This document summarizes research on long-term versus short-term orientation in different cultures. It discusses the Chinese Value Survey conducted in 1985 that identified a dimension correlated with economic growth, which Geert Hofstede termed long-term orientation. Countries with long-term orientation value perseverance and thrift, while short-term oriented countries value tradition and social obligations. The World Values Survey extended these findings to 93 countries, finding that East Asian nations like China and Japan score highest in long-term orientation and tend to outperform economically, while Western nations like the U.S. and U.K. score lower. Cultures' differing values on this dimension can significantly impact business practices and economic development.

1. Master of Health Information Management
Course: Team & Intercultural Management
**Long-Term Orientation**
Presented by:
MUHINDI, Bonaventura; MASHALLA, Judy & AMSI, Silvatory
Facilitator: Prof. Dr. Thomas Bayer (HNU)
Date: 19th November 2015
Venue: Neu-Ulm University of Applied Sciences

2. Presentation layout
• Introduction
• Values and national values in a
community(Cultural Dimension)
• Chinese Value Survey (CVS) and analysis
• National values and teaching of Confucius
• Long term-short term orientation
• World Value survey

3. PART ONE

4. 1.0 Introduction
• Chapter 4: Yesterday, Now or Later?
- is concerned with different value surveys
conducted to people from different parts of
the world in relation to long-term/short term
dimension.
- it reflects the extent to which members of
nationalities are oriented toward different
time periods, the past, the present (now) as
well as the future (future).

5. The Chinese Value Survey (CVS)
• In 1985, Micheal Bond and colleagues
conducted a study among students in 23
countries, using a survey instrument
developed by Chinese employees and
managers.[1].
• Bond’s analysis produced 4 dimensions; 3 of
which were significantly correlated with one
of the Geert Hofstede’s IBM dimensions.
• In addition, the 4th dimension, strongly
correlated with economic growth (and so was
used to predict countries economic growth).

6. The 4th CVS dimension…
• On one side
1) Persistence
2) Thrift
3) Ordering
relationships by
status and
observing this order
4) Having a sense of
shame
• On the opposite side
1) Reciprocation of
greetings, favors and
gifts
2) Respect for tradition
3) Protecting one’s “face”
4) Personal steadiness
and stability

7. • From 8 values found related to CVS
dimensions, values 1-4 (on one side) directly
resonate with Confucius’s principle.
• Values 5-8 (on the opposite side), include the
importance of “reciprocation of greetings,
favors and gifts” etc., unfortunately these were
not related with Confucius.
• However, “respect for tradition” and “personal
steadiness and stability” were not Chinese
values.

8. PART TWO

9. Long-term/short-term orientation
• Geert Hofstede found the 4th dimension in
CVS, related to economic growth and so
added it in his 1991 survey.
• He termed it a fifth dimension to his model or
long-term orientation (LTO).

10. Long-term orientation (LTO)
• Long-time orientation stands for societies of
pragmatic values orientated towards future
rewards. Which include:-
1. Perseverance (persistence)
2. Thrift (saving)
3. Adapting to changing circumstances

11. Short-term orientation (STO)
• Relates to values orientated towards the past
and present, such as:-
1. National pride
2. Respect for tradition
3. Preservation of face
4. Fulfilling social obligation

12. Introduction to World Values Survey
• In 2010, the survey was extended to 93
countries by Micheal Minkov who used the
recent World Values Survey.
• Data from the survey correlated with L/STO of
societies. [5]

13. WVS interpretation
• On the LTO side, it was found that:-
1. Good and evil are relative – they can’t
change overtime
2. Norms depend on the existing situation
3. A superior person is somebody who knows
to adapt to the circumstances
4. People are humble about themselves
5. Two opposing truths they may be
integrates to something new

14. WVS interpretation contd…
• On the STO side it was found that:-
1. Good and evil are absolute and always the
same
2. Fixed norms always apply whatever the
circumstance
3. A superior person is someone who is always
the same
4. People seek positive information about them
5. There’s always a contradiction between two
opposing concept

15. PART THREE

16. LTO score index in WVS
• WVS indexes range from 0-100, where as 0
stands for STO and 100 for LTO
• Data were available for 93 countries, globally.
• Among the selected 7 were in low side, and 7
where in the high side.

17. LTO score index in WVS contd….
LTO
• Japan
• China
• Germany
• Russia
• Netherlands
• Italy
• Sweden
• France
STO
• Britain
• India
• Israel
• USA
• Mexico
• Australia
• Nigeria & other African countries
• Egypt & other Islamic countries

18. LTO index relation with societal factors
• Example of societal factors which correlate
with LTO and can be measures elsewhere
include:-
1. Performance of secondary school
mathematics
2. Saving and investment

19. LTO societies
• Secondary school students perform higher in
mathematics but tend to rate their results
lower
• Tend to save money and funds are available
for investment
• Companies seek market shares and long-term
profits
• Investors prefer family business and real
estates
• Economic growth goes faster

20. STO societies
• Secondary school students perform relatively
poor in mathematics but overrate their results
• Smaller saving practice and little money for
investment
• Companies report quarterly results in that
particular period
• Preference is for shares and mutual funds
• Economic growth goes slow

21. Conclusion
• In spite of enormous technological changes
with introduction of global information
systems which do affect private habits and
thereby affect business practice; they way
they do so tend to vary between societies
according to pre-established values
• Same technology might not be used in the
same way

22. Conclusion contd….
• LTO plays an important role in the economic
development of poor countries
• Poor countries with LTO develop
economically faster than poor countries with
STO
• It can be concluded that cultures have
different learned values and norms which can
determine actions and play a significant role
in influencing business outcomes.

23. References
1. Hofstede's cultural dimensions theory abstracted from
https://en.wikipedia.org/wiki/Hofstede%27s_cultural_dimen
sions_theory on 18th Nov. 2015
2. Minkov, Michael (2007). What makes us different and
similar: A new interpretation of the World Values Survey
and other cross-cultural data. Sofia, Bulgaria: Klasika y Stil
Publishing House
3. Hofstede, Geert. "Dimensionalizing Cultures: The Hofstede
Model in Context". ScholarWorks@GVSU. Online Readings
in Psychology and Culture. Retrieved6 September 2015.
4. http://study.com/academy/lesson/long-term-orientation-vs-
short-term-orientation-hofstedes-definition-lesson-
quiz.html
5. 10 minutes with Geert Hofstede on Long versus Short Term
Orientation 01032015 downloaded on 17th November
2015 from
https://www.youtube.com/watch?v=H8ygYIGsIQ4