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Grundlagen des Intercultural

Management

Prof. Dr. Clive Flynn

www.dhbw-vs.de
Recommended Reading

ISBN: 9781292015897 ISBN: 9781412960458

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Introduction to
Cultural Theory I

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Learning Objectives
• Demonstrate an understanding of the basic principles of culture

• Understand the two cultural paradigms evident in the literature and


their effect on cultural understanding

• Describe the differences between the different levels of culture


evident in society

• Understand the general importance of cultural understanding for


international business

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What is Culture?

Video: Cultural Diversity


http://robfields.com/wp-content/uploads/2014/02/culture_capture.jpg
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What is Culture?
• Culture
• Commonly used to describe behaviours typical to a particular
nation, tribe or folk. (Jameson 2007, p. 204)

• Simply put:
“the way of life of a people” (Mathews 2000, p. 1)

JAMESON, D. A., 2007. Reconceptualizing Cultural Identity and its Role in Intercultural Business Communication. Journal of Business Communication, 44 (3), pp. 199-235.;
MATHEWS, G., 2000. Global Culture/Individual Identity: Searching for Home in the Cultural Supermarket. London: Routledge. 6
What is Culture?
• Culture
• Evolves within each society over time to characterize and
distinguish its members from others.
• It captures how the members of the society live

• It explains how members behave toward each other and with other
groups.

• It defines their beliefs and values, and how they perceive the meaning
of life.
DVD ;-) What do you see/learn here?

Brooklyn 1; Brooklyn 2

BROWAEYS, M.-J., and PRICE, R., 2015. Understanding Cross-Cultural Management, 3rd ed. Harlow (UK): Pearson Education.
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What is Culture?
• Culture
• Determines:
• How we see ourselves

• How we see the world

• Culture is Learned
• Socialization

• Acculturation

Video: Different realities

BROWAEYS, M.-J., and PRICE, R., 2015. Understanding Cross-Cultural Management, 3rd ed. Harlow (UK): Pearson Education.
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What is Culture?
• Culture Is NOT
• Right or wrong – culture is relative.
• There is no cultural absolute. Different nationalities simply perceive the
world differently.

• About individual behaviour – culture is about groups.


• It refers to a collective phenomenon of shared values and meanings.

• Inherited – It is derived from the social environment


• We are not born with a shared set of values and attitudes; we learn and
acquire as the grow up.

BROWAEYS, M.-J., and PRICE, R., 2015. Understanding Cross-Cultural Management, 3rd ed. Harlow (UK): Pearson Education.
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What is Culture?
• Cultural Paradigms
• The literature demonstrates two differing paradigms
1. Bipolar Paradigm (e.g. Fang 2006, p. 71)
• Culture seen as a stable and static entity

• Typical of the work of Hofstede, Trompenaars and Hampden-Turner, Hall


and House et.al. etc.

• Comparison based on linear consideration of cultural dimensions e.g.

• Hofstede’s Power Distance

• Hall’s High and Low Context

FANG, T., 2006. From "Onion" to "Ocean": Paradox and Change in National Cultures. International Studies of Management & Organization, 35 (4), pp. 71-90.
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What is Culture?
• Cultural Paradigms
• The literature demonstrates two differing paradigms
2. Culture as a dynamic entity (e.g. Fang 2006, p. 71)
• A cultural level influences the level above and below it
(Erez & Gati 2004, p. 587)

• National cultures considered


“living organisms, not time-free ‘fossils’ … having a life of [their] own”
(Fang 2006, pp. 81-82)

• “whenever a group has enough common experience, a culture begins to


form” (Schein 2009, p. 18)

• “most countries consist of hundreds of cultures and corresponding sub-


cultures” (Triandis 1995, p. 3) Video: Dynamic Culture
FANG, T., 2006. From "Onion" to "Ocean": Paradox and Change in National Cultures. International Studies of Management & Organization, 35 (4), pp. 71-90.
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What is Culture?
• Three Levels of Culture
1. Artefacts and Products
• Can be observed in terms of architecture, rituals, dress codes,
contracts, language, gestures, eating etc.
2. Norms and Values
• Beliefs or Norms: Statement of fact about the way things are done
• Values: What is good or bad, how things should be
3. Basic Assumptions
• Intangible, implicit elements: basic underlying assumptions.
• Considers things people take for granted

BROWAEYS, M.-J., and PRICE, R., 2015. Understanding Cross-Cultural Management, 3rd ed. Harlow (UK): Pearson Education.; TROMPENAARS, A., and HAMPDEN-
TURNER, C., 1997. Riding the Waves of Culture: Understanding Cultural Diversity in Business, 2nd ed. London: Nicholas Brealey. 12
What is Culture?
• Models of Culture

Basic
Assumptions

Norms and
Values

Artefacts
and Products

Iceberg Model Ring Model


PETERSON, B., 2004. Cultural Intelligence. Yarmouth (ME): Intercultural Press.; TROMPENAARS, A., and HAMPDEN-TURNER, C., 1997. Riding the Waves of Culture:
Understanding Cultural Diversity in Business, 2nd ed. London: Nicholas Brealey. 13
What is Culture?
• Comparison of value systems of societies
• Four categories (Ruano-Borbalan 2002, p. 339)

Traditional Rational Society Survivalists Post-modern


Society Society
• Religion plays an • Interests of • Survival is primary • Tolerant
important role individual come concern • Democratic
• Large families first • People unhappy
encouraged • Birth control • People intolerant
• Conformity is encouraged
• Little equality
rewarded • Authority of state between sexes
• Individualism is recognised
• Materialism is
rejected predominant
E.g. Many Arab E.g. Germany E.g. ex communist E.g. Scandinavia,
countries countries Netherlands

BROWAEYS, M.-J., and PRICE, R., 2015. Understanding Cross-Cultural Management, 3rd ed. Harlow (UK): Pearson Education.
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What is Culture?
• Cultures and Nations
• Cultures and nations are NOT the same Examples: 1, 2, 3, 4, 5

• Influence of culture/nation on organisations:


• Macro level
• Laws and economic institutions

• The nation must be considered by organisations going about their business.

• Micro level
• Cultural elements relating to:

• Employer – employee relationships

• Behaviour among employees.


BROWAEYS, M.-J., and PRICE, R., 2015. Understanding Cross-Cultural Management, 3rd ed. Harlow (UK): Pearson Education.
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What is Culture?
• Cultures can Develop at Different Levels
• “Global” Culture

• National Culture

• Organisational culture

• Corporate culture

• Professional culture

• Important Consideration
• Difficult to know culture except from inside (Bodley 1994, p. 9)

• Don’t oversimplify culture (Schein 2009, p. 21)


BROWAEYS, M.-J., and PRICE, R., 2015. Understanding Cross-Cultural Management, 3rd ed. Harlow (UK): Pearson Education.
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What is Culture?
• Levels of Culture
• Global Culture
• Does Global Culture exist?

BROWAEYS, M.-J., and PRICE, R., 2015. Understanding Cross-Cultural Management, 3rd ed. Harlow (UK): Pearson Education.
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What is Culture?
• Levels of Culture
• Global Culture
• A universal global culture does not exist

• But, according to Bird and Stevens:

increasingly, an identifiable and homogeneous group is emerging


at least within the world business community with one foot in their
native culture and one foot in the global arena, they are members
of a distinctly identifiable and emerging global culture

Video: Global Digital Culture

BIRD, A., and STEVENS, M. J., 2003. Toward an Emergent Global Culture and the Effects of Globalization on Obsolescing National Cultures. Journal of International
Management, 9 (4), pp. 395-407. 18
What is Culture?
• Levels of Culture
• National Culture
• Origin in anthropology e.g. Tylor, Mead, Young

• Elements that contribute to creation of national culture:


• Physical environment

• History of the nation

• Institutions that contribute to establishment of national culture


• Family/Religion/Education

• Mass communication media

• The multinational company as culture-building institution


BROWAEYS, M.-J., and PRICE, R., 2015. Understanding Cross-Cultural Management, 3rd ed. Harlow (UK): Pearson Education.; TAYEB, M. H., 2003. International
Management: Theories and Practices. Harlow: Financial Times Prentice Hall. 19
What is Culture?
• Levels of Culture
• National Culture
• Social Stratification
• Ascribed group memberships

• Gender, family, age, caste, and ethnic, racial, or national origin

• Acquired group memberships

• Religion, political affiliation, professional association

• Two other factors that are important

• Education

• Social connections

BROWAEYS, M.-J., and PRICE, R., 2015. Understanding Cross-Cultural Management, 3rd ed. Harlow (UK): Pearson Education.
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What is Culture?
• Levels of Culture
• National Culture
• Language as a Key Dimension of Culture
• The “mirror” or expression of culture, language is essential for
communications, it also provides insights into culture.

• Linguistic proficiency is a great asset in international business because it


facilitates cross-cultural understanding.

• Language has both verbal and nonverbal (unspoken, facial expressions and
gestures).

• At present the world has nearly 7,000 active languages, including over 2,000
in Africa and Asia, respectively.

BROWAEYS, M.-J., and PRICE, R., 2015. Understanding Cross-Cultural Management, 3rd ed. Harlow (UK): Pearson Education.
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What is Culture?
• Levels of Culture
• National Culture
• Language as a Key Dimension of Culture

https://www.accreditedlanguage.com/2016/09/09/the-10-most-common-languages/
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What is Culture?
• Levels of Culture
• National Culture
• Religion as a Key Dimension of Culture
• Religion impacts almost every business function

• Centuries of profound religious influence continue to play a major role in


shaping cultural values and behavior

• many strong values are the result of a dominant religion

BROWAEYS, M.-J., and PRICE, R., 2015. Understanding Cross-Cultural Management, 3rd ed. Harlow (UK): Pearson Education.
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What is Culture?
• Levels of Culture
• National Culture
• Religion as a Key Dimension of Culture

BROWAEYS, M.-J., and PRICE, R., 2015. Understanding Cross-Cultural Management, 3rd ed. Harlow (UK): Pearson Education.
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What is Culture?
• Levels of Culture
• National Culture
• The Cultural Cluster Approach
• The cultural cluster approach is another technique for classifying and
making sense of national cultures.

• A cultural cluster comprises countries that share many cultural similarities.

BROWAEYS, M.-J., and PRICE, R., 2015. Understanding Cross-Cultural Management, 3rd ed. Harlow (UK): Pearson Education.
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What is Culture?
• Levels of Culture
• National Culture
• The Cultural Cluster Approach

BROWAEYS, M.-J., and PRICE, R., 2015. Understanding Cross-Cultural Management, 3rd ed. Harlow (UK): Pearson Education.
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What is Culture?
• Levels of Culture
• National Culture
• Dimensions of culture

SCHNEIDER, S. C., BARSOUX, J.-L., and STAHL, G. K., 2014. Managing Across Cultures, 3rd ed. Harlow: Pearson.
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What is Culture?
• Levels of Culture
• National Culture
• Hofstede’s National Cultural Dimensions
• Four original dimensions of national culture

• Individualism versus collectivism

• Power distance

• Uncertainty avoidance

• Masculinity versus femininity

• Eventually extended with a fifth dimension, which was not identified in the
original research

• long-term vs. short-term orientation


BROWAEYS, M.-J., and PRICE, R., 2015. Understanding Cross-Cultural Management, 3rd ed. Harlow (UK): Pearson Education. HOFSTEDE, G. H., and HOFSTEDE, G. J.,
2005. Cultures and Organizations: Software of the Mind. New York: McGraw-Hill. 28
What is Culture?
• Levels of Culture
• National Culture
• Hofstede’s National Cultural Dimensions
• Low vs High Power Distance

BROWAEYS, M.-J., and PRICE, R., 2015. Understanding Cross-Cultural Management, 3rd ed. Harlow (UK): Pearson Education. HOFSTEDE, G. H., and HOFSTEDE, G. J.,
2005. Cultures and Organizations: Software of the Mind. New York: McGraw-Hill. 29
What is Culture?
• Levels of Culture
• National Culture
• Hofstede’s National Cultural Dimensions
• Individualism vs Collectivism

BROWAEYS, M.-J., and PRICE, R., 2015. Understanding Cross-Cultural Management, 3rd ed. Harlow (UK): Pearson Education. HOFSTEDE, G. H., and HOFSTEDE, G. J.,
2005. Cultures and Organizations: Software of the Mind. New York: McGraw-Hill. 30
What is Culture?
• Levels of Culture
• National Culture
• Hofstede’s National Cultural Dimensions
• Masculinity vs Femininity

BROWAEYS, M.-J., and PRICE, R., 2015. Understanding Cross-Cultural Management, 3rd ed. Harlow (UK): Pearson Education. HOFSTEDE, G. H., and HOFSTEDE, G. J.,
2005. Cultures and Organizations: Software of the Mind. New York: McGraw-Hill. 31
What is Culture?
• Levels of Culture
• National Culture
• Hofstede’s National Cultural Dimensions
• High vs Low Uncertainty Avoidance

BROWAEYS, M.-J., and PRICE, R., 2015. Understanding Cross-Cultural Management, 3rd ed. Harlow (UK): Pearson Education. HOFSTEDE, G. H., and HOFSTEDE, G. J.,
2005. Cultures and Organizations: Software of the Mind. New York: McGraw-Hill. 32
What is Culture?
• Levels of Culture
• National Culture
• Hofstede’s National Cultural Dimensions
• Short-term vs Long-term Orientation

BROWAEYS, M.-J., and PRICE, R., 2015. Understanding Cross-Cultural Management, 3rd ed. Harlow (UK): Pearson Education. HOFSTEDE, G. H., and HOFSTEDE, G. J.,
2005. Cultures and Organizations: Software of the Mind. New York: McGraw-Hill. 33
What is Culture?
• Levels of Culture
• National Culture
• Hofstede’s National Cultural
Dimensions
• The effect of Hofstede’s five
dimensions on issues in
management and business

BROWAEYS, M.-J., and PRICE, R., 2015. Understanding Cross-Cultural Management, 3rd ed. Harlow (UK): Pearson Education. HOFSTEDE, G. H., and HOFSTEDE, G. J.,
2005. Cultures and Organizations: Software of the Mind. New York: McGraw-Hill. 34
What is Culture?
• Levels of Culture
• National Culture
• Hofstede’s National Cultural Dimensions
• This work is not without it critics (Fang 2003; McSweeney 2002; Signorini, Wiesemes and
Murphy 2009; Williamson 2002)

• Did form the basis for further research

• Is useful as an initial point of reference when aware of its limitations

• Do not expect all people in a nation/culture to behave according to these


dimensions and you will avoid surprises

BROWAEYS, M.-J., and PRICE, R., 2015. Understanding Cross-Cultural Management, 3rd ed. Harlow (UK): Pearson Education. HOFSTEDE, G. H., and HOFSTEDE, G. J.,
2005. Cultures and Organizations: Software of the Mind. New York: McGraw-Hill. 35
References
ADLER, N. J., 2002. International Dimensions of Organizational Behavior, 4th ed. Cincinnati (OH): South-Western.

BIRD, A., and STEVENS, M. J., 2003. Toward an Emergent Global Culture and the Effects of Globalization on Obsolescing National
Cultures. Journal of International Management, 9 (4), pp. 395-407.

BLOOR, G., and DAWSON, P., 1994. Understanding Professional Culture in Organizational Context. Organization Studies, 15 (2),
pp. 275-295.

BODLEY, J. H., 1994. Cultural Anthropology: Tribes, States, and the Global System. Mountain View (CA): Mayfield Publishing.

BROWAEYS, M.-J., and PRICE, R., 2015. Understanding Cross-Cultural Management, 3rd ed. Harlow (UK): Pearson Education.

CHHOKAR, J. S., BRODBECK, F. C., and HOUSE, R. J., 2007. Culture and Leadership Across the World : The GLOBE Book of In-
depth Studies of 25 Societies. Mahwah (NJ): Lawrence Erlbaum Associates.

DEARDORFF, D. K. (ed.) 2009. The SAGE Handbook of Intercultural Competence. Thousand Oaks (CAL): SAGE Publications.

EREZ, M., and GATI, E., 2004. A Dynamic, Multi-Level Model of Culture: From the Micro Level of the Individual to the Macro Level of
a Global Culture. Applied Psychology: An International Review, 53 (4), pp. 583-598.

FANG, T., 2003. A Critique of Hofstede's Fifth National Culture Dimension. International Journal of Cross Cultural Management, 3
(3), pp. 347-368.

FANG, T., 2006. From "Onion" to "Ocean": Paradox and Change in National Cultures. International Studies of Management &
Organization, 35 (4), pp. 71-90.

HALL, E. T., 1989. Beyond Culture. New York: Anchor Books.

HALL, E. T., and HALL, M. R., 1990. Hidden Differences: Doing Business With the Japanese. Garden City (NY): Anchor
Press/Doubleday.

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References
HALL, P., 2005. Interprofessional Teamwork: Professional Cultures as Barriers. Journal of Interprofessional Care, 19, pp. 188-196.

JAMESON, D. A., 2007. Reconceptualizing Cultural Identity and its Role in Intercultural Business Communication. Journal of
Business Communication, 44 (3), pp. 199-235.

KLUCKHOHN, F. R., and STRODTBECK, F. L., 1961. Variations in Value Orientations. Evanston (Il): Row, Peterson and Company.

MATHEWS, G., 2000. Global Culture/Individual Identity: Searching for Home in the Cultural Supermarket. London: Routledge.

MCSWEENEY, B., 2002. Hofstede's Model of National Cultural Differences and Their Consequences: A Triumph of Faith — A
Failure of Analysis. Human Relations, 55 (1), pp. 89-118.

NARDON, L., and STEERS, R. M., 2009. The Culture Theory Jungle: Divergence and Convergence in Models of National Culture.
In: BHAGAT, R. S., and STEERS, R. M. (eds.) Cambridge Handbook of Culture, Organizations, and Work. Cambridge:
Cambridge University Press. pp. 3-22.

PETERSON, B., 2004. Cultural Intelligence. Yarmouth (ME): Intercultural Press.

RUANO-BORBALAN, J.-C., 2002. Valeurs et cultures: Allons-nous devenir postmodernes? In: JOURNET, N. (ed.) La culture: De
L'universel au particulier. Auxerre Cedex (F): Sciences Humaines Éditions. pp. 335-342.

SCHEIN, E. H., 1996. Culture: The Missing Concept in Organization Studies. Administrative Science Quarterly, 41 (2), pp. 229-240.

SCHEIN, E. H., 2009. The Corporate Culture Survival Guide, New and rev. ed. San Francisco (CA): Jossey-Bass

SCHEIN, E. H., 2010. Organizational Culture and Leadership, 4th ed. San Francisco (CA): Jossey-Bass.

SCHNEIDER, S. C., BARSOUX, J.-L., and STAHL, G. K., 2014. Managing Across Cultures, 3rd ed. Harlow: Pearson.

SIGNORINI, P., WIESEMES, R., and MURPHY, R., 2009. Developing Alternative Frameworks for Exploring Intercultural Learning: A
Critique of Hofstede's Cultural Difference Model. Teaching in Higher Education, 14 (3), pp. 253-264.

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References
TAYEB, M. H., 2003. International Management: Theories and Practices. Harlow: Financial Times Prentice Hall.

TRIANDIS, H. C., 1995. Individualism & Collectivism. Boulder (CO): Westview Press.

TROMPENAARS, A., and HAMPDEN-TURNER, C., 1997. Riding the Waves of Culture: Understanding Cultural Diversity in
Business, 2nd ed. London: Nicholas Brealey.

WILLIAMSON, D., 2002. Forward From a Critique of Hofstede's Model of National Culture. Human Relations, 55 (11), p. 1373.

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