedures, especially when they tap the
personal networks of managerial and profes-
sional employees.
Interesfingly, some highly educated and
well-trained bi-lingual Mexican managers
and professionals can command a salary pre-
mium over their U.S. expatriate counterparts.
But at lower levels, where qualified applicants
are abundant, comparues often can be selec-
tive in their hiring. For example, a U.S. auto-
mobile manufacturer that needed to staff a
new engine plant hired 250 of 3,000 appli-
cants for unskilled producfion jobs and 125 of
1,500 applicants for skilled jobs. The down-
side of such selectivity is that the company
may have incurred greater turnover, in part
because it hired overqualified workers.
Selective hiring also helps ensure a good
match between employees and a joint ven-
ture's needs. While Mexico is a low-wage
country, the cost of an employee terminafion
can be quite high, which makes it a less viable
option in the event of mismatches. The legal
system mandates a severance payment of
three months' salary for an employee with
more than a year of service in a firm. The gen-
eral percephon is that Mexican labor courts
invciriably decide for the employee in contest-
ed terminafions, further underscoring the im-
portance of prudent selecfion. Conventional
v^risdom holds that a terminated manager will
receive up to $3,000, whether or not the ter-
minafion was for good cause.
Interpersonal Trust and Confidence
Successful joint ventures create synergy and
harness the abilities of each partner. Before
45
 that can occur, each firm must be honest with
the other about its strengths and weaknesses.
But in the past, a lack of candor appears to
have been a problem in U.S.-Mexican joint
ventures. As one manager stated, "Both cul-
tures tend not to have a lot of confidence in the
other one." A respondent to our written survey
added: "We need to know each other better.
There exists no confidence between us, even
when we are neighbors." Other U.S. business
alliances, such as those in Eastern Europe, have
experienced a similar lack of confidence.
On the other hand, a Mexican firm may
be at a disadvantage if it trusts the U.S. part-
ner too much. According to one Mexican in-
terviewee, U.S. managers often seem to feel
that Mexicans cannot be counted on to deliv-
er as promised, and therefore demand full
payment up front. But they do not apply sim-
ilar standards to themselves. This person stat-
ed, "Mexicans are too trusting of U.S. compa-
nies...they are very naive...because they are
American, they think they must be good
companies, good businesses. We are very
naive." She offered the example of a Mexican
firm that sent a letter of credit to an American
firm for merchandise it had not yet had a
chance to approve. When the shipment
proved to be in error, the Mexican firm had
no recourse because the U.S. firm had al-
ready received payment.
Unfortunately, many of our contacts ac-
knowledged that a reputafion for being un-
dependable often has a basis in fact. One
manager said, "In Mexico, we tend to promise
a lot, and somefimes we should just shut up."
The underlying problem appears to be the
Mexican's partner unwillingness to disap-
point, which leads it to make unrealistic
agreements. Of course, the U.S. executives are
disappointed when the Mexican firm cannot
complete a task as promised. This reinforces
the percepfion of undependability. It certain-
ly does not promote the kind of understand-
ing that can help resolve the problem.
Escalation of Commitment
In some cases, Mexicans' tendency to avoid
bad news may escalate their commitment to
46
losing courses of acfion. What's more, the ef-
fects of uncertainty may compound the po-
tential impact of this tendency in cross-cul-
tural joint ventures.
The problem: Mexican partners may not
admit to mistakes because they feel uncertain
about how U.S. partners will react. Likewise,
the authoritarian style of many Mexican man-
agers does not encourage upward communi-
cation of subordinates' misgivings about a
course of acfion.
Furthermore, joint ventures with U.S.
companies often represent substantial oppor-
tunities for career advancement, visibility,
and economic gain. As a result, Mexican man-
agers may tend to link joint-venture out-
comes with self-esteem and the state of their
professional lives. They also may filter contra-
dictory informafion through their own per-
cepfions, define project losses as personal fail-
ures, and try to keep others from learning of
mistakes. All of these factors can heighten the
commitment to a poor course of acfion, with
devastafing effects. Managers may view long-
term problems as temporary setbacks or con-
tinue to pour resources into a project long af-
ter it has become irrafional to do so, in the
hopes that the additional resources will bring
about success.
Contracts, Control, and Expectations
Considering these condifions, some U.S. firms
rely heavily on extensive and well-negotiated
contracts with Mexican partners. But this ap-
proach presents several problems. For one,
it's much more difficult to enforce contracts
with international partners than domesfic
ones, given the differences in legal systems
and codes. Just as importantly, a heavy em-
phasis on contractual negotiafions and details
can communicate forcefully that the relafion-
ship is unimportant or the partner cannot be
trusted.
In a culture such as Mexico's, which
places a high value on relafionships and mu-
tual trust, the resulting difficulfies might well
be insurmountable. Face saving and style may
be as important as economic value added.
Several managers and executives noted that
while Mexican-U.S. business alliances may be
visibly sealed with contractual negofiafions,
the "handshake"—the underlying relafion-
ship built on trust and mutual respect—must
come first.
In actuality, any Mexican-U.S. joint ven-
ture operates under two contracts that reflect
the duality of Mexican culture. The psycholog-
ical contract inherent in the venture co-exists
with, and is no less important than, the more
formal contract. The psychological contract is a
dynamic, informal, "living" contract reflected
in the day-to-day bargaining that underlies the
operating context of the joint venture.
COLLECTIVISM VERSUS
INDIVIDUALISM
Hofstede's third cultural value reOects a con-
finuum ranging from collecfivism to individ-
ualism, a dimension supported by the more
recent work of Fons Trompenaars. In a collec-
fivisfic culture, people value social networks
and relafionships and expect group members
to support and sustain one another. In more
individualistic cultures, people are expected
to be self-sustaining, and their responsibility
for others rarely extends beyond the immedi-
ate family.
Recent research has found that the Unit-
ed States is far more individualisfic than Mex-
ico (with scores of 91 and 30, respecfively).
Our study offers some insights into why this
difference presents a major obstacle to effec-
tive interacfions between Mexican and U.S.
firms and individuals.
Importance of Relationships
We found that personal networks and rela-
fionships play a much bigger role in business
success in Mexico than they do in the United
States. One execufive stated, "In Mexico you
have to know somebody to do business.
There is much reliance on personal net-
works." Another pointed out that "...the per-
sonal relationship carries into the business en-
vironment more here than it would in the
States...a Mexican execufive would be reluc-
tant to make [a deal] with somebody he did-
n't have a good feeling about."
The reliance on well-developed relafion-
ships and networks shows up in many busi-
ness arenas. For example, an insurance exec-
ufive noted that Mexicans almost exclusively
do business with people with whom they
have personal relationships. The "hard" as-
pects of buying insurance, such as cost and
coverage, carry less weight than the "soft" cri-
terion of the strength of the relationship.
Mexicans also tend to be more loyal and will
defend their dealings with an insurance ven-
dor on the basis of the relafionship, not the
cost. Although cost will become more impor-
tant to Mexicans as risk management be-
comes increasingly specialized, these "soft"
relafionships undoubtedly will remain more
infiuential than in the United States. Again,
the crifical role of the "hard" and "soft" as-
pects of these interactions reflect the
formal/informal duality of the Mexican cul-
ture.
Teamwork in Mexico
A fascinafing aspect of the Mexican culture is
that it may promote a quicker adaptafion to
teamwork than does U.S. culture. One inter-
viewee argued that, "An advantage of Mexi-
cans is that they care for and about each oth-
er. Team spirit is real; they will help people in
trouble. If a supervisor is in trouble, they will
help him. They are high communicators in
their group."
We found numerous cases of effective
teamwork in Mexico, along with a widespread
opinion that teamwork is a growing strength
of Mexican firms. One company where we
conducted interviews reorganized under a
self-directed team structure and reduced em-
ployment in its Juarez plant from 200 to 120
people, while boosfing plant ufilizafion to 100
percent in a single year. General Motors, for
its part, has its highest-quality plant in the
world in Ramos Arizpe, near Salfillo, Mexico,
as noted in a recent Business Week arficle. The
plant achieved its record-setting quality and
work force fiexibility largely through the use
of work teams. Other GM Mexican plants are
47
not far behind.
Although self-directed work teams have
not yet been broadly implemented in U.S. or
Mexican companies, we found substanfial in-
terest and movement toward more teamwork
in Mexico. A large engineering consulfing
firm, for instance, has afiat,team-oriented or-
ganizafional structure, team processes, and
team evaluafions. A large mulfinafional in the
chemicals industry is implemenfing team-
based approaches and using team-based com-
pensafion for some employees.
Mexican workers' desire for affiliation
may enhance the effectiveness of the work-
team concept. Some Mexican employees de-
velop such strong allegiances to a company
that they view it almost as family. In addition,
the more coUectivistic Mexican culture may
facilitate more effecfive implementation,
maintenance, and ufility of work teams, al-
though Mexican power distance scores sug-
gest that the teams may expect and require
more direction than the semi-autonomous
teams now being implemented in many U.S.
organizations. One manager's comments sug-
gest that a company must augment clear mis-
sion statements with more explicit, tactical di-
recfives. As he put it:
Self-directed work teams are very
big...If they are managed properly,
teams can be very successful here in
Mexico... [However], lower levels often
have misconceptions about who is in
charge...The way to issue directives
differs here. One must use a more per-
sonal touch...
MASCULINITY: A COMMONALITY?
In a masculine culture, asserfiveness, materi-
al acquisitiveness, and disfinct and separate
gender roles predominate. Research indi-
cates that Mexico and the United States both
have relatively masculine cultures (with
scores of 69 and 62, respecfively). However,
our discussions with Mexican and U.S. man-
agers revealed some important differences—
of degree, rather than content—in the mas-
48
culine-oriented U.S. and Mexican work-
places. Among them:
The Mexican Work Ethic
Mexican and U.S. employees differ in their
work ethic, and U.S. managers may be un-
prepared for this cultural difference. Many
soon discover that the "mafiana syndrome" is
real and that some Mexican workers appear
to have little sense of urgency. Conversely,
U.S. observers often see Mexican workers per-
forming hard physical labor for long hours
under difficult condifions.
Indeed, we continually received conflict-
ing information on this issue. With current
condifions of underemployment, many jobs
appear to be overstaffed and it is easy to con-
clude that workers lack mofivafion. However,
two points bear mentioning. First, over-
staffing conditions are likely to change as the
opening of Mexico's markets increases com-
pefifion. Second, mofivafional problems in
Mexico, as in the United States, may be relat-
ed to very low levels of education and limited
opportunities at the bottom of the occupa-
fional and skill hierarchy. We found little evi-
dence of the "mafiana syndrome" in well-man-
aged companies or among middle and upper
hierarchical levels.
Training as a Bonding Mechanism. On
average, Mexican managers and professionals
have had fewer opportunities for ongoing
training and development. They are eager to
take advantage of such opportunifies, includ-
ing cross-training, but they often face a dearth
of developmental opfions. It is easy to envi-
sion the greater mofivafional impact of train-
ing on lower-paid Mexican employees, since
they generally view training as the path to
upward economic and social mobility.
U.S. and Mexicanfirmsalike often consid-
er training and development programs too
costly. However, given the high turnover rates
among Mexican employees, some have found
the programs to have substanfial benefits. In
Ford's high-quality Hermosillo plant, man-
agers credit training as the primary reason for
significant reducfions in employee turnover.
In such cases, training and development can
bind valued employees to the organization
and help to optimize returns from technology.
The highly educated, professional class in
Mexico exhibits a tremendously strong work
ethic. These individuals, particularly those
who are bilingual, have enjoyed extraordi-
nary market demand from U.S. firms in Mex-
ico. They often log remarkably long work
hours and assume extraordinary responsibili-
ties at significantly younger ages than their
U.S. counterparts. The experience levels of
these young managers will almost certainly
have important implications for succession
plans as multinafional firms look for top-level
leaders to take them into the next century.
Balancing Work and Non-Work Inter-
ests. Virtually everyone we interviewed, both
Mexican and non-Mexican, agreed that Mex-
icans place a greater emphasis on non-work
interests than do Americans. Mexicans see
themselves as being less unidimensional and
assign higher priorifies to life domains such as
the nuclear and extended family, personal re-
lafionships, religious acfivifies, and leisure ac-
fivifies. As such, they may be less likely to lose
perspective and become obsessive about their
work.
However, this cultural difference may
fade in the coming years as America's busi-
ness presence in Mexico expands. Some ob-
servers perceive an increased pressure on
Mexicans to accept U.S. perspecfives of work
and life style. We found some small-scale evi-
dence of such a transition, including store
hours and the elimination of the tradifional
afternoon siesta fime.
Women in the Workplace
U.S. and Mexican cultures differ substanfiaUy
in their treatment of men and women in the
workplace. This quickly becomes apparent
when one sees the custom of male supervi-
sors kissing their female secretaries on the
cheek at the start of the day or the abrazo (em-
brace) with which men somefimes greet one
another. One executive explained:
Here everyone hugs and kisses a lot
more than we do in the States. At firet
it was a little awkward for me when a
male business associate wanted to
greet [me] with a hug, but I've gotten
used to it...It's very formal; you shake
twice, you pat twice, you shake again.
But it is kind of a warm thing, or cheek
kissing of females.
In some respects, Mexico has a wanner,
closer culture than does the United States,
which emphasizes communication through
both physical and verbal contact. However, at
least one U.S. expatriate menfioned that he
had become accustomed to kissing his female
secretaries on the cheek and hugging his as-
sociates and appreciated the change. For oth-
ers, this social protocol requires a difficult ad-
justment. As one manager commented, "I
don't want to do this...I have to kiss them
every morning. I don't want to, but the pro-
tocol calls for it and I have to do it."
Gender-Based Perceptions of Work. In
our interviews of Mexican managers and ex-
ecutives, both men and women maintained
that sexual harassment and gender discrimi-
nafion generally are not problems in Mexico.
Conversely, virtually all of the U.S. managers
and professionals we spoke with held the op-
posite position. These perceptual differences
seem to be based on different personal, legal,
and cultural standards of what constitutes
sexual harassment. For example, one female
U.S. expatriate described gender discrimina-
tion in Mexico as follows:
There is sfill a deeply rooted expecta-
fion that once married, a woman
should stay at home. Their husbands
want them to stay home...There is a
very unusual male-female thing in
Mexico. Once married, the woman is
on a pedestal (the saint). The man is out
in the world having fun. (He is the sin-
ner.) So, the only way the woman can
get anything done is to become very
manipulative... There are no legal pro-
tections in Mexico regarding discrimi-
nation on the basis of gender...Sexual
harassment is perfectly acceptable, it is
almost considered a management priv-
ilege. A young woman would never
49
 think of complaining about sexual ha-
rassment. Some even think of it as pos-
itive interest.
This observer expected little change in
the treatment of women in the workplace, al-
though she acknowledged that such behavior
occurs less often at professional levels where
men and women have smaller power differ-
entials. On the other hand, an experienced
Mexican executive, who also has worked for a
large multinational company in the United
States, explained that while some women ex-
perience sexual harassment, it is not a signifi-
cant issue for those who display professional
behavior. She pointed to other factors that un-
derlie the apparent gender discrimination in
the workplace:
Women in business is not a problem in
the big cities, but men are much more
sexist in smaller cities...The problem is
not being a woman, but rather being
married! [There are] also generational
differences in attitudes toward
women. Younger women are more
progressive, more proactive, more ca-
reer-oriented. And women in general
do not wish to have high-ranking posi-
tions, and aren't found in them.
This last point is consistent with the mar-
ianismo ethic—the female counterpart of the
machismo ethic—in which many Mexican
women see their roles as fundamentally dif-
ferent from those of men. They are not only
content to remain in these roles, but actively
resist leaving them.
Career Status of Women. An increasing
number of Mexican women are pursuing pro-
fessional careers, although clearly to a lesser
extent than in the United States. The Interna-
tional Labour Office estimates that Mexican
women now make up more than 43 percent
of the professional labor force, but less than 20
percent of the managerial labor force. Accord-
ing to the National Institute of Statistics, the
percentage of women professionals (at least
25 years of age, with four or more years of col-
lege education) increased from 19.4 to 33.8
percent between 1970 and 1990, although
50
they are not yet well represented in nontradi-
tional roles.
Women may be entering the work force
for several reasons, including a perception
that households can no longer get by on one
income and an increasing desire among
younger, better-educated Mexican women
for professional careers. Even so, the unem-
ployment rate for women professionals of
17.3 percent is still twice that of their male
counterparts. Many Mexican employers con-
tinue to favor males in their hiring practices.
One female executive noted that, in the ab-
sence of legislation prohibiting gender dis-
crimination and due to prevailing social
mores, Mexican employers tend to hire mar-
ried men first, then single men, single women
and finally (and rarely) married women.
A few notable exceptions aside, our in-
terviewees agreed that women have a tough
time gaining respect in managerial jobs and
seldom advance to high-level managerial
posts. One reason is the greater mix of per-
sonal relationships and business socializing.
For example, managers often conduct busi-
ness during lunch, and many of the Mexicans
we interviewed felt it would be awkward to
ask a female purchasing manager or account
executive to lunch to negotiate a deal.
In addition, many people perceive that
women face greater difficulties when they
must supervise the work of others. One man-
ager, whose company has a good representa-
tion of women in professional positions, indi-
cated that his firm and most others would not
send female employees on business trips
alone. Despite these obstacles, some female
Mexican managers have achieved significant
career success and offer encouraging evidence
of change. In one major building products
firm, for example, both the CFO and the cor-
porate treasurer are women. Moreover, they
are well-respected by their male subordinates.
RESOLVING MEXICAN-U.S.
CULTURAL DIFFERENCES
Our investigation reveals nine important
lessons for U.S. and Mexican partners that
want to resolve differences created by the col-
lision of these two cultures. These lessons are
as follows:
1. Exploit and become a functioning part-
ner in Mexican social and business networks.
A clear message from our research is that
Americans must be prepared to invest a lot of
time in developing and maintaining strong
relationships with joint-venture partners. The
Mexican approach to business requires more
meetings and more attention to the social as-
pects of the relationship.
Unfortunately, many goal-oriented Amer-
icans view only task-directed activities as a
productive use of their time. But if joint ven-
tures are to be successful, they must devote
time to the relationship as well. U.S. managers
can become more accepted and valued mem-
bers of social and professional networks by
contributing to the Mexican community at the
individual and organizational levels. These
networks provide access to knowledgeable
confidants who can advise U.S. expatriates on
local idiosyncrasies or cultural factors that im-
pact decision making. They also can provide
"reality checks" when managers encounter
conflicting information about cultural factors.
In fact, these key contacts are indispensable to
senior U.S. expatriates.
Many interviewees argued that joint-ven-
ture partners must have equal status so that
both firms can more easily capitalize on the
synergies of the partnership. Interviewees
from engineering comparues were consistent
in their recommendation that codirectors and
representatives of both companies be located
on-site. While some joint ventures may stand
a greater chance of success when the U.S.
partner exercises closer supervision, it's clear
that the leaders of the U.S. and Mexican part-
ners must have good chemistry and cultural
sensitivity.
2. Allow Mexican employees to reveal fail-
ure or error without losing face. Procedures
that support this process will prove important
when American technological advantages
must be brought to bear on a problem or oth-
er circumstances create a risk of embarrass-
ment or error.
Using preventive and remedial ap-
proaches to the issue, U.S. firms may be able
to ward off an escalating commitment to a los-
ing course of action. Mexico lags behind the
United States in employee training, for exam-
ple, and a greater emphasis on training can
help reduce the potential for error. However,
this preventive measure can be more difficult
to execute than expected, since many Mexi-
can workers may not want to admit specific
training needs.
Companies can implement many preven-
tive measures at the organizational level.
Some examples: rotate administrators out of
projects at regular intervals, separate deci-
sion-making processes, allow for occasional
failures in evaluation systems, implement bet-
ter information systems for tracking projects,
and reward candid descriptions of project
progress. Further, labeling projects as experi-
ments can remove the stigma from their ter-
mination.
Mexicans must feel free to speak up, ad-
mit error, or challenge authority with the
knowledge that they will not be punished. In-
terestingly, technology may offer one means
of helping Mexican partners to avoid losing
face. We saw one efficient planning process in
which a computerized group-decision sup-
port system allowed participants to freely
share different views. At the same time, the
process was estimated to require one-third to
one-half the normal amount of time required
for conventional decision making and cre-
ative collaboration. Another important step is
to educate managers about the warning signs
of an escalation of commitment.
Ultimately, Mexicans must understand
that an admission of error is acceptable in the
organization. The influence of the machismo
ethic, which discourages the admission of
mistakes, must be overcome. Economic fear in
the workplace is a reality in many Mexican
companies and employees justifiably worry
about errors. While Mexican legislation soft-
ens the blow of terminations, mandates such
as severance compensation may not provide
adequate economic buffers against the loss of
a job that pays far more than the minimum
wage level.
3. Don't underestimate Mexican expertise
51
and adaptability in cutting-edge technologies.
Although Mexico still has management prob-
lems, first-time visitors from the United States
may be unprepared for the quality of mid-
and upper-level managers in high-standards
companies. Likewise, they probably will be
surprised by the technical sophistication of
some of these companies. Having lagged be-
hind the United States, many Mexican com-
panies have made a quantum leap into the fu-
tiare by adopting technology and managerial
practices a generation newer than those com-
monly used in U.S. companies.
Due to years of resource deprivation,
Mexicans also have become quite creative in
getting the job done within the dictates of
economy. Now, economic reform and re-
newed capital investment are making tech-
nology available in the workplace. As noted,
even lower-level workers are eager to learn
how to use it. Thus, the introduction of tech-
nology has tremendous potential benefits for
both production systems and employees' per-
sonal growth.
4. Work within Mexican cultural parame-
ters for male/female workplace relationships.
Many interviewees felt that career-oriented
women in Mexico are making greatest
progress in leading-edge and service-oriented
fields. These sectors have shown the strongest
need for their intellectual skills in areas such
as computer science, medicine, law, and ac-
counting. On a broader scale, women still find
it difficult to achieve results in Mexico, al-
though forces against them are moderating.
Unfortunately, women still face substan-
tial bias—and little legislative protection—in
the job selection process. Companies may ask
female applicants personal questions about
their marriage plans or the number of the
children they plan to have. Even women who
are bilingual college graduates find it difficult
to gain employment commensurate with
their skills.
5. Clarify expectations at the start and
throughout the working relationship. Many of
the managers we spoke with stressed that
both partners must set clear expectations for
standards, reporting requirements, schedules,
and specific responsibilities. Informal chan-
52
nels may work best in clarifying such expecta-
tions due to the emphasis on relationships in
Mexico. Providing opportunities for frequent
managerial interactions can be critical early in
the joint venture. As one U.S. expatriate said:
[Organizations and individuals] must
be open and clear about their expecta-
tions...[which] can be difficult because
conflicting expectations often arise
from unconscious cultural values and
assumptions...[They] must have clear
statements of expectations—docu-
mented. The Mexican partner needs to
be given a clear understanding of what
is expected as outcomes. The U.S. part-
ner has to tell the Mexican partner that
it wants reports, that it wants statistical
analysis, etc....The Mexican business
culture is a non-quantitative, non-re-
porting, non-tracking culture.
As this statement indicates, establishing
control systems is a challenge for both part-
ners. Mexico currently has much looser, less
frequent, and less stringent reporting require-
ments than does the United States. However,
cross-border reporting practices should im-
prove with the rapid increase in the number
of Mexican professionals and a greater re-
liance on quantitative methods.
The use of expatriate managers provides
another means of control for both Mexican
and U.S. partners. But the benefits of expatri-
ate stafting must be weighed carefully against
the potential costs, such as local resistance,
cultural misunderstandings, and the possibil-
ity of expatriate failures. Interestingly, some
joint ventures have gained better control by
using English in their internal correspon-
dence. Many Mexicans are bilingual and Eng-
lish has become the common language of
business.
Another consideration: In addition to
clearly communicated expectations and ade-
quate controls, successful joint ventures re-
quire flexibility. Not surprisingly, a joint ven-
ture's initial goals often are not realized
because of unanticipated problems. Flexibili-
ty and local managerial discretion are critical
ingredients in addressing such problems.
6. Embrace Mexican cultural values that
enhance and facilitate teamwork. Mexican
workers' concerns for each other, team spirit,
need for affiliation, collectivistic culture, and
allegiance to employers (or supervisors) facil-
itate the use of work teams. Managers should
capitalize on these strengths by supporting
the Mexican cultural values that enhance the
success of teamwork.
Of course, these cultural factors do not
mitigate the need for appropriate skills train-
ing. Furthermore, due to the cultural differ-
ences noted earlier, companies may need to
manage teams in Mexico somewhat different-
ly from those in the United States. In particu-
lar, teams may expect and require closer su-
pervision and direction, at least in the
begir\ning. They may need different types of
teamwork skills training as well, especially if
the team eventually will be self-directed.
Mexican employees often need to be educat-
ed about skills such as decision making, con-
flict management (as opposed to suppres-
sion), and self-management. Further, the
company must systematically support these
skills.
7. Tailor employee reward systems to cul-
tural and economic circumstances. Although
employees at the lower end of the skills hier-
archy may need close supervision, the mafiana
syndrome appears to be in decline and it is
easy to develop great respect for Mexican
workers. U.S. managers will find it difficult to
draw valid conclusions about such workers'
motivations. Rather than assume a general
lack of motivation, they should pay attention
to situational factors that affect their Mexican
employees.
In recent years, Mexico has seen real in-
come slippage as a side effect of the Salinas
administration reforms and the peso devalu-
ation. Consequently, money has become a
more important motivating force for Mexican
employees. As indicated earlier, Mexican la-
bor law requires companies to pay employees
a Christmas bonus (known as the aquinaldo)
equivalent to one-half month's salary. In real-
ity, most companies pay at least a one-month
bonus and some give the equivalent of two
months' salary. Interestingly, a large multina-
tional corporation recently linked its Christ-
mas bonus to profitability.
Lower-paid Mexican employees appear
to value other extrinsic rewards, including
paid transportation, meals, and a medical
clinic, particularly one that is accessible to
their families. The symbolism of treating em-
ployees well by providing such services is
likely to build loyalty among Mexican work-
ers who respond well to emotional appeals,
familial support, and social support. Interest-
ingly, due to the group-oriented values of
Mexican workers, individually based pay-for-
performance plans may not be as effective as
in more individualistic cultures.
8. Cultivate and support employee initia-
tive and decision making. Many Mexican
managers have not had adequate experience
in making decisions or providing input for
higher-level decisions. The autocratic man-
agement styles prevalent in Mexico and
tightly centralized decision making may
cause managers to lack confidence in their
skills and be overly cautious about participat-
ing in the decision-making process. There-
fore, the decision-ma king skills of many mid-
level managers need further development
and support through organizational reward
systems.
Ironically, in some situations, a U.S. com-
pany may need to preserve the impression of
paternalistic benevolence on the part of Mex-
ican management. An example: a U.S. foods
company wanted to extend an incentive pro-
gram to its Mexican unit. The program, which
was widespread among its U.S. employees,
was resisted by the Mexican managers. To
gain the commitment and support of these
managers, who undoubtedly felt both social-
ly and economically distant from the workers,
the company had to implement the program
gradually and in a manner that would at-
tribute it to the benevolence of the Mexican
managers.
9. Understand and adapt to the transition-
al aspects of Mexican business and culture.
When studying cultural values and manager-
ial practices in Mexico, bear in mind that the
present is a period of remarkable economic
53
and cultural transition. As a result, the con-
ventional wisdom of the past may not hold
true today. Indeed, our own findings are nec-
essarily equivocal because intercompany and
regional differences in the pace of technolog-
ical, social, organizational, and managerial
evolution make it difficult to draw firm con-
clusions.
ADDRESSING THE DUALITY
An underlying theme in our research is that
U.S. managers must be sensitive to the duali-
ty of the Mexican managerial style. They must
emphasize both formal and informal chan-
nels of interactions to build and maintain re-
lationships and cope effectively with cultural
differences. Informal interactions may be
much more effective in dealing with issues
such as impression management, escalation
of commitment, or claritication of expecta-
tions. Clearly, greater awareness and adapt-
ability to cultural differences are the keys.
Some executives may be tempted to ap-
ply our findings to other Central and South
American countries, but we believe this is not
justifiable without further research. While the
cultures of many of our neighbors to the
SELECTED BIBLIOGRAPHY
The values we cited for Mexico and the U.S.
based on Hofstede's cultural values dimen-
sions are found in research by John L. Gra-
ham, ALma T. Mintu, and Waymond Rodgers,
"Explorations of Negotiation Behaviors in Ten
Foreign Cultures Using a Model Developed
in the United States," Management Science, Vol.
40, No. 1,1994, pp. 72-95. The reliance of U.S.
managers on detailed contracts and other cul-
tural aspects of negotiations are discussed in
54
south may appear to be similar to Mexico in
terms of Hofstede's value generalizations,
subtle and not-so-subtle differences in values,
behavior, and assumptions may necessitate
different approaches in other countries. Un-
doubtedly, an increased business interest in
Central and South America will prompt fur-
ther research into these cultures.
In the end, fundamental cultural values
pose a serious challenge to U.S.-Mexican joint
ventures. But these same values also offer op-
portunities for greater synergy and a sharper
competitive advantage. The point is to ap-
proach them with a thorough understanding
of the ways in which people manifest such
values in their behaviors and attitudes.
Avoiding or resisting cultural issues is the
path to failure; using them to enhance the ef-
fectiveness of an alliance is the path to suc-
cess.
Ifyou wish to make photocopies or
obtain reprints of this or other
articles in ORCANIZATIONAI- DYNAMICS,
please refer to the special reprint
service instructions on page 96.
Jeswald W. Salacuse, "Making Deals in
Strange Places: A Beginner's Guide to Inter-
national Business Negotiations," Negotiation
Journal, Vol. 4, No. 1,1988, pp. 5-13.
Supporting examples in this article may
be found in the following articles. The prob-
lems of interpersonal style are discussed in
Mariah de Forest, "Managing a Maquiladora,"
Automotive Industries, Vol. 169, No. 5,1989, pp.
72-73. (The status hierarchy quote is from
page 73.) The quotation regarding implicit
centralization of decision-making authority is
from Carmelo Lodise, "Doing Business in
Mexico Can Be a Major Challenge," The News,
June 12,1994, p. 36. The example of hiring se-
lectivity based on labor supply for a U.S. au-
tomobile manufacturer is described in Harley
Shaiken, "High Tech Goes Third World,"
Technology Reznezv, Vol. 91, No. 1,1988, pp. 39-
47. Quality in GM's Mexican operations is dis-
cussed in Stephen Baker, David Woodruff,
and Elizabeth Weiner, "Detroit South, Mexi-
co's Auto Boom: Who Wins, Who Loses,"
Business Week, March 16,1992, pp. 98-103. The
example of paternalistic benevolence is found
in William R. Sheridan, "NAFTA Raises HR
Challenges for Companies Doing Business in
North America," Employment Relations Today,
Vol. 20, No. 1, 1993, pp. 13-19. The "manana
syndrome" is not well-documented in the lit-
erature, but rather appears to fall in the cate-
gory of business folklore. Its existence is not in
dispute here, but rather its broad applicabili-
ty, particularly with regard to well-managed
Mexican companies.
For further reading on the disadvantages
of training and development for Mexican
employees, see the following: Mariah E. De
Forest, "Thinking of a Plant in Mexico?" Acad-
emy of Management Executive. Vol. 8, No. 1,
1994, pp. 33-40, maintains that effective team
work is uncommon in Mexico. She also notes
the disinclination of Mexican supervisors to
provide reasons for their directives, the Mex-
ican desire for harmonious labor and man-
agement relations, and their reluctance to ad-
mit mistakes. Anne Geyer, "Mexico Trains to
Increase Productivity," Training and Develop-
ment journal. Vol. 46, November 1992, pp. 11-
12, reports on the phenomenally successful
training activities of the Instituto de Hfectivi-
dad Xabre training center of the Grupo
Xabre. Martha H. Peak, "Maquiladoras:
Where Quality is a Way of Life," Management
Review, Vol. 82, March 1993, pp. 19-23, dis-
cusses the shift in many maquiladoras to
training for quality and resulting successes.
Laurence Hecht and Peter Morici, "Managing
Risks in Mexico," Harvard Business Review,
Vol 71, No. 4,1993, pp. 32-40; Gary Vasilash,
"Making it in Mexico/' Production, Vol. 103,
No. 5,1991, pp. 50-53; and Kent Banning and
Dick Wintermantel, "Motorola Turns Vision
to Protits," Personnel Journal, Vol. 70, No. 2,
1991, pp. 51-55, discuss the experiences of
Ford and General Motors with training and
quality programs in Mexican manufacturing
plants. Feraidoon Raafat, Massoud M.
Saghati, Robert J. Schlesinger, and Kenichi
Kiyota, "Training and Technology Transfer:
Efforts of Japanese, Mexican and American
Maquiladora Companies in Mexico," Socio-
Economic Planning Sciences, Vol. 26, No. 3,
1992, pp. 181-190, reports the results of a
study comparing technology transfer
through training in companies from these
three countries. More particularly, the rela-
tionship between quality improvements and
training is discussed in Julio Gutierrez, "Mex-
ico's Total Quality Effort," Quality Progress,
Vol. 27, No. 5,1994, pp. 75-76; and' Mariah E.
De Forest, "When in Mexico...," Business Mex-
ico, Vol. 1, No. 5,1991, pp. 38-40.
The marianismo ethic, as the counterpart
of the male machismo ethic, is discussed in
Jane F. Collier, "From Mary to Modern
Woman: The Material Basis of Marianismo
and Its Transformation in a Spanish Village,"
American Ethnologist, Vol. 13, 1986, pp. 100-
107, and Evelyn P. Stevens, "The Prospects for
a Women's Liberation Movement in Latin
America," Journal of Marriage and the Family,
Vol. 35,1973, pp. 313-321.
The source of information on escalation
of commitment and preventive measures is
Barry M. Staw and Jerry Ross, "Knowing
When to Pull the Plug," Hansard Business Re-
view, Vol. 65, No. 2,1987, pp. 68-74. Use of ex-
patriates for purposes of cross-border control
is discussed in Zaida L. Martinez and David
A. Ricks, "Multinational Parent Companies'
Influence Over Human Resource Decisions of
Affiliates: U.S. Firms in Mexico," Journal of In-
ternational Business Studies, Vol. 20, 1989, pp.
465-487. Additional discussion of the need for
managerial flexibility in joint ventures is avcdl-
able in Joel Bleeke and David Ernst, "The Way
to Win in Cross-Border Alliances," Harvard
Business Review, Vol. 69, No. 6,1991, pp. 127-
135.
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