Appropriate management of the innovation process. Test cultural compatibility by providing services to foreign firms that are operating in your country. The single most common reason for export failure is inattention to cultural factors, a maxim frequently repeated in international business literature. People choose service providers and strategic business partners with whom they feel at ease, and this comfort level is dictated initially by cultural factors. In over half the process innovations reported to ITC by services firms from developing and transition economies, cultural adaptation was cited as important .
National cultures are numerous, and subcultures are even more so.
Increased travel has resulted in a large group of people socialized in more than one culture, and widespread television access gives exposure to different cultural values. To be sensitive to these factors, it is useful to have a structure for understanding cultural differences. Below are ten variables which affect cultures and subcultures, and can serve as a framework for reflection. The seeds of innovation need fertile terrain in order to grow. Innovation strategy is most likely to succeed when it complements service excellence, quality assurance, customization and bench-marking strategies.