School of sustainable development of society and technology
EFO705 -
Master Thesis
MIMA program - International Business & Entrepreneurship
Title: Cross Institutional and Cultural Barriers: The Opportunity of Thai
entrepreneurs in doing business in Sweden - Case study of Restaurant business
By
Ms. Alisa
Pongsriwat (1986-05-07) MPT09001
Mr. Wissawa Aunyawong (1986-08-14)
MAG09001
Group No. 2474
Date : 28 May 2010
Supervisor: Sune Tjernström
Abstract
Seminar Date: 28th May, 2010 Level: Master Thesis – EFO705
Program: MIMA – International Business and Entrepreneurship Authors: Alisa Pongsriwat & Wissawa Aunyawong
Title: Cross Institutional and Cultural Barriers: The opportunity of Thai entrepreneurs in doing business in Sweden - Case study of Restaurant business
Tutor: Sune Tjernström
Background: Doing Thai Restaurant in Sweden seems to be opportunity of Thai entrepreneurs as there are potential trend leading to business success and many advantages supporting investment. However, cross institutional and cultural barriers can cause business failure.
Research Problem: How can Thai entrepreneur overcome the cross institutional and cultural barriers for successfully running restaurant business in Sweden to beat in Swedish market? Purpose: Our purpose is to understand and explain the cross cultural barriers in doing Thai restaurant business in Sweden in the context of cultures embedded in both Thailand and Sweden. The foundation of our research is based on the case study of Thai food restaurants in Sweden. Method: Our research is mainly based on qualitative research using the case study and the secondary information gathered during the research. We have also taken into account some primary information by conducting three semi-structured interviews from the Thai owners of Thai restaurants in different locations in Sweden. All the information collected during the course of our research has been analyzed and has finally led us to a conclusion.
Conclusion: After the analysis of outcomes, both from the interviews and the secondary information conducted, we concluded that Thai entrepreneurs need to strictly follow the laws and regulations of Sweden because they cannot be changed. They also need to adapt some norms and cultures but not too much in order to maintain Thai uniqueness as competitive advantage in Swedish market. We have recommended that Thai entrepreneurs should recognize the key characteristics between Thai and Swede as the key successful business.
Contribution: Our research will give the useful information and practical recommendations in the future to the Thai entrepreneurs in Thailand, who are interesting in doing business in Sweden in order to seeking new opportunity.
Keywords: Institutional theory, Intercultural Communication, Cross Cultural Management,
Acknowledgements
This research was so far the most challenging academic work of the authors. Over the period of conducting this research so as to complete this task, the authors have encountered some limitations and difficulties. The accomplishment of this research would not have been possible without the helping hands, support and guidance from the authors‟ institution, tutors, family and friends. Therefore, the authors would like to dedicate this acknowledgement page for those that have contributed to the authors‟ dissertation. First of all, the authors would like to especially express gratitude to the project adviser, Sune Tjernström, for being so generously instructive, supporting and encouraging the authors all along the semester. The appreciation also goes to the authors‟ opponent group by Ms. Pimonpha Rakkanngan and Ms. Wasinee Kittiwongvivat whose comments and point of views which are certainly valuable in improving the quality of this paper. The authors also would like to give the special thanks to Mrs. Toy Johansson, The owner of Thai restaurant in Västerås, Mrs. Bee Ekman, the owners of five Thai restaurants in Sweden and Mrs. Punyanuch Chinprahat, the owner of Thai restaurant in Eskiltuna for their great cooperation in sharing opinions and experiences which are valuable materials for this research. Last but not least, the authors are perpetually grateful to the parents who supported the authors totally since the very beginning of the lives and endowed the authors with the opportunity to obtain such a privileged education.
TABLE OF CONTENTS
Page
CHAPTER 1: Introduction……….…1
1.1 Background……….1
1.2 Problem Statement……….……….2
1.3 Purpose of the study…..……….……….………3
1.4 Scope of the study……..……….………3
CHAPTER 2: Methodology...5
2.1 Research approach……….……….5
2.2 Research design………..5
2.3 Data collection………6
2.4 Quality of research material………7
CHAPTER 3: Theoretical Framework………...9
3.1 Institutional Theory…….………9
3.1.1 Regulative Pillar…….……….9
3.1.2 Normative Pillar………10
3.1.3 Cognitive Pillar ………10
3.2 Intercultural Communication………...………11
3.3 Cross Culture Management……….……….11
3.3.1 Power Distance……….12
3.3.2 Individualism vs. Collectivism……….12
3.3.3 Masculine and Feminine………...14
3.3.4 Uncertainty avoidance………..17
3.3.5 Long vs. Short-term Orientation………...18
3.4 Conceptual Framework………...………19
CHAPTER 4: Findings and Analysis……….………..20
4.1 Doing Thai restaurant in Sweden Overview………...20
4.1.1 Thai restaurant business Overview...………20
4.1.2 Swedish market Overview...20
4.2 Interview Response………...20
4.3 Regulative pillar in doing Thai restaurant in Sweden………...28
4.3.1 Commercial leases and rents in Sweden………...28
4.3.2 Employing staff – Contracts and Conditions………29
4.3.2.2 Term of employment………29
4.3.2.3 Labor relation………31
4.3.2.4 Termination………...32
4.3.2.5 Wage levels and minimum age……….33
4.3.2.6 Working hours………..34
4.3.2.7 Holidays………34
4.3.2.8 Sick leave………..35
4.3.3 Social Security and Pension………..35
4.3.3.1 Pension and Insurance hierarchical………..35
4.3.3.2 The national basic pension and insurance……….36
4.3.4 Food Inspection……….37
4.3 Normative Pillar in doing Thai restaurant in Sweden………...39
4.3.1 Greeting……….40 4.3.2 Communication……….40 4.3.3 Eating habit………...41 4.3.4 Tipping...43 4.3.5 Religion……….………44 4.3.6 Personal Space…...45
4.3.7 Giving gift culture……….45
4.4 Cognitive Pillar in doing Thai restaurant in Sweden………46
4.4.1 Power distance at Thai restaurant in Sweden………...46
4.4.2 Individualism and Collectivism at Thai restaurant in Sweden……….48
4.4.3 Masculine and Feminine at Thai restaurant in Sweden………49
4.4.5 Uncertainty avoidance at Thai restaurant in Sweden………....50
4.4.5 Long vs. Short-term Orientation at Thai restaurant in Sweden………54
4.4.6 Tabular view of national culture……...………55
4.5 Summary………..………56
CHAPTER 5: Conclusion………....57
Reference lists…...59
ILLUSTRATIONS
List of Figures
Figure 1: Conceptual Framework………..18 Figure 2: Pension and Insurance hierarchical………....34
List of Tables
Table 1: Three pillars of institutional theory………...9 Table 2: Characteristics of values associated with the Long vs. Short-term orientation...17 Table 3: Termination Period………..31 Table 4: Statuary employer contributions………..34 Table 5: National Culture Dimensions Values for Thailand and Sweden……….53
CHAPTER 1: Introduction
The introductory chapter consists of Background, Problem statement, Purpose of the study, and Scope of the study.
1.1 Background
Nowadays, many businesses are encountering high competitions with either domestic rivals or foreign rivals among small, medium, and large companies. The entrepreneurs need to seek the opportunities in the international market in order to compensate their loss on sale in domestic country, to find more profits, to reduce risk from the economic instability of their own countries and so on. This approach presents the requirement of enhancing competiveness by doing business in foreign country (Department of Business Development of Thailand, 2004).
Thai Food industry seems to be interesting case study for the reason that Thai food is definitely well-known in the worldwide today. It has been calculated approximately that around the world there are now Thai restaurants in 13,000 locations. Thai expatriates living overseas have been established many Thai restaurants which range from fast-food take-away to up-market restaurants. However there are also foreigners having favorite with Thai food while on holiday in Thailand, so they have been set up many Thai restaurant (Barrow, 2009).
In overall an average of 4,120 baht per day was spent by tourists in Thailand, 17% was spent on food and drink, in the year 2007. Thai food has been promoted around the world by organizing „Thailand Brand‟, the Tourism Authority of Thailand (TAT) have invited cooks, restaurant entrepreneurs and media from the worldwide to come to Thailand to present them to the rich variety of food in the five regions. In addition, Thai cuisine has been promoted through „Amazing Taste of Thailand Festival‟ in the year 2009 (Tourism Authority of Thailand, 2009). So, Thai foods are more well-known in the world today.
There is growing demand around the world in Thai Foods. People in other countries are searching for Thai Foods can have an attractive taste, and so are looking for Thai suppliers providing it. Meanwhile, Thai entrepreneurs in Food industry are looking to start or expand their business in foreign market continually (Contact Network Group, 2010).
According to the popularity of Thai food in the worldwide as we mentioned above, it presents that the entrepreneurs have much possibility to success in doing Thai restaurant business in either Thailand or any country. Thus, in order to relate to international business management, we would like to study the opportunity for opening Thai restaurant in foreign country.
Sweden is one interesting country for doing Thai restaurant business about due to it has a large number of Thai restaurants carrying on in Swedish market. It reflects that Thai Foods is also popular in Sweden. Although in Sweden, the most favorite Asian food is Chinese food, but Thai food is only the second. It originates from many Swede visiting Thailand every year and many Thai live in Sweden, making Thai foods are more associated with Swede (Business Insights Limited, 2003).
Sweden also has open international business environment. It provides smooth business process, good quality of Swedish advisors and skillful professionals. Information required is available in English language through internet. About taxation, international tax consultants attest that, by using relative surveys and analyze, in Europe Sweden is one of the greatest competitive locations for corporate taxation. In addition providing an attractive package, Sweden‟s corporate tax system allows the entrepreneurs access to information easily. The national tax authority is competent and service-intent. Time and cost of the investor are saved through an amount of on-line services (Invest in Sweden Agency, 2009). Therefore, to start a Thai restaurant business in Sweden is easy.
Furthermore, People living and working in Sweden are based on a well-functioning civilization in a resourceful environment. The quality of accommodation, schooling and health care is outstanding. Sweden provides excellent range for equilibrating an occupation with family life, and work with free time. For a long time Sweden has been famous for its good working environment and for initiating reductions of air and water pollution. In the majority parts of the country there is abundance of available vacancy and easy access to open-air activities (Invest in Sweden Agency, 2009). Thus, it is the great chance for Thai entrepreneurs doing business in Sweden to gain the better quality of life.
However, some Thai restaurants conducting in Sweden failed. According to the statement “the single greatest barrier to business success is the one erected by culture” (Edward & Mildred, 1987, p. 54)., We believe that lack of clear understanding about the different cross-cultural factors make these restaurants cannot overcome the barriers causing unsuccessful business. Thus, we recognize that the entrepreneurs have to consider the difference in cross-institutional and cultural factors affecting their businesses when entering to the new international market such as; law and regulation, cost of living, consumers behavior, and so on.
1.2 Problem Statement
The entrepreneurs are now looking for doing their businesses in foreign markets as we mentioned in background in our research. Different people from distinctive institutional and cultural backgrounds come together to take advantage of each other competencies. Sometimes the difference in institution and culture is so significant that even lead to the unsuccessfulness in surviving business. Based on the research by various authors, the main reason for failure in conducting business aboard is due to the incompatibility of the characteristics between foreign
and local country. Keeping in context of the opportunities for doing business in Sweden, we have studied the institutional and cultural differences by using the case study of the Thai restaurant in Sweden, owned by Thai successful entrepreneurs who have survived business in the several years, which eventually helped us in understanding the resemblance of the cross institutional and cultural barriers. The following research question has been contrived to clearly understand this incident and will also impose the foundation for our further research:
“How can Thai entrepreneur overcome the cross-institutional and cultural barriers for successfully running restaurant business in Sweden to beat in Swedish market?”
Based on our research question, successfully running does not mean only overcoming the cross-institutional and cultural barriers but also surviving the restaurant business from the beginning until today.
1.3 Purpose of the study
The main purpose of our research is to understand and explain the cross institutional and cultural barriers in doing Thai restaurant business in Sweden in the context of institutions and cultures embedded in both Thailand and Sweden. The foundation of our research is based on the case study of Thai food restaurants in Sweden which this case study used as an empirical case we have investigate cross cultural management and cross institutional study by successful entrepreneurs. This case study has provided us with the principle to study the institutional and cultural differences between Thailand and Sweden and has certainly helped us in evaluating the cross institutional and cultural barriers for doing the Thai food restaurant business in Sweden. We expect that the outcome of our research will give the useful information and practical recommendations in the future to the Thai entrepreneurs in Thailand, who are interesting in doing business in Sweden in order to seeking new opportunity or avoiding business risk due to the worst politic violence in nearly 20 years in Thailand today, and so on. They can understand the barriers and develop business plan to appropriate to Swedish culture for surviving their business in the Swedish market. Also, Thai government sector, Thailand Board of Investment (BOI) can use beneficial information apply to Thai Food industry.
1.4 Scope of the study
The scope of our research has been limited within the boundary at the factors concerned for doing business in Sweden. The type of business that we have chosen is the Thai restaurant business, which possessed by Thai owner. This has allowed us to exactly measure the institutional and cultural differences between Thailand and Sweden, so providing us with a neutral reflection of the whole culture seemed to be the significant barriers.
To answer the research question, the restaurant businesses as well as the Thai restaurants are focused as they are the research topic. Since this research is aimed to study Swedish and Thai culture, other national cultures than the group are excluded.
To further confine our research, we could have only considered primary information retrieved from Thai restaurants locating in Stockholm, Västerås and Eskiltuna.
1.5 Thesis structure
Our research paper will consist of five main parts as follows:
Introduction
•Motivation of Openning Thai Restaurant in Sweden • Foundation of research through research question • Purpose of the study and our expectation
• Scope of the study of national cultures and case study • Thesis Stucture
Methodoly
•Reserch Approach •Research Design
•Data Collection methods •Quality of research material
Theoretical Framework
•Institutional Theory
•Intercultural Communication •Cross culture Management •Conceptual Framwork
Findings and Analysis
•Overview of Thai restaurant business in Sweden •Interviews Response
•Regulative Pillar in doing Thai restaurant in Sweden •Normative Pillar in doing Thai restaurant in Sweden •Cognitive Pillar in doing Thai restarant in Sweden
Conclusion
•Conclusion •Recommendation •Further Research
CHAPTER 2: Methodology
This section of our dissertation will provide a comprehensive overview of research approach, research design, data collection and quality of research material, which we have employed in our research.
2.1 Research Approach
As there are a variety of ways of management research that can be used to understand the link between the knowledge and action (Fisher, 2007). In this case the type of our research is interpretive research, it has been employed for develop the understanding for additional implications of our case study by taking people‟s perceptions into account. The major reason for doing interpretive research is corresponding to the nature of topic chose. According to Fisher (2007, p. 47), the interpretive research approach stresses an indirect link between understanding and action. This link is influenced by various thinking, values and relationships of people. These factors impact each person in translation of action to understanding. In our case study we also attempted to manifest a link between the Swedish cultures and doing Thai restaurant business, as considered by the people entering those environments. We would like to evaluate people‟s opinions. As each person has his/her own idea, we would like to evaluate such different opinions Thus, we have conducted the research under the interpretive approach.
Our research is qualitative in nature on the foundations of the case study of Thai Restaurants in Sweden. Due to qualitative case study represents a breath and an in-depth understanding of specific circumstances and endows a holistic account of the subject of our research (Fisher, 2007, p. 59), thus we used it. Moreover, it allows data collection process in the research to be guided by the theoretical perspectives (Yin, 1994). It also allows the researchers to employ a combination of methods and be able to effortlessly accommodate both qualitative and quantitative data (Yin, 1994 cited in Fisher, 2007, p. 60). However, we recognized that the major drawback of this case study incurred by researchers is lack of representativeness and generalizabality caused by the small-sample case (Fisher, 2007).
2.2 Research design
As a structured approach basically defined by Fisher (2007) is that it gives a structure guiding the whole research process, especially the data collection process, through using the preliminary theories and concepts. We have chosen this approach because it endows a definite structure to our research. We have started our research through structured approach by defining the relevant concepts and creating conceptual framework in order to eventually help us in constricting research process, and then apply the developed framework to conduct the empirical finding and comparative analysis of our research within collecting material or content that was based on the area of concern. Although the grounded approach would give better outcome of the research for the reasons that it creates the framework from critical literature review with no defining
preliminary theories and concepts, and it also gives broader perspectives and unbiased opinions on our research topic, Nevertheless, it is time-consuming against conducting the research with limitation of time (Fisher 2007, p.122-125).
Therefore, there is another reason for choosing the structured approach. Due to time limitation, we made a decision to do our research following the structured approach which is able to fit our time schedule. Further to the structured approach, we have conducted our research with the deductive method to find the answer responding our research question. The deductive method defined by Fisher (2007) is that a research method which conducts study through conceptual framework that would be capable of answer research question (Fisher, 2007, p.44).
2.3 Data Collection
As we adopted qualitative method, our data collection method is not limited to only primary data. To accomplish our research, our research was conducted by using both primary and secondary data as the source of empirical finding. The details are described as follows:
2.3.1 Primary data
As discussed before qualitative method is used in our study, so the data collected through this method was non-numerical and unquantified. For our research we have conducted several semi-structured interviews to accomplish this. According to Fisher (2007), for a semi-semi-structured interview freedom to answer the questions is given to respondents. We have started by directly asking respondents required about our wants to conduct an interview. After we have scheduled an interview, the respondents have been asked the questions, in that way allowing them to prepare themselves. The reasons why we have chosen interviews are caused by the descriptive nature of our problem and we would like to endow an inclusive overview of the present circumstance. Also interviews are not time-consuming and able to collect data collection quickly. Nevertheless, there is a drawback in conducting interviews which occasionally could not collect sensitive and critical information.
Respondents
For our research, three respondents who are the entrepreneurs of Thai restaurant in Sweden were used for collecting the primary data.
The first respondent is Mrs. Toy Johansson. She is the owner of Thai restaurant named “Smörgåsbutiken”. Her restaurant locates at Tunbytorsganton 7, 72137, Västerås. She sells Thai take away foods including all kinds of sandwich and bread. She has lived at Sweden for 15 years. The second respondent is Mrs. Bee Ekman. She is the owner of Thai restaurants named “Bee‟s Thai Food”. She has five branches locating in different areas. She has two in Stockholm and one in Solna, Bloma and Hammabysgöstad. She has lived at Sweden around 10 years.
The third respondent is Mrs. Punyanuch Chinprahat. She is the owner Thai restaurant named “Lan thong” where located at Eskilstuna. She has lived in Sweden for more than 10 years.
2.3.2 Secondary data
The main part of our research is on the foundation of secondary data collected from various sources. The secondary data, such as laws and legislations, are found mainly from available information in the internet, academic articles and books for analysis the cultural difference between the countries. Secondary data is a data which has already been collected by other researchers or institutions for particular purpose. According to Bryman, he found the assumption of his students is that the data collected in conducting any research should be primary data. He affirmed that all researchers should carefully think about this method prior to primary data collection. Secondary data has many benefits to students to conduct research over the primary data, as it is effortlessly available and assists students save time and costs to access to high quality data. Sometimes it gives the higher standard than data collected by students due to limitation of time and small-sample size. Numerous data sets are highly quality and often used for secondary analysis for the reason that these data have been collected from suitable sample size and geographical dispersion by expert researchers. It also gives opportunity for longitudinal analysis to the study of trends eventually (Bryman 2004, pp.200-206).
2.4 Quality of Research Material
We have extensively searched literature from the related books and articles and then we have founded some material which ultimately assisted us in formulating research problem. This material provides us the entire theoretical concepts essential in conducting research and guides us in data collection process. In choosing a piece of literature, it is important for a researcher to evaluate the quality of literature by considering reference lists, description, supported evidence and publisher‟s status (Fisher, 2007 pp. 92-94). In our case we have started from searching articles and books which were published between the years 1987 -1994 in order to obtain view of problem being researched. The main portion of our research is on the foundation of the research work of Hofstede, who is still famous along with the scholarly figures belong to his field. His research work is consist of a combination of analysis and holds findings totally supported by the evidence gathering from a large scale survey. The well-known articles has been retrieved to support his arguments, therefore our research has been enhanced a quality element.
2.4.1. Construct Validity
Construct validity is the use of the statements and constructions that actually explains and measures the items these are said to do (Fisher, 2007, p. 295-296). The nature of our research is qualitative and based on the semi-structured interview which it is designed to understand the difference of culture influencing in doing Thai restaurant business in Sweden. Vice versa the response from the interviewees is unable to be accounted for a general idea and able to be
affected by many external and internal factors. For this reason we have used a semi-structured interview as a data collection method. It allows the interviewees to take a breath and an in-depth viewpoint while answering the interview questions. We have improved the construct validity by using a reliable source of secondary data to support our arguments.
In addition, interviewing assisted us obtain comprehension about problems and practical solutions to our research problems which could not be done by quantitative method. Our interview questions have been developed on the foundation of research problems and framework for delivering the purpose of research. We have designed interview questions to persuade respondents to feel convenient while answering our questions. We have expected a descriptive answer from respondents, so open-ended questions have been used. Our interview questions have not been used the closed-ended questions. For the reason that different respondents may have different ideas, the semi-structured interview allows the researchers to adjust questions consequently to develop the quality of interview data (Fisher 2004, p.133).
2.4.2. Internal Validity
The internal validity is involved with the validity of the evidence used in writing a conclusion for research, or in the other word it is involved with the data collected reflects on the research problem (Fisher, 2007, p. 296). Fisher asserted that in qualitative research the internal validity cannot be simply identified compare with quantitative research. It needs a combination of research and data collecting. In qualitative research the data could not interpreted with statistical method to beat the internal validity. Conversely, evaluating the internal validity of qualitative data should be employed with different methods of data collection (Fisher, 2007, p. 296-297). In our case, there are two methods of data collection used to strengthen the internal validity in empirical findings of our research, which are semi-structured interview and secondary data analysis. We have conducted interviews from three respondents in different areas in order to collect data from a variety of viewpoints. The secondary data analysis is used to support interview response.
2.4.3. External Validity
External validity is the application of the interpretations or it is the transferability which a researcher has constructed during his research to a set of population, or in the other word it is involved with the generalizations of the study to apply to an entire diverse context (Fisher, 2007, p. 297). In our case we use a very small-sample size, so it does not expresses the opinions from other entrepreneurs entering same industry. Nevertheless, in our research we have attempted to give the reader inclusive information about the research problem, so it help them determine about transferability themselves.
CHAPTER 3: Theoretical Framework
We have probably used the theories named Institutional theory as the main theory which focusing on both formal and informal procedure to shape the social behavior to be unity. And then cross culture management is utilized to explain details in cognitive pillar. The characteristic of each national population including the cultural difference among Swede and Thai have been studied in this report. Those two theories can adapt to help Thai entrepreneur to overcome the cross-institutional and cultural barriers for running the restaurant business in Sweden.
The knowledge on country‟s specific must be gained before deciding to invest in foreign market. Each nation has the varieties of enforcement in both the state law and the acceptability from society. We have adapted the regulative pillar to analyze the legal barriers for construction the restaurant in Sweden. Moreover, the cultural perspectives reflect the national beliefs and values which can be best explained by using normative and cognitive pillar. The cross culture management theory is bought to clarify in social characteristic. To be successful in restaurant business, it is important to know the uniqueness of target market in order to have less in failure at initial step.
3.1 Institutional theory
“Organizations require more than material resources and technical information if they are to survive and thrive in their social environments. They also need social acceptability and credibility” (Scott, 2000, p.237).
Institutional Theory focuses on the social structure which influences on how people behave in the society through the varieties of actions. According to Scott (2008), the three main pillars namely regulative, normative and cognitive pillars construct the institutional block for encompass the behavior to resist the change. The main purpose is for using as the tool to control and constrain human behavior. The using of one pillar to conduct the future behavior seems to be not enough to maintain and sustain in the changeable circumstance, other pillars become significant supporter (Scott, 2008).
The regulative pillar uses the regulatory process as the main prominence to distinguish and
restrict behavior. It is composed of the existing law and national rules that utilize for encouraging, controlling, sanction, and conceiving the social actions to perform in the frame specified (Scott, 2001). It is restricted the rejected behavior by punishment and promoted the desirable behavior by reward system (Clark, 2000). The core ingredients of this pillar consist of sanction, enforcement and expedience responses. All tools create the feeling of fear to constrain the manners (Scott, 2008). However, in some cases, the coercive method still needs the normative and cognitive to support in order to increase sense-making and help in obvious understanding (Suchman & Edelman, 1997).
The normative pillar consists of value and norm. Values are the combination of the preferred and
disable action in the society. Norms refer to the proper way should be done. These are the guide line of the appropriate method to reach the objective. It describes the right as well as responsibilities for the social member without the state‟s enforcement on law and legal punishment. However, it emphasizes the morality and social obligation as the instruments to justice what is right or wrong in the society. The trespasser is unaccepted by the society and received the sense of shame as the result, so this is the conductional way of norm to gain compliance (Scott, 2008). The logical appropriateness in the social are concentrated rather than the using of legitimacy (Clark, 2000). It is used as the guideline on how thing should be done in the satisfactory way.
The cultural-cognitive pillar referred to the cognitive storage of human. The external culture can
be shaped the internal interpretive procedure of the individual. The meaning is given to the symbolic system, such as words, sign and gesture, which are happened from the social interaction, for preservation and transformation generation by generation. Moreover, cultural-cognitive means the social awareness on the act of actors and the sharing of understanding in the society. Variations in meaning were setting in each society as the abstraction. The national recognition reflects to the individual perception as well. The mimic mechanism is the key process in this pillar. The encouragement on the process of imitation is strongly supported by culture (Scott, 2008).
Bellow is three pillars of institutions.
Regulative Normative Cultural-Cognitive
Basic of compliance Expedience Social obligation Taken-for-grantedness Shared understanding Basic of order Regulative rules Binding expectation Constitutive schema
Mechanisms Coercive Normative Mimetic
Logic Instrumentality Appropriateness Orthodoxy
Indicators Rules Laws Sanctions Certification Accreditation Common beliefs Shared logics of action Isomorphism
Affect Fear Guilt/ Innocence Shame/Honor Certainty/Confusion
Basic of legitimacy Legally sanctioned Morally governed Comprehensible Recognizable
Culturally supported Table 1: Three pillars of institutions
Source: Scott, W. Richard. (2008). Institutions and organizations (3rd ed.): Ideas and Interests 3:p.51. California: Sage Publication.
3.2 Intercultural Communication
Communication is the process through which two participants create and share information with one another for reaching mutual understanding. It does not help people transmit meaning only but also create meaning (Rogers & Steinfatt, 1999). “Words do not mean, meanings are in people” (Berlo, 1980 cited in Rogers & Steinfatt, 1999, p. 128).
Communication consists of verbal and nonverbal. Verbal communication concerns communication through language which influences the meanings conveyed by words. Language as a cultural boundary between people is very important in intercultural communication (Rogers & Steinfatt, 1999). “All people are captives of language they speak” (Edward, 1966 cited in Rogers & Steinfatt, 1999, p. 135).
Nonverbal communication is about all types of communication without words. It includes communication behaviors such as signs and symbols. It is present universally and often comes first. It is particularly probable to be trusted. It can lead to misunderstanding, particularly when verbal messages have a missing or limitation. It is particularly essential in intercultural communication (Rogers & Steinfatt, 1999). “[Nonverbal communication is] an elaborate code that is written nowhere, known by none, and understand by all” (Sapir, 1935 cited in Rogers & Steinfatt, 1999, p. 161).
3.3 Cross Culture Management
Investments in the countries where there are the difference in national culture create the prominent opportunity to the firm. On the other hand, business failure can be also easily caused, if they neglect to understand. Culture cannot be ignored even it does not affect directly to the organization. Different in culture and environment reflects people to perform different in the interpretation process of repose in the similar situation (Richard, 1994).
Culture contains of value and belief. First, value refer to “how the thing ought to be”, the learning process usually take place in the childhood. For this reason, it is ingrained, slowly changed and affects directly to the social performance. By the way, how the things are in perception refer to the belief. Belief is used for little to forecast the behavior on the future (Richard, 1994).
Culture involves how people understand their humanity and make sense of it. Cultural differences should be thought as a source of competitive advantage, they should not be thought as an obstacle in international managements (Hoecklin, 1994).
Not understanding cultural differences can be important barriers to the implementation and success of a business project (Lane, Distefano & Maznevski, 1995).
The differences in national culture in the organization have 5 main dimensions namely power distance, individualism versus collectivism, Masculinity and femininity, the avoidance of uncertainty and long vs. short-term orientation (Hofstede, 2001).
3.3.1 Power distance
In situation of large power distance, the role of the subordinate and superior is considered unequal by tall hierarchical system. Subordinate‟s duties about what to do are structured. Organization does not decentralize the authority to the employee. Decision making power is finally at the upper. The wide range in the salary between top management and the bottom usually happen. Boss represents visible sign in the place where this system is popular such as France. The relationship between the higher ups and lower downs intensively consists of emotion (Hofstede, 1991).
Conversely, subordinate and superior consider equal in small power distance circumstances. The flat hierarchical set up for the convenience to divide work. The roles are changeable, positions are fluctuated. Decentralization is most particles. Also, there is small range in the salary system. Superior can be accessible easily. For making the decision, ideas from everybody are brainstorm in order to have the best solution (Hofstede, 1991).
3.3.2 Individualism and Collectivism
Individualism and Collectivism refer to the perspective of people when they distinguish themselves, also including having a relationship with others in society which reflects to the business perception (Hill, 2007).
In collectivist cultures people are probable to have more collectivist cognitive elements when they give importance to social situations; in individualistic culture people are probable to have more personal constructs (Triandis, 1995).
Individualism and Collectivism in workplace
In an individualist culture an employee is expected to perform in accordance with his/her own interests, and work should be ordered in such a way that which this self-interest and the interest of employer concur. Workers are presumed to perform as „Economic men‟, or as people with an association of economic and psychological requirements, but either case as individuals with their own requirements. An employer in a collectivist culture hires a person who belonging to an in-group. The employee will perform in accordance with this in-group‟s interest, which may not all the time concur with their individual interest: self-effacement in the interest of the in-group is under the regular expectations in a society. Frequently the relatives obtain the share of earnings (Hofstede, 1994).
In a collectivist society the hiring process often takes the in-group into account. Normally hiring relatives is taken preference, all of both employer and other persons employed before by the firm. One already recognizes reduces risks in hiring persons from family. The relatives also will be concerned over the dignity of the family and help improve behavior of family member. Family relationships at work in the individualist society are frequently considered as a cause of a conflict of interest and nepotism. Some firms have a regulation which if one employee marries another, one of them has to retire (Hofstede, 1994).
In a collectivist society the workplace itself may become an exclusive circle of people with a common purpose in the emotional sense of the world. This is more the case in some countries than in others, but the feeling which should be this way is often current. In terms of morality, an employer and employee have the relationship between them. It looks like a family relationship with mutual blinding condition of protection in exchange for faithfulness. In this relationship poor performance of an employee is no reason for ejection: one does not fire one‟s child. Nevertheless, an assignment of tasks is based on performance and skills of an employee. Japanese organizations make this pattern of relationship best known. In Japan it applies in restrict sense only to the group of permanent employees which may be less than half of the total work force. The relationship between employer and employee in individualist societies is originally considered as a business transaction, a calculative relationship between purchasers and vendors on a „labor market‟. A better wages offered by another employer or poor performances of the employee are lawful and conventional reasons for eliminating a work relationship (Hofstede, 1994).
Work ethos between an individualist and a collectivist society is different. Best performances with goal seem to be operated by collectivist. Best performances with individuality seem to be operated by the individualist (Early, 1989 cited in Hofstede 1994).
Practically, in collectivist and individualist societies, they have a wide range of types of employer-employee relationships. In collectivist countries there are employers who disrespect the norm in society. Their employees are treated as in-group members but then in terms of employees‟ loyalty are not repaid them. In individualist societies there are employers who have set up strong group union with their employees based on the norm in the collectivist society, involving the balance of loyalty and protection (Hofstede, 1994).
Management of individuals is management in an individualist society. Subordinates can generally be moved around independently. Management of groups is Management in a collectivist society. The range of truly feeling of people emotionally incorporated into work group may be different from one condition to another. In the work group cultural and other in-group distinctions play a function in the integration process and in collectivist culture managers will pay special attention to such factors. People from the same cultural background are putted into one group through good sense, even though consideration of individualistically programmed managers is generally against this perilous. If the work group purposes as an emotional in-group,
the incentives and bonuses should not be given to the individuals, but these should be given to the group (Hofstede, 1994).
Regional upcountry subcultures have occasionally maintained strongly collectivist fundamentals in countries with a dominant individualist middle-class society. In some individualist country the similarity uses to the immigrant worker minorities which form majorities among the labor force in some industries. A cultural conflict is probable between managers and local or minority workers in such cases. This conflict reveals itself in cases of the management‟s indecision to use group incentives (Hofstede, 1994).
In individualist countries management techniques and training packages have nearly absolutely been improved, and in collectivist cultures cultural assumptions which may not hold are the foundations of them. Honest and direct sharing of feelings about other people is the basis in individualist country. In collectivist cultures the sensitivity training methods are inappropriate for utilization, the insensitivity training is used there; routine life is filled with meetings so that no extraordinary groups have to be formed to this reason. People‟s relationships are never found as transactions between individuals: they are not calculative, but they are naturally moral (Hofstede, 1994).
The difference between in-group and out-groups is so important. The norm that one should treat everyone similarly is in individualist societies. This is identified as universalism in sociological language. Special treatment for one customer is wrong and immoral. The contrary is accurate in collectivist. As the difference between our group and other groups is at the very origin of people‟s awareness, special treatment for one‟s friend is usual and moral. This way of thinking sociologically called particularism (Hofstede, 1994).
The consequence thought by particularist is that a relationship of trust in a collectivist society should be set up with another person before doing business. To the collectivist thinking only normal persons are honorable of trust, and through these persons their companions and associates, but not impersonal legitimate existences such as a firm. The inexperienced Western businessman who attempts to force quick business in a collectivist society condemns himself to the character of out-group member and to negative bias (Hofstede, 1994).
3.3.3 Masculinity and femininity
These values concern the difference between male and female in many aspects. Male socialization has a greater emphasis on work goals, achievement motivation and self-reliance, as contrasting to socialization of women emphasizes nurturance and responsibility which involve personal goals including friendly atmosphere, good relationship with boss and other workers (Hoecklin, 1994).
Masculinity and femininity in workplace
The behavior of feminine societies is frequently misjudged by masculine societies. Moreover, in these two societies the matter of aggressive self-assurance against absence of self-assertion emphasizes various ways of handling conflicts. In masculine cultures like the Thailand there is a sense that conflicts should make the resolution by excellent battle: „Let the best man win.‟ In masculine countries the industrial relations scene is marked by such battles. If probable, management attempts to keep away from having contract with labor unions at all, and labor union behavior justifies their antipathy. In feminine cultures like the Sweden there is precedence for resolving conflicts by making negotiation and concession. In institutional frameworks this compromise happens differently by country (Hofstede, 1994).
The workplace in a person‟s life is also the contrast between masculine and feminine societies. The culture is likely more on the way to live for work in a masculine society, whereas the culture would rather be work for living in a feminine society (Hofstede, 1994).
The family in a masculine society associates kids through aggressive self-assurance, aspiration, and rivalry; business in masculine societies has a tension in outcomes, and require to recompense it on the foundation of fairness, i.e., to each person in accordance with performance. The family in a feminine society associates kids through absence of self-assertion and sympathies among members of group, and businesses in such societies are more probable to recompense people on the foundation of parity, i.e., to each person in accordance with need. In masculine societies males are expected to advance in career (Hofstede, 1994).
Many careers in business require not many skills and make a qualitative underemployment. In industrialized masculine and feminine countries this has been realized as a trouble. The solutions tried differ consistent with the variety of culture. They have all been labeled as „humanization of work‟ but what is reflected on a humanized career depends on one‟s form of what it implies to be human. In masculine societies a humanized career should endow more opportunities for innovation, development, and progression. This is the theory of „job enrichment‟ by Frederick Herzberg (1966), US psychologist. A case is making employees on a basic manufacture task also responsible for maintaining their machines. Job enrichment illustrates a „Masculinization, of unskillful and inexperience work which, has a comparatively „feminine‟ job culture (Hofstede, 1994).
In feminine societies a humanized career should endow more opportunities for common assistance and communal links. In the 1970s well-known experiments were conducted by the Swedish automobile and truck producers Saab and Volvo with people‟s association by independent work groups. These illustrate an act of confirming of the public part of the occupation: „Femininization‟. In 1974 six US Detroit automobile members of staffs, four males and two females, were asked to work for three weeks in a group assembly method in the Saab-Scania factory in Södertälje, Sweden. The journalist Robert B. Goldman reported on the
Americans‟ feelings in the research. All four males and one female said they continually had a preference in the US work method. Lynette Stewart selected Detroit. In the Cadillac factory where she works, she can challenge herself, whereas at Saab-Scania she has to think about other people (Hofstede, 1980; 1984). Of course this was accurately the motivation of Swedes for having group assembly method. A Swedish female employee whom Goldmann interviewed referred to the mutual dependence between employees as one of system‟s benefits (Hofstede, 1994).
The different management hero types are created in masculine and feminine societies. In masculine cultures making decision process depends on one manager rather than group leader. Of course the masculine boss is confident, critical, and censorious, while the feminine boss is less perceptible, instinctive rather than critical, and he usually seeks public opinion (Hofstede, 1994).
Masculine in opposition to feminine countries stand out in different types of industries rooted in their cultural attributes. Masculine cultures have a competitive advantage in the development industries like producing, particularly in huge volume: doing things competently, proficiency, and quick. They are high-quality at the manufacture of large equipment and in volume chemistry. Industrially feminine cultures have a relative advantage in services like advising and transportation, in producing in accordance with customer requirement, and in managing in using high yield agriculture and biochemistry. There is an international distribution of labor so, countries are comparatively more doing well in activities which appropriate to their people‟s cultural preferences than in activities which go in opposition to these (Hofstede, 1994).
Even though it might be expected by one, there is no correlation between the masculinity or femininity of a society‟s culture and the division of employment over male and female. A direct correlation between a country‟s position on this measurement and the roles of males and females is presented only in the home. Outwardly, males have traditionally governed, and only newly in tradition have females in any amount been adequately freed from other limitations to be capable to go into the worlds of work and politics as male‟s equivalents (Hofstede, 1994).
Over the past decade the entire industrial societies have shown a steady rising in the participation in work force of women, including professional and management careers. In feminine societies this advancement has not been any quicker rather than masculine societies. The contradiction is that in vision of the original male ascendency in the world of work females have to be inordinately desirous of power to overcome their male rivals for higher statuses. The study of international business management explained that more masculine values are held by female bosses held rather than the males. In masculine societies there is more ambitious than feminine societies. There are weak powers of resistance against females taking part in superior occupations in feminine societies; on the other hand the competitors are less ambitious, so there are few lesser numbers of female taking parts of superior occupations than masculine societies (Hofstede, 1994).
3.3.4 Uncertainty avoidance
In high uncertainty avoidance people have the lack of tolerance for ambiguity and the requirement for formal rules. This measurement evaluates the level that people in a society feel threatened by and attempt to avoid ambiguous circumstances. They may set up more formal rules, reject unusual ideas and behavior, and accept the opportunity of absolute truths and the accomplishment of unchallengeable knowledge (Hoecklin, 1994).
Uncertainty avoidance in workplace
The rights and duties of employers and employees are controlled through many formal and informal rules in uncertainty avoiding societies. The work process is also controlled through many internal rules and many regulations, even though the power distance plays an important role in this case too. Where there are huge power distances, the operation of discretionary power by managers substitutes the need for internal rules. Formal logic is not the foundation of the need for laws and regulations but psycho-logic. In society with a strong uncertainty avoidance culture the need for laws is emotional. People have been programmed since their early childhood in order to sense structured environments comfortably (Hofstede, 1994).
In strong uncertainty avoidance society the emotional need for laws and regulations frequently leads to the form of rules or rule-oriented behaviors which are distinctly irrational, incongruous, or imperfectly (Hofstede, 1994).
Critics from weaker uncertainty avoidance countries do not recognize that even ineffectual laws content people‟s emotional need for formal structure and there rather looks like to be an emotional terror of formal rules. Laws are only set up in case of absolute need, i.e. to decide whether should keep the left or the right in traffic. In such societies people satisfy themselves that many problems can have their solutions with no formal rules (Hofstede, 1994).
Weak uncertainty avoidance also positions for low distress. At the place of work, the distress element of uncertainty avoidance leads to manifest distinctions between strong and weak uncertainty avoidance societies. People in strong uncertainty avoidance societies like to work hard or are busy all the time. By contrast, people in weak uncertainty avoidance societies like to relax but they can work hard if there is necessity for it (Hofstede, 1994).
High uncertainty avoidance countries have more lifetime employment, whereas low uncertainty avoidance countries have more job mobility (Adler, 1986 cited in Hoecklin, 1994).
In strong uncertainty avoidance societies the emotional need for rules can be became a capacity for accuracy and punctuality. This is particularly the case where power distances are comparatively little, so that subordinates behavior is independent with manager. In weak uncertainty avoidance countries accuracy and punctuality do not come spontaneously to most people. Nevertheless, they can be learned if needed in a technical manner (Hofstede, 1994).
Weak uncertainty avoidance guiding to more strategic planning does not essentially raise business effectiveness. There are many more factors leading the economic success of countries and firms (Horovitz, 1980).
Weak uncertainty avoidance countries retain a superior tolerance in the ideas which are out of the ordinary to motivate basic innovation. Conversely, they have a drawback in advancing these basic innovations towards full-scale implementation, as such implementation generally requires a significant intelligence of elaboration and punctuality. In strong uncertainty avoidance countries the latter are often probable to be found (Hofstede, 1994).
3.3.5 Long vs. Short-term Orientation
Long-Term Orientation is the fifth dimension of Hofstede which was founded in an international business management study among students from 23 countries in the worldwide, using a questionnaire designed by Chinese researchers. It can be said to sort out virtue regardless of fact. This dimension attempts to differentiate the thoughts between the East and West. From the original International business management studies, this difference could not be assumed. This is the reason why Hofstede created a Chinese value survey which was distributed across many countries. From these outcomes, and with a comprehension of the influence of the ideas of Confucius on the Eastern societies, long term vs. short term orientation turned into the fifth cultural dimension (Hofstede, 2001).
Below are some characteristics of values associated with the two opposing sides of this dimension
Long-term orientation Short-term orientation
Persistence Personal steadiness and stability
Ordering relationships by status and observing this order
Protecting your „face‟
Thrift Respect or Tradition
Having a sense of shame Reciprocation of greeting, favors and gifts Table 2: Characteristics of values associated with Characteristics of values associated with Long vs. Short-term Orientation
SWEDISH MARKET
Cross Institutional and Cultural Barriers in doing Thai restaurant business
3.4: Conceptual Framework
Figure 1: Conceptual Framework
For our research, we have created our conceptual framework based on existing knowledge and theoretical perspectives from critical literature review. The conceptual framework has been developed to explain cross-cultural barriers that might occur in doing Thai restaurant business in Sweden, including the solutions that could overcome these cross-cultural barriers.
Accordingly, we have used data from both primary and secondary sources to test the validity and to support the conceptual framework in answering the research problem.
CHAPTER 4: Findings and Analysis
This section will give the exhaustive explanation of information collect which we have gathered from both primary and secondary data. Our major purpose was to collect as much information as possible that could easily help us in estimating our research on business backgrounds. We shall start this part by presenting the general information about a restaurant business in Thailand and doing business in Sweden then will continue by presenting the interview information about doing Thai restaurants in Sweden, therefore providing the reader an in-depth view of our research. Furthermore, in this section, we will analyze the findings mentioned under the clear understanding of our theoretical framework with the purpose of getting a thorough comprehension of our research problem and other implications related with it.
Institutional theory Cross Culture Management Regulative Normative Cognitive
4.1Doing Thai restaurants in Sweden Overview
4.1.1 Thai restaurant business overviewVariety type of restaurants can be found easily in Thailand. Some restaurants opened 24 hours located in each downtown. The mostly found is street restaurants which is very popular and unique. Street-side restaurant appears everywhere in Thailand, especially in Bangkok, from the day till the night. Food stall and a number of tables are placed on the sidewalk. Noodle soups, Seafood and Thai fast food are popular dishes. In the evening, many drinks are served including beer and whisky. The price is cheaper due to the lower in the location‟s cost. The other types of restaurant are indoor air condition, royal Thai cooking, Thai fusion cuisine and artistic restaurant (Bangkok, Food city in Thailand, 2008).
4.1.2 Swedish market overview
Sweden is an interesting country in the eyes of foreign investors nowadays. Due to the competitive business cost, high labor quality, and high standard of infrastructures, many businessmen decide to start their business in Swedish market. The lowest corporate income tax comparing to other EU countries is a good implement to attract the foreigner as well. The number tends to increase in every year. Sweden is ranked in 10th out of 43 countries in Europe and ranked in 21st out of 133 countries around the world where there are the most freedom in economic. (2010 index of economic freedom ranked by the Heritage Foundation Wall Street Journal) With an open attitude toward foreign investor, this score can obtain not difficultly.
4.2 Interview Response
First respondent, Mrs. Johansson, the owner of Thai restaurant in Västerås
The better quality of life attracts her to live in Sweden. As opening the small business such as take away food restaurant seems to be good option and easy thing to do and also does not require many employees for making the tables, serving food and washing tons of dishes. So, she decided to open small Thai restaurant. At that time, she had a confidence to be successful in this business because she knew the way to cook.
Before opening the restaurant, due to English is not the main language of Sweden so, she and her daughter took a Swedish course for 1 month in order to communicate effectively with Swedes. She could learn Swedish quickly because of the help from her Swedish husband and also the experience from watching television and communicating with Swedes. Therefore, Swedish is not obstacle for her anymore.
At the initial stage, she searched many restaurants for rent and for sale from many sources such as internet and local newspaper. Location was considered from the number of companies nearby and the density of population around. Finally, she took over the bread stall located near the big company. The rent contract has been signed in long term for 9 months in each period. Rent has to be paid monthly according to the agreement.
About cooking European foods, the ingredients were easily founded and bought in ready to use products such as ham, butter, cheese, cucumber, tomato, herring and salmon. The flavor is added in cooking in order to make taste different. For Thai foods, they are added to the menu later. Thai foods are popular in lunch period. There are lots of Thai coconut boil curry soup varied day by day such as red and green curry, dry curry, spicy Muslim curry and etc. All foods are cooked in boiling process because her restaurant does not build the tap for throwing the wasted oil, so she cannot cook food from deep fry on the ground of regulation for restaurant in Sweden.
The inside decoration of restaurant is clean and tidy. There is only the food counter and some tables provided outside the restaurant. When her customers finish eating, they usually bring their trashes to the bin provided. She said that Swedes were neat more than Thais.
When talking about taste adaptation, even though she comes from the northeast of Thailand where taste of food is more spicy than other parts, she still maintains the uniqueness of Thai taste which emphasizes full flavor but not too much spicy as she likes. She does not adapt the taste to be sweeter to appropriate to Swedes because some customers told her that they used to eat Thai food in Thailand and they prefer that flavor more than some restaurants where Thai food is cooked too sweet. So, there is no problem about taste adaptation.
About laws and regulations, in Sweden a restaurant owner is enforced to learn Food Inspection which is the serious issue. After the course had finished, the authority would grant the paper and require firm to public on the seeable wall in restaurant. The course provides the knowledge about the sanitary and hygienic process of cooking and preparing food. Vegetable and meat product must be separated when preparing including the storage of food. Frozen meat should be stored in different refrigerators. In addition, table, knife and chopping block are distinct. The authorities come to inspect regularly without notice in advance. They observe the way that restaurant runs in the cooking process. Also, the priority factor for inspection is cleanliness. Abzug, table, toilet and all utensils are inspected and bring some food‟s sample for inspecting at laboratory. They use the tape and stick to the restaurant‟s furniture. Then they bring that tape back to their laboratory to search for bacteria causing disease. Each time 6,700 SEK is paid for this inspection fee annually, and in case of fail in the result, restaurant has to pay more than 3,000 SEK for the next inspection. The chance to improve is given until the standard reached. She also had faced with this problem last year. Anyway, this problem was solved later. A claim for diarrhea causes closing down a business. If the result is proved, a restaurant has right to re-opened.
Opening time of her restaurant is from 6 am to 2.30 pm for Monday to Thursday and from 6 am to 1.30 pm for only Friday. These times follow the company nearby‟s opening times. The reason why the Swedish companies usually set the working time on Friday less than other weekdays because of their tradition which Swedes generally relaxes and spends time with their families on weekend.
Moreover, holiday of restaurant also followed the company nearby‟s day off. It is not the same as the restaurant in the city which is opened on weekend. Most Thai restaurants in Sweden follow the Lutheran‟s holiday rather than Buddhism day off. When there is an important religion day, she usually practices her religion activity at her home before going to work. Difference in Religion beliefs is not the problem in working area.
Working hours in Sweden normally is 8 hours per day, working over time‟s wages is upon the agreement. Thai employees often ask for the overtime work rather than Swedish employees. The increasing of salary evaluated from the employee‟s performance. In addition, working in her restaurant is systematically. She sets the times for preparing food which are at 8 am for starting to do salad, at 9.30 am for cooking meal and so on. Customers usually arrive at the restaurant around 6 am – 8 am to buy their breakfasts. Most customers usually come at 8 am and bread is mostly sold in the morning. At 11.00 am, customers initially come to buy their lunches such as Thai meal and salad.
Other restaurants generally use the difference in prices in different time as the strategy to attract customers in rush hour especially in lunch time. When one restaurant lowers the price, the others usually reduce theirs in order to compete with the rivals in the market. However, she does not use this strategy. The large portion given and the quality guarantee are used as the point of sell. Even though the price is more expensive comparing to other restaurants around, customers still have their loyalty to buy her food.
Tipping is not the mandatory and tradition. However, sometimes customers give their changes as tip. Tipping depends on the personal preference. Moreover, she referred to the gift given tradition that Swedes do not give and receive gift from the others except on the important occasion such as Easter and Christmas.
Eating habit of Swedes is not the same as Thais. Swedish Meal is served orderly which started from appetizer, main course and end up with the desert and coffee but in Thai way every dish is served together on the middle of table. Swedes does not use spoon as Thais, they use only fork and knife.
Meatball and potato are the national food of Sweden. An open sandwich called “Smörgåsbord” is popular, particularly in Swede‟s breakfast and lunch but Thai food is popular in lunch and dinner time. Swedes prefer to eat bread more than rice. Anyways, restaurant provides potato, pasta and rice as the choices for customers.
