Professional Documents
Culture Documents
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)
(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
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.
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+
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
• 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
• 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
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.)
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
• 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.
Humane orientation The degree to which a collective encourages and rewards individuals
for being fair, altruistic, generous, caring and kind to others.
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
Individualism Collectivism
67
(group) 49 (group)
0 20 40 60 80 100
Source: Prof. Dr. Stefan Schmid, MEB International Management 2014, ESCP Berlin
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
• 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)