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“A 

Journey to an Expanded Mindset”

Marketing and Sales Across  Cultural Models 
Cultures (MSAC) in International Management
Sessions 4‐6    Identify cultural elements or dimensions that distinguish one 
Cultural value dimensions models  culture/group from another. 
• An Overview of Various Models of Cultural Value Dimensions: Hofstede,  Compare and rank various cultures based on the empirically derived 
Trompenaars, Globe Study dimensions.
• Hofstede: Individualism, Power Distance, Uncertainty Avoidance, 
Masculinity/Femininity. Short vs. Long term orientation, Indulgence.  
Implications for  consumer and managerial behaviors. • HIGH‐LOW CONTEXT Cultures (E. Hall )
• HOMEWORK: In‐class Exercise on Hofstede value dimensions. 
• Hoftstede’s four (five) dimensions of culture
• Subjective vs. Objective culture.  Individual cultural profile vs. cultural traits.  
• Group/national vs. Individual cultural profiles and value preferences. Generalizations vs.  • The Project  GLOBE Cultural Dimensions (House et al., 2005 )
Stereotyping. 
• Value added by additional models:  the Globe Study, Tormpenaars, etc. • Trompenaars’  model of culture: Seven Dilemmas Model of 
Session  Readings:  Culture
• Deresky, Helen (2017). Communicating Across Cultures (CH 4). In International Management: 


Managing Across Borders and Cultures (8th ed.‐ International Edition). Upper Saddle River,  NJ, USA. 
Ghemawat, P. & Reiche, S. (2011). National culture differences and multinational business. 
• The Iceberg Model of Culture: Ten Distinctive Value 
Globalization Note Series. William Davidson Institute at the University of Michigan. 
Orientation (Walker,Walker & Schmitz, 2003)

Key dimesions of major managerial 


Overview of existing managerial 
studies on societal/country culture
studies on societal/country culture

(6) Indulgence vs. 
Restraint (added in 
2011)

http://globe.bus.sfu.ca
/results/countries/SVN
?menu=list

GLOBE STUDY  2017: http://globe.bus.sfu.ca/results
Source: Prof. Dr. Stefan Schmid, MEB International Management 2013/2014, ESCP Berlin
Hofstede’s Value Dimensions: Implications 
The idea behind the use of 
for Marketing and Sales
Bipolar Cultural  Value Dimensions
Individualism Power Distance 
Uncertainty Avoidance 
The level of acceptance by a 
society of the unequal  The extent to which people 
Individualism               Collectivism distribution of power in  in a society feel threatened 
institutions by ambiguous situations

AUL   US   UK   CAN    FRA    GER   SPA    JPN   MEX    ITA   KOR   SIN
Collectivism 
Individualism 
Power Distance The tendency of people to 
The desire for tight social 
frameworks, emotional 
look after themselves and  dependence on belonging to 
High Orientation Toward Authority  Low their immediate families  “the organization,” and a 
only and to neglect the  strong belief in group 
needs of society decisions
MAL  ARA  MEX  IND FRA  ITA  JPN  SPA  ARG  US  GER  UK  DEN  ISR  AUL

For specifc country scores, see: a) G. Hofstede: Culture's Consequences, Comparing Values, Behaviors, Institutions, 


Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall  3‐5 and Organizations Across Nations, 2001, p. 501;                             
b) Geert Hofstede™ Cultural Dimensions:  http://www.geert‐hofstede.com/hofstede_dimensions.php

HOFSTEDE 6D maps of the world: INDIVIDUALISM Individualism‐Collectivism, 22 countries
Each dimension has been derived by comparing many, but not all, countries in the world. The 
findings can be summarized into six world maps of the distribution of that dimension. Of  100
“I” versus “we”
course, in reality there can be quite a bit of within‐country variation. THESE MAPS SHOULD BE  “I” oriented, personality, identity, independence
SEEN AS ROUGH 'CLIMATE MAPS' OF CULTURE
privacy, freedom, differentiation
media main source of information
universalist, sell, persuasion
Individualist verbal orientation, product brands
communication direct
CAVEAT: All cultures have both individual
and collective dispositions
50

“we” oriented, interdependence Collectivist
harmony / face, sharing, conformance
INDIVIDUALISM: the degree to which a culture places high importance on
social network main source of information
self-reliance and individual achievement as opposed to conforming to a group. particularist, trust, invest in relations
visual orientation, company brands
• Individualism – High Index • Collectivism – Low Index communication indirect Data: Hofstede, 2010
– emphasis self needs & goals – emphasis ingroup needs & goals
– beliefs distinguish from others – beliefs shared with in‐group 0
– homogeneous outgroups heterogeneous  – homogeneous ingroups heterogeneous outgroups
ingroups – 7
norms predict behavior better than attitudes
A

N
E
UK
L

A
A

A
L

N
AL
N
T

A
R
E
T

EX

R
IR
IT

FI
AU

BE

AU
SP
FR

JP
US

NE

DE

EC
CH
SW

TH
GE
NO

PO
– attitudes predict behavior better than norms

M
M
Hofstede’s Cultural Dimension HOFSTEDE 6D maps of the world: PDI map
INDIVIDUALISM vs COLLECTIVISM the degree to which people in a particular culture accept that power is distributed
unequally.

Large – High Index Small – Low Index


Spain: • High dependence needs; Inequality accepted • Low dependence needs; Inequality minimized
Indirect way to tell ‐ • Hierarchy needed • Hierarchy for convenience
• Superiors often inaccessible • Superiors accessible
Here is a group of people • Power‐holders have privileges • All have equal rights
Direct approach: “I”,  “You”
with a Friday feeling • Change by revolution • Change by evolution

Power Distance, 22 countries Effects of High Power Distance in 
110
Rightful place vs. equality Russia:
Power Distance Respect authority & elders
large acceptance and expectance of authority High 
hierarchy 
‘rightful place’, dependence,  structures
consume for social status 

Wide salary 
Centralization 
range
55 High 
Power 
Distance
Inequality minimized, anti‐authority
arguments, “critical mind”, opinions Power Distance
respect for youth, independence  small Respect for 
Autocratic 
parents, 
consume for use managers
leaders
Data Hofstede, 2010
0
A

E
N

UK
A

N
L
AL

T
A
R

R
T

E
EX

IR
FI
IT
SI

BE

AU
SP
FR

JP

US
NE

DE
CH

TH

SW
GE
KO

NO
AR

(Matveev, et al., 2004); (Hosftede Centre, 2012); (Lewis, 2012)
M
M
Implications of  Power Distance for Marketing 
Status motive
Communications and Advertising 100
Japan
Face
Success Hungary Social Status
Success
Austria
MAS Switzerland Mexico
Italy
Germany China
UK Poland
USA Argentina Greece Venezuela
Canada Czechia Belgium
50
Turkey Russia
France Panama
Spain
Thailand
Status needs low Portugal
Chile
FEM Finland
Netherlands Face
Denmark Norway Social Status
Int’l ad, PDI‐ Sweden
0
Spain: Respect for elders Elders look like youngsters 0 PDI‐ 50 100
Not acceptable in PDI+ cultures PDI+

HOFSTEDE 6D maps of the world: UAI map Uncertainty Avoidance


The degree to which people in a particular culture tend to avoid uncertain and
ambiguous situations.
STRONG WEAK, tolerant of uncertainity
• Anxiety, higher stress • Relaxed, lower stress
• Inner urge to work hard • Hard work not a virtue per se
• Emotions accepted • Emotions not shown
• Conflict is threatening • Conflict & competition ok
• Need of consensus • Acceptance of dissent
• Need to avoid failure • Willingness to take risks
• Need for laws & rules • Few rules
• Low uncertainty
• High uncertainty
avoidance avoidance
Strong‐ High Index: Weak, Low Index (uncertainty tolerant!): – France – United States
• Anxiety, higher stress; Inner urge to work hard;  • Relaxed, lower stress; Hard work not a virtue per  – Hong Kong
Emotions accepted se; Emotions not shown – Belgium
• Conflict is threatening, Need of consensus • Conflict & competition ok – Greece – Canada
• Need to avoid failure, Need for laws & rules • Willingness to take risks; Few rules – Portugal – Singapore
Uncertainty Avoidance, 22 countries worldwide Hofstede’s Cultural Dimension
Coping with ambiguity
110 UNCERTAINTY AVOIDANCE INDEX (UAI+, UAI ‐)
Strong UA clarity, structure, precision, punctuality
competence/expertise, scientific control UAI+: Process orientation, how the product works
Expertise, process‐orientation UAI‐: Result orientation, the effect
stress, stability, need for purity in food and drink
slow adoption of innovations
advertising is serious

55

Weak UA

Comfortable with ambiguity, chaos
result‐orientation
fast adoption of innovations, tolerance
humor in advertising Data: Hofstede, 2010

0
R S L L N A A TA T R A T L R Z L A L E N E N IN
P O R U B E P O J P F R S P I A U G E T H N E A U N O N U S M A K /I R C H S W D E S Germany: Details and testimonial by a  USA: Result orientation Little information about 
U Professor Dr. M. Rimpler product or details

HOFSTEDE 6D maps of the world: MAS map Masculinity versus femininity


the degree to which a particular culture displays more "masculine" traits vs. “feminine”
values.

• Achievement
• Assertiveness
• Work centrality
• Material success

Versus

• Relationships
• Quality of life
• Cooperation
MASCULINITY – High Index: 
• Group decision‐
FEMININITY – Low Index: 
• Ambitious & need to excel • Quality of life ‐ serving others
making


Tendency to polarize; Live in order to work
Big & fast are beautiful
• Striving for consensus; Work in order to live •
• Small and slow are beautiful
• Admiration for the achiever; Decisiveness • Sympathy for the unfortunate; Intuition
Masculinity‐Femininity, 22 countries worldwide
Gender of nations: hard vs. soft
100 Volvo Sweden
Material success, what you do  “Don’t show off”
competition, money & things, consume for show
live for working, role differentiation
Mothers clean, look after children

Masculine
50

Modesty, who you are, equality (= leveling) Feminine
people, quality of life, consume for use, 
work for living, overlapping roles
Fathers also clean and look after children Data: Hofstede, 2010
0
A

N
UK
E

N
L

A
A
A

N
N

N
T

L
A
G

R
T

E
X

FI
IR
IT

SI
AU
AU

CH
FR
SP
JP

US

DE
NE
ME

CH

TH
GE

SW
KO

NO
AR

HOFSTEDE 6D maps of the world:
Long Term‐ Short Term Orientation
LONG‐TIME‐ORIENTED CULTURE: the basic notion about the world is that it is in 
flux, and preparing for the future is always needed. 
SHORT‐TIME‐ORIENTED CULTURE: the world is essentially as it was created, so that 
the past provides a moral compass, and adhering to it is morally good.

USA, 2011
Vicks VapoRub uses 
Drew Brees, the quarterback of the New 
Orleans Saints, in a campaign that emphasizes 
his role as a father.
Denmark
24
Long Term Orientation ‐ Short Term Orientation Long/short term orientation
100
Long Term Thrift High – Long term Low – Short term
sparing with resources
perseverance, work hard • Many truths  • Absolute truth
pragmatism – (time, context) – Conventional/traditional
slow results • Short term orientation
• Pragmatic
• Long‐term orientation • Concern for stability
50
• Acceptance of change • Quick results expected
• Perseverance • Spending for today
Short‐Term
Spending • Thrift for investment
buy now, pay later
instant gratification, convenience • Long term orientation • Short term
tradition, self‐enhancement Data: Hofstede, 2010 – Hong Kong orientation
0 – Taiwan – West Africa
– Japan – Canada
– South Korea
A

– Pakistan
UK
N

N
A

N
A
I
N
N

N
T

N
R

G
T

EX
R

SW

IT
SI

SI
AU

PO
SP
FR
JP

NE

DE
US
CH

HU

VE
KO

GE

AR
M
– Brazil

INDULGENT CULTURE: it is good to be free ‐ doing what your impulses 


want you to do, is good. Friends are important and life makes sense. 
RESTRAINED CULTURE:  the feeling is that life is hard, and duty, not 
Indulgence
freedom, is the normal state of being.
• The extent to which people try to 
control their desires and impulses

• Weak control (Indulgence), tendency 
for optimism, prefer leisure time 

• Strong control (Restraint), tendency 
for pessimism, indulging is wrong

Source: http://geert‐hofstede.com/china.html 

27
6D model: Indulgence versus Restraint
Comparison of various countries on four 
value dimensions by Hofstede
Indulgence Restraint
Allow relatively free gratification of  Regulated by Stric social norms
basic and natural human desires lea‐
ding to enjoying life and having fun
People tend to feel healty and happier People are less happier and healthier even if the 
level of health is the same
Perception of personal life control Tend to feel that what happens to them is not their 
own doing, but depends on other factors 
Leasure ethic Work ethic 
Optimist, possitive attiture Pessimist cynical attitude
Extravert societies Introvert personalities
Having friends is super important Having friends is less important
Participate actively in sports Less sports participation – you watch what others 
do you dont do it
Less moral discipline Strict moral discipline

HOW DO WE USE CULTURAL VALUE  CULTURE AS A NORMAL DISTRIBUTION
DIMENSIONS MODELS?
Cultural value dimension indices are  
always RELATIVE 
‐ never ABSOLUTE!
Stereotipe Stereotipe

as expressed, for example, by Hofstede‘a value dimensions (scores) on 


Individualism, Power Distance, Uncertainity Avoidance and Masculinity
Hofstede‘s Value Dimensions:
The model applied to Organizations and  Stereotypes vs. generalizations
Management
Management  • STEREOTYPING: ….assumes  • GENERALIZATIONS: an important 
practices  that every member of a  starting point for any field of inquiry

considered: particular culture has the same  • …. statements about a TENDENCY of 


characteristics or traits: all  majority of people in a  cultural group to 
1. Human resources  hold certain beliefs, and to hold certain 
people within one culture behave, 
management values and beliefs, and to engage in 
believe, feel and act the same
• Management selection certain patterns of behavior
• Training
• Evaluation and promotion
• Remuneration Generalizations  
2. Leadership styles or Cultural 
Prototypes:
3. Motivational  • are closed systems of belief: no 
assumptions matter what new information is  • are open to review and change: new 
4. Decision making and  presented, the stereotype channels  information that can offer new insights 
organizational design it into the pre‐existing categories ‐ and a richer and deeper understanding of 
5. Strategy either positive or negative.  inter‐and intra‐cultural nuance is taken 
• many cultures have diverse  into the account
subcultures, which means that 
stereotyping can be misleading!

Generalizations Criticism of Cross‐cultural Models
Cultural Prototypes • Criticism of Hofstede’s work:
– Initial empirical work  done only in the IBM in various countries &  
1. Consciously held – aware it is a description of a group norm with selected members of the middle management staff
2. Descriptive – not evaluative (D.I.E.‐>T principle) – Culture is equated with Country – culture may not be bound to 
Description, Interpretations, Evaluations  built Trust the national/political borders
1. Accurate – Other methodological flaws; some of them were overcome in 
later studies in 1990s and in recent years  (Hofstede, Hofstede & 
2. The first best guess – prior to having direct information Minkov, 2010, expanded 3rd ed.)

3. Modified – based on further observation and experience – Criticism of all Culture Dimensions’ Models:


 Bipolar dimensions are oversimplified
 Difficult to generalize these aspects to everyone in the society 
and to every situation and context:
 People’s Behavior (and Communication style) is dependent on the 
Every culture contains each one of the cultural orientations idiosyncratic nature of the situation, context and personal circumstances
suggested by various models.  Members in all societies cultures posses characteristics of both 
THE KEY DIFFERENCE AMONG CULTURES IS IN THE EMPHASIS. sides of  all the dimensions (see Readings by Fang, 2005)
Possible Solutions to Problems with  The project GLOBE Cultural Dimensions
Culture “Dimensions” Models GLOBE= Global Leadership and Organizational Behavior Effectiveness

Solutions proposed by various authors: METHOD: surveyed 17.370 middle managers in three industries (financial 
Fang, T. (2011): “Yin Yang – a new perspective on culture”: services, food processing and telecommunications); Used a total of 951 
organizations;  170 co‐country investigators; The study took 7 years to complete
Based on the indigenous Chinese philosophy of Yin Yang, Fang conceptualizes culture as 
GOALS: to analyze effects between culture and  leadership and offer guidelines 
for effective leadership styles across cultures. 
possessing inherently paradoxical value orientations, thereby enabling it to embrace 
opposite traits of any given cultural dimension. Potential paradoxical values coexist in  RESULTS: Identify 10  cultural clusters, 9 dimensions and 6 leadership styles
any culture: they give rise to, exist within, reinforce and complement each other to  9 Culture dimensions measured empirically: 
shape the holistic and dynamic nature of  culture. All cultures share the same potential  1. Power Distance 
in value orientations, but at the same time they are also different from each other  2. Uncertainty Avoidance 
because each culture is a unique dynamic portfolio of self‐selected globally available  3. Humane Orientation
value orientations as a result of that culture’s learning over time.   4. Collectivism I (Institutional),
5. Collectivism II (In‐ Group Collectivism)
6. Assertiveness 
7. Gender Egalitarianism
8. Future Orientation
9. Performance Orientation

Source: Culture, Leadership and Organizations The GLOBE Study of 62 Societies. (2004). Eds. House, R.J., Hanges


P.J., Javidan, M. Dorfman, P.W. & Gupta, V. London, UK. SAGE Publications International Educational and Professional publisher.

The GLOBE Study of 62 societies


The measures in GLOBE study
• METHODOLOGY: all dimensions were measured on four scales:
– Societal level: A. PRACTICES (as is) and B. VALUES (as it should be)
– Organizational level: A. PRACTICES (as is) and B. VALUES (as it should be)
Measurements: 5‐point Likert type scales were used (the higher the score, the greater the 
agreement with the statement).

• DEVELOPED 10 COUNTRY CLUSTERS:
Germanic Europe, Anglo, Nordic Europe, Latin Europe, Eastern 
Europe, Sub‐Sahara Africa, Middle East, Confucian Asia,  
Southern Asia, Latin America
• STATISTICAL ANALYSIS: 
– Average scores (SD) by country
– Test banding: societal scores are grouped into A, B and C, so that scores within bands are 
considered as being NOT meaningfully different.
• SUB‐SAMPLE CHARACTERISTICS: 74,8% respondents male, 19,2 average years of experience (on 
the average 10 years as managers)
Dimensions of organizational culture: GLOBE
CULTURE CLUSTERS in the GLOBE study
Future orientation The extent to which an organization is future oriented and not
oriented toward present or past time.

Uncertainty The degree to which an organization is apt to tolerate uncertainty


and unstructured situations.
avoidance
Power distance The degree to which members of a collective expect power to be
distributed equally.

Individualism vs. It reflects the degree to which individuals are expected to be


concerned with the collective (family, department or company, caste,
collectivism
religion, nation) in contrast to personal interests.
Performance The degree to which a collective encourages and rewards group
members for performance improvement and excellence.
orientation
Assertiveness The degree to which individuals are assertive, dominant and
demanding in their relationships with others.

Humane orientation The degree to which a collective encourages and rewards individuals
for being fair, altruistic, generous, caring and kind to others.

Gender The extent to which division of tasks, responsibilities and rewards is


conditional on biological gender of an employee.
egalitarianism

GLOBE study Dimensions GLOBE study Dimensions

FUTURE ORIENTATION
ASSERTIVENESS
• Low: Sweden, New  • Low: Russia, Argentina, 
How much people in a society  The level of importance a 
Zealand, Switzerland society attaches to future –
Poland
are expected to be tough, 
confrontational and  • High: Greece, Austria,  oriented behavior such as  • High: Netherlands, 
competitive VS. modest and  planning and investing in the  Switzerland, Singapore
tender
Germany future.

PERFORMANCE  HUMANE 
ORIENTATION • Low: Russia,  ORIENTATION • Low: Germany, Spain, 
Argentina, Greece France
The importance of performance  The extent to which society 
improvement and excellence in  • High: New Zealand,  encourages and  rewards  • High: Malaysia, 
society; refers to whether or not  Honk Kong,  people for being fair, altruistic,  Ireland, Philippines
people are encouraged to strive for  Singapore generous, caring and kind.
continued improvement
GLOBE dimensions of organizational culture
Low uncertainty 75 High uncertainty
36
avoidance avoidance

Low pow er High pow er


33 75
distance distance
45
Individualism Collectivism
30
(institutional) (institutional)

Individualism Collectivism
67
(group) 49 (group)

Low performance High performance


26 90
orientation orientation

Low future High future


32 58
orientation orientation

Low assertiveness 41 67 High assertiveness

Low humane 48 High humane


30
orientation orientation
92
Low gender Practices High gender
egalitarianism Values 83 egalitarianism

0 20 40 60 80 100
Source: Prof. Dr. Stefan Schmid, MEB International Management 2014, ESCP Berlin

Six leaderships styles identified in the  Leaderships styles identified in the GLOBE 


GLOBE study study across the culture clusters
Trompenaars’  model of culture
Trompenaar’s Dimensions
Norms are the explicit expectations about 
how one should behave that are shared by a 
group of people.
Products & Artifacts Obligation
Explicit Values are the implicit assumptions about 
culture Norms and Values what is good and bad, right and wrong.  High Low
Cultural values are shared by members of a  Universalistic Particularistic
cultural group. Individual values are values 
that an individual holds, and these may or may  US GER   SWE   UK   ITA FRA JPN   SPA    SIN
Implicit not be shared by others.
culture
Basic assumptions are deeply held beliefs  Emotional Orientation in Relationship
about the world, nature and human beings. High Low
They shape our explicit and implicit beliefs, 
thoughts, norms, and values, but are usually 
inaccessible to our consciousness  Neutral Affective

JPN UK   GER   SWE USA FRA   SPA   ITA        CHI

Source: “Riding the Waves of Culture” by Fons Trompenaars Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall  3‐50

CLASS EXCERCISE:
Seven Dilemma Model of Culture
Trompenaar’s Dimensions (Source:Fons Trompenaars)
Self‐Guess: Please indicate your own preferences/orientations on the scales below: How does 
this affect the way you work across cultures?
Focus on Focus on
Privacy in Relationship Rules Relationships
Focus on the Focus on the
High Low Individual Group
Large Large
Specific Diffuse Public Space Private Space
UK   US FRA          GER ITA   JPN   SWE        SPA   CHI Status: What Status: Who
You Do You Are
Show Prefer to
Source of Power and Status Feelings Easily Hide Feelings
High Low One Thing Many Things at
Personal Society at a Time the Same Time
Nature as
US   UK   SWE   GER   FRA ITA   SPA   JPN   CHI Nature as an
Mechanism
Organism

Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall  3‐51 Your Perceptions: Indicate where you perceive some of the preferences of the other cultures 


you work with. How does this affect the way you work with them?
TAKEAWAYS: Effects of Culture on Management       Additional Implications of existing 
in International Firm Cultural Distance models on International 
• Teamwork. What should managers do if foreign and domestic  Marketing Management
nationals don’t get along with each other? 
• Lifetime employment. Workers in some Japanese companies expect to 
work for the same company during their careers; how should a foreign 
firm handle this? 
• Pay for performance system. In China and Japan, a person’s age is  
important in promoting workers. Yet how do such workers perform 
when merit performance‐based measures are used?   
• Organizational structure. Preferences for centralized, bureaucratic 
structures may deter information sharing. 
• Union‐management relationships. European firms have generally 
evolved into a business culture in which workers enjoy a more equal 
status with managers. 
• Attitudes toward ambiguity. If you are not comfortable working with 
minimum guidance or taking independent action, then you may have 
difficulty fitting into some cultures. 

CULTURAL DISTANCE: CULTURAL DISTANCE in Research: Issues in Cross‐Cultural 


Implications for managerial decision‐making in  Business Relationships
• Business Practices
International Marketing • Relationships with Business 
• Language People

• Legal Environment
• Way of thinking
• Economic Environment

• Patterns of behavior
Cultural  Business 
Distance Distance

Geographic 
RESULTS: Cultural Issues in 
International Firms
Distance • Physical Distance
• Time Difference
• Hamper the development of trust
• Affect the maintenance of business 
relationships
• May cause early dissolution of 
business relationships
Source: Prime, Obadia & Vida, IBR (2009)

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