International Business_Chapter 3_Differences in Culture_Charles W. Hill
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Transcript of International Business_Chapter 3_Differences in Culture_Charles W. Hill
Chapter
Differences in
Culture
3
McGraw-Hill/Irwin
International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
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.” Hofstede, Namenwirth and Weber
McGraw-Hill/Irwin
International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
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.
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.
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.
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.
3-7
Determinants of culture
Social structure
Religion
Language
Education
Economic philosophy
Political philosophy
Fig: 3.1
McGraw-Hill/Irwin
International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
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
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International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
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.
3-10
Language
Spoken
Verbal cues
Language structures
perception of world
Unspoken
Body language
Personal space
Fig: 3.2
McGraw-Hill/Irwin
International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
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.
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
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International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
3-13
Hofstede’s cultural dimensions
Four dimensions of culture
Power distance
Individualism versus collectivism
Uncertainty avoidance
Masculinity versus femininity
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International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
3-14
Power distance
Cultures are ranked high or low on this
dimensions based on the particular society’s
ability to deal with inequalities
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International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
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.
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.
3-17
Masculinity versus femininity
This dimension looks at the relationship
between gender and work roles
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3-18
Work related values for twenty countries
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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)
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International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
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.
3-21
Managerial implications
Cross cultural literacy
Culture and competitive advantage
Culture and business ethics