International Business_Chapter 3_Differences in Culture_Charles W. Hill

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Chapter Differences in Culture 3

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Transcript of International Business_Chapter 3_Differences in Culture_Charles W. Hill

Page 1: International Business_Chapter 3_Differences in Culture_Charles W. Hill

Chapter

Differences in

Culture

3

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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

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Different components of culture

Values and Norms

Folkways and mores

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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

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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

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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

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Determinants of culture

Social structure

Religion

Language

Education

Economic philosophy

Political philosophy

Fig: 3.1

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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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Religious and ethical systems

Christianity

Economic implications

Hinduism

Economic implications

Islam

Economic implications

Buddhism

Economic implications

Confucianism

Economic implications

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Language

Spoken

Verbal cues

Language structures

perception of world

Unspoken

Body language

Personal space

Fig: 3.2

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Education

Education can be a source of competitive

advantage

Example

India

Malaysia

Singapore

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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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Hofstede’s cultural dimensions

Four dimensions of culture

Power distance

Individualism versus collectivism

Uncertainty avoidance

Masculinity versus femininity

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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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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

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Uncertainty avoidance

This dimension measures the extent to which

a culture socializes its members into

accepting ambiguous situations and tolerating

uncertainty

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Masculinity versus femininity

This dimension looks at the relationship

between gender and work roles

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Work related values for twenty countries

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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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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

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Managerial implications

Cross cultural literacy

Culture and competitive advantage

Culture and business ethics