International Business_Chapter 3_Differences in Culture_Charles W. Hill
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International Business_Chapter 3_Differences in Culture_Charles W. Hill

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  • 1. Chapter 3 Differences in Culture
  • 2. 3-2 What is culture?  “A system of values and norms that are shared among a group of people and that when taken together constitute a design for living.”  McGraw-Hill/Irwin International Business, 5/e Hofstede, Namenwirth and Weber © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
  • 3. 3-3 Different components of culture  Values and Norms  Folkways and mores McGraw-Hill/Irwin International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
  • 4. 3-4 Values and norms  Values: Abstract ideas/assumptions about what a group believes to be good, right and desirable  Norms: social rules and guidelines that prescribe appropriate behavior in particular situations McGraw-Hill/Irwin International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
  • 5. 3-5 Folkways and mores   Folkways: Routine conventions of everyday life.  Little moral significance  Generally, social conventions such as dress codes, social manners, and neighborly behavior Mores: Norms central to the functioning of society and its social life  Greater significance than folkways  Violation can bring serious retribution  Theft, adultery, incest and cannibalism McGraw-Hill/Irwin International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
  • 6. 3-6 Culture, society and nation states   Society is a group of people who share a common culture No one to one correspondence between society and a nation state   Nation states are political creations Many cultures can co-exist within a nation state McGraw-Hill/Irwin International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
  • 7. 3-7 Determinants of culture Fig: 3.1       Social structure Religion Language Education Economic philosophy Political philosophy McGraw-Hill/Irwin International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
  • 8. 3-8 Social structure  Two dimensions    The extent to which society is group or individually oriented Degree of stratification into castes or classes  Social mobility  Significance to business Other influences   Political philosophy Economic philosophy McGraw-Hill/Irwin International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
  • 9. 3-9 Religious and ethical systems      Christianity  Economic implications Hinduism  Economic implications Islam  Economic implications Buddhism  Economic implications Confucianism  Economic implications McGraw-Hill/Irwin International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
  • 10. 3-10 Language   Fig: 3.2 Spoken  Verbal cues  Language structures perception of world Unspoken  Body language  Personal space McGraw-Hill/Irwin International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
  • 11. 3-11 Education  Education can be a source of competitive advantage  Example  India  Malaysia  Singapore McGraw-Hill/Irwin International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
  • 12. 3-12 Culture and the workplace  Study on the relationship between culture and the workplace by Geert Hofstede 1967-73   40 countries 100,000 individuals McGraw-Hill/Irwin International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
  • 13. 3-13 Hofstede’s cultural dimensions  Four dimensions of culture     Power distance Individualism versus collectivism Uncertainty avoidance Masculinity versus femininity McGraw-Hill/Irwin International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
  • 14. 3-14 Power distance  Cultures are ranked high or low on this dimensions based on the particular society’s ability to deal with inequalities McGraw-Hill/Irwin International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
  • 15. 3-15 Individualism versus collectivism   This dimension focuses on the relationship between the individual and his/her fellows within a culture  Individualistic societies:  loose ties  individual achievement and freedom highly valued Collectivist societies tight ties  tend to be more relationship oriented McGraw-Hill/Irwin International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
  • 16. 3-16 Uncertainty avoidance  This dimension measures the extent to which a culture socializes its members into accepting ambiguous situations and tolerating uncertainty McGraw-Hill/Irwin International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
  • 17. 3-17 Masculinity versus femininity  This dimension looks at the relationship between gender and work roles McGraw-Hill/Irwin International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
  • 18. 3-18 Work related values for twenty countries McGraw-Hill/Irwin International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
  • 19. 3-19 Problems with Hofstede’s findings    Assumes one-to-one relationship between culture and the nation-state His research may have been culturally bound. Survey respondents were from a single industry (computer) and a single company (IBM) McGraw-Hill/Irwin International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
  • 20. 3-20 Cultural change     Culture is not a constant; it evolves over time Since 1960s American values toward the role of women are changing. Japan moves toward greater individualism in the workplace Effects of globalization McGraw-Hill/Irwin International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
  • 21. 3-21 Managerial implications    Cross cultural literacy Culture and competitive advantage Culture and business ethics McGraw-Hill/Irwin International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.