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Cultural Environments  Facing International Business
What is culture? ,[object Object],[object Object],[object Object]
What is culture? ,[object Object],[object Object],[object Object],[object Object]
Correlates of culture ,[object Object],[object Object],[object Object],[object Object],[object Object]
Dimensions of national culture ,[object Object],[object Object],[object Object]
The silent language of culture ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],High context and low context cultures
[object Object],[object Object],[object Object],[object Object]
Low-context cultures High-context culture Japanese Arab Greek Spanish Italian English French American Scandinavian German German-Swiss
COUNTRIES AND REGIONS USED IN HOFSTEDE'S RESEARCH ARA Arab countries  JAM Jamaica (Egypt, Lebanon, Libya, Kuwait,  JPN Japan Iraq, Saudi Arabia, U.A.E.)  KOR South Korea ARG Argentina MAL Malaysia AUL Australia MEX Mexico AUT Austria NET Netherlands BEL Belgium NOR Norway BRA Brazil NZL New Zealand CAN Canada PAK  Pakistan CHL Chile PAN Panama COL  Colombia PER Peru  COS Costa Rica PHI Philippines DEN  Denmark POR Portugal EAF East Africa SAF South Africa (Kenya, Ethiopia, Zambia) SAL Salvador EQA Equador SIN Singapore FIN Finland SPA Spain FRA France SWE Sweden GBR Great Britain SWI Switzerland GER Germany TAI Taiwan GRE Greece THA Thailand GUA Guatemala TUR Turkey HOK Hong Kong URU Uruguay IDO Indonesia USA United States IND India VEN Venezuela IRA Iran WAF West Africa IRE Ireland (Nigeria, Ghana, Sierra Leone) ISR Israel  YUG Yugoslavia ITA Italy ใ€€ ใ€€ Source: Geert Hofstede, "The Cultural Relativity of Organizational Practices and Theories." Journal of International Business Studies, Fall 1983, P. 79 Used with permission.
Hofstede dimensions of cultures ,[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
*  CHI JAP * Source: Hofstede, G.  organizational dynamics  1980 Summer. THE POSITION OF THE 50 COUNTRIES ON THE POWER DISTANCE INDIVIDUALISM SCALES +  ๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€ +  ๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€ +  ๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€ +  ๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€ +  ๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€ +  ๏ผŽใ€€๏ผŽใ€€๏ผŽ + ใ€€๏ผŽใ€€๏ผŽ 11  28  44  61  77  94  104 ,[object Object],[object Object],Individualism Index Power Distance Index (4) Small Power Distance/ Collectivist 12 ๏ผŽ 14 ๏ผŽ 16 ๏ผŽ 18 ๏ผŽ 20 ๏ผŽ 22 ๏ผŽ 24 ๏ผŽ 26 ๏ผŽ 28 ๏ผŽ 30 ๏ผŽ 32 ๏ผŽ 34 ๏ผŽ 36 ๏ผŽ 38 ๏ผŽ 40 ๏ผŽ 42 ๏ผŽ 44 ๏ผŽ 46 ๏ผŽ 48 ๏ผŽ 50 ๏ผŽ 53 ๏ผŽ 55 ๏ผŽ 57 ๏ผŽ 59 ๏ผŽ 61 ๏ผŽ 63 ๏ผŽ 65 ๏ผŽ 67 ๏ผŽ 69 ๏ผŽ 71 ๏ผŽ 73 ๏ผŽ 75 ๏ผŽ 77 ๏ผŽ 79 ๏ผŽ 81 ๏ผŽ 83 ๏ผŽ 85 ๏ผŽ 87 ๏ผŽ 89 ๏ผŽ 91 ๏ผŽ *AUT FIN * NOR * *SWI SWE* DEN  * AUL* USA * *NZL CAN * NET* SPA* FRA* BEL * ITA * *SAF (2) Large Power Distance/  Individualist GRE* *IRA *BRA ARG * TUR  *  PHI  * MEX  * *YUG POR  * *  HOK * THA * SIN *PAK TAI* * COL  * VEN IND * CHL  * *GER INA * IRE* GBR* *ISR LUX* MAL   * PER * POL  * MOR  * * SKA * URU * VIE RUS  * (1) Large Power Distance/  Collectivist (3) Small Power Distance/  Individualist
THE POSITION OF THE 50 COUNTRIES ON UNCERTAINTY AVOIDANCE AND MASCULINITY SCALES * CHI *RUS *FRA Source: Hofstede, G.  organizational dynamics  1980 Summer. +  ๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€ +  ๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€ +  ๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€ +  ๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€ +  ๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€ + 5  23  41  59  77  95 5  23  41  59  77  95 +  ๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€ +  ๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€ +  ๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€ +  ๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€ +  ๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€ + Uncertainty Avoidance Index Masculinity Index (4) Weak Uncertainty  Avoidance/Feminine *AUT FIN * NOR * * GER *SWE *DEN GBR * USA* *NZL *CAN  * NET (3) Strong Uncertainty Avoidance/Feminine SPA*   *BEL * ITA *SAF *GRE *IRA BRA* * ARG JAP * TUR * * PHI  * MEX *YUG POR  * HOK * THA * *  SIN *PAK TAI * * COL  * VEN IND * 8 ๏ผŽ 11 ๏ผŽ 13 ๏ผŽ 19 ๏ผŽ 21 ๏ผŽ 24 ๏ผŽ 27 ๏ผŽ 29 ๏ผŽ 32 ๏ผŽ 35 ๏ผŽ 37 ๏ผŽ 40 ๏ผŽ 43 ๏ผŽ 45 ๏ผŽ 48 ๏ผŽ 51 ๏ผŽ 53 ๏ผŽ 56 ๏ผŽ 59 ๏ผŽ 61 ๏ผŽ 64 ๏ผŽ 67 ๏ผŽ 69 ๏ผŽ 72 ๏ผŽ 75 ๏ผŽ 77 ๏ผŽ 80 ๏ผŽ 83 ๏ผŽ 85 ๏ผŽ 88 ๏ผŽ 91 ๏ผŽ 93 ๏ผŽ 96 ๏ผŽ 99 ๏ผŽ 101 ๏ผŽ 104 ๏ผŽ 107 ๏ผŽ 109 ๏ผŽ 112 ๏ผŽ (2) Strong Uncertainty Avoidance/Masculine (1) Weak Uncertainty  Avoidance/Masculine AUL* * SWI ISR * *IRE CHL * * PER *URU SKA * * VIE INA * LUX * MAL * MOR * POL *
Country scores on Confucian dynamism (long-term orientation ) Score rank Country or region LTO score 1 China 118 2 Hong Kong 96 3 Taiwan 87 4 Japan 80 5 South Korea 75 6 Brazil 65 7 India 61 8 Thailand 56 9 Singapore 48 10 Netherlands 44 11 Bangladesh 40 12 Sweden 33 13 Poland 32 14 Germany 31 15 Australia 31 16 New Zealand 30 17 United States 29 18 Great Britain 25 19 Zimbabwe 25 20 Canada 23 21 Philippines 19 22 Nigeria 16 23 Pakistan 0 Source: Chinese Cultural Connection.  "Chinese values and the search for Culture-free dimensions of culture,  Journal of Cross-Cultural Psychology , 18. 143-164.
Competitive Countries Have an Eye on the Future Future Orientation ๏ผˆ cultural support for delayed gratification, planning, and investment ๏ผ‰ Source for competitive rankings: the World Economic Forum. 1998-2005 Competitiveness โ–  Singapore โ–  Switzerland โ–  Netherlands โ–  Austria โ–  Malaysia โ–  South Africa โ–  Philippines โ–  India โ–  Indonesia โ–  Brazil โ–  Venezuela โ–  Russia Argentina  โ–  โ–  Poland โ–  Colombia Turkey โ–  โ–  Hungary โ–  Italy โ–  Greece โ–  China โ–  Mexico โ–  Slovenia โ–  Taiwan Hong Kong  โ–  UK  โ–  Australia โ–  โ–  Japan โ–  Denmark โ–  United States โ–  Finland Sweden โ–  Canada โ–  โ–  Ireland โ–  Germany โ–  Israel โ–  Portugal โ–  Spain โ–  Thailand France  โ–  New Zealand โ–  โ–  Korea
Criticisms of Hofstede
Other Layers of of culture ,[object Object],[object Object],[object Object],[object Object]
Culture in management settings Interactions between firms (e.g., business negotiation)
Culture in management settings (conti.) ,[object Object],Interaction within firms ,[object Object],[object Object],[object Object]
People of different cultures often perceive and solve problems differently: ,[object Object],[object Object],[object Object]
Thank You!

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The cutural environment facing business

  • 1. Cultural Environments Facing International Business
  • 2.
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8. Low-context cultures High-context culture Japanese Arab Greek Spanish Italian English French American Scandinavian German German-Swiss
  • 9. COUNTRIES AND REGIONS USED IN HOFSTEDE'S RESEARCH ARA Arab countries JAM Jamaica (Egypt, Lebanon, Libya, Kuwait, JPN Japan Iraq, Saudi Arabia, U.A.E.) KOR South Korea ARG Argentina MAL Malaysia AUL Australia MEX Mexico AUT Austria NET Netherlands BEL Belgium NOR Norway BRA Brazil NZL New Zealand CAN Canada PAK Pakistan CHL Chile PAN Panama COL Colombia PER Peru COS Costa Rica PHI Philippines DEN Denmark POR Portugal EAF East Africa SAF South Africa (Kenya, Ethiopia, Zambia) SAL Salvador EQA Equador SIN Singapore FIN Finland SPA Spain FRA France SWE Sweden GBR Great Britain SWI Switzerland GER Germany TAI Taiwan GRE Greece THA Thailand GUA Guatemala TUR Turkey HOK Hong Kong URU Uruguay IDO Indonesia USA United States IND India VEN Venezuela IRA Iran WAF West Africa IRE Ireland (Nigeria, Ghana, Sierra Leone) ISR Israel YUG Yugoslavia ITA Italy ใ€€ ใ€€ Source: Geert Hofstede, "The Cultural Relativity of Organizational Practices and Theories." Journal of International Business Studies, Fall 1983, P. 79 Used with permission.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14.
  • 15. THE POSITION OF THE 50 COUNTRIES ON UNCERTAINTY AVOIDANCE AND MASCULINITY SCALES * CHI *RUS *FRA Source: Hofstede, G. organizational dynamics 1980 Summer. + ๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€ + ๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€ + ๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€ + ๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€ + ๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€ + 5 23 41 59 77 95 5 23 41 59 77 95 + ๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€ + ๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€ + ๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€ + ๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€ + ๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€๏ผŽใ€€ + Uncertainty Avoidance Index Masculinity Index (4) Weak Uncertainty Avoidance/Feminine *AUT FIN * NOR * * GER *SWE *DEN GBR * USA* *NZL *CAN * NET (3) Strong Uncertainty Avoidance/Feminine SPA* *BEL * ITA *SAF *GRE *IRA BRA* * ARG JAP * TUR * * PHI * MEX *YUG POR * HOK * THA * * SIN *PAK TAI * * COL * VEN IND * 8 ๏ผŽ 11 ๏ผŽ 13 ๏ผŽ 19 ๏ผŽ 21 ๏ผŽ 24 ๏ผŽ 27 ๏ผŽ 29 ๏ผŽ 32 ๏ผŽ 35 ๏ผŽ 37 ๏ผŽ 40 ๏ผŽ 43 ๏ผŽ 45 ๏ผŽ 48 ๏ผŽ 51 ๏ผŽ 53 ๏ผŽ 56 ๏ผŽ 59 ๏ผŽ 61 ๏ผŽ 64 ๏ผŽ 67 ๏ผŽ 69 ๏ผŽ 72 ๏ผŽ 75 ๏ผŽ 77 ๏ผŽ 80 ๏ผŽ 83 ๏ผŽ 85 ๏ผŽ 88 ๏ผŽ 91 ๏ผŽ 93 ๏ผŽ 96 ๏ผŽ 99 ๏ผŽ 101 ๏ผŽ 104 ๏ผŽ 107 ๏ผŽ 109 ๏ผŽ 112 ๏ผŽ (2) Strong Uncertainty Avoidance/Masculine (1) Weak Uncertainty Avoidance/Masculine AUL* * SWI ISR * *IRE CHL * * PER *URU SKA * * VIE INA * LUX * MAL * MOR * POL *
  • 16. Country scores on Confucian dynamism (long-term orientation ) Score rank Country or region LTO score 1 China 118 2 Hong Kong 96 3 Taiwan 87 4 Japan 80 5 South Korea 75 6 Brazil 65 7 India 61 8 Thailand 56 9 Singapore 48 10 Netherlands 44 11 Bangladesh 40 12 Sweden 33 13 Poland 32 14 Germany 31 15 Australia 31 16 New Zealand 30 17 United States 29 18 Great Britain 25 19 Zimbabwe 25 20 Canada 23 21 Philippines 19 22 Nigeria 16 23 Pakistan 0 Source: Chinese Cultural Connection. "Chinese values and the search for Culture-free dimensions of culture, Journal of Cross-Cultural Psychology , 18. 143-164.
  • 17. Competitive Countries Have an Eye on the Future Future Orientation ๏ผˆ cultural support for delayed gratification, planning, and investment ๏ผ‰ Source for competitive rankings: the World Economic Forum. 1998-2005 Competitiveness โ–  Singapore โ–  Switzerland โ–  Netherlands โ–  Austria โ–  Malaysia โ–  South Africa โ–  Philippines โ–  India โ–  Indonesia โ–  Brazil โ–  Venezuela โ–  Russia Argentina โ–  โ–  Poland โ–  Colombia Turkey โ–  โ–  Hungary โ–  Italy โ–  Greece โ–  China โ–  Mexico โ–  Slovenia โ–  Taiwan Hong Kong โ–  UK โ–  Australia โ–  โ–  Japan โ–  Denmark โ–  United States โ–  Finland Sweden โ–  Canada โ–  โ–  Ireland โ–  Germany โ–  Israel โ–  Portugal โ–  Spain โ–  Thailand France โ–  New Zealand โ–  โ–  Korea
  • 19.
  • 20. Culture in management settings Interactions between firms (e.g., business negotiation)
  • 21.
  • 22.