Week 5: CULTURE AND INSTITUTIONS

International Dimensions of Business

is sometimes known as a ‘civilisation’ .The Meaning of Culture • The complex set of values. ideas and social interactions which distinguish one society or group of people from another • An identifiable cultural group may exist at local. regional. beliefs. a group of people sharing common characteristics (especially ethnicity. religion or a shared cultural history). or even trans-national levels • Geert Hofstede: ‘the collective programming of the mind that distinguishes the members of one group or category of people from another’ • At its broadest level.

and S. America Latin American – combining European and indigenous Latin American traits African – an emerging sub-Saharan civilisation? . E.Confucianism is a major influence Japanese – an offspring of Chinese civilisation Hindu – sometimes referred to as Indian or Indic Islamic – including N.Major Civilisations in the Contemporary World • • • • • • • • Sinic (Chinese) . Asia Orthodox – including Russia and parts of E. the Middle East and areas of Central and S. E. Europe Western – Mainly Europe and N. Africa.

• Institutions create the framework within which a country’s economy and businesses operate – including the system of incentives . ways of thinking etc. economic. legal and social framework (or rules) of a society • Formal institutions: constitutions. practices. • Informal institutions: customs.Culture and Institutions • Culture influences a country’s institutions • Institutions provide the political. property rights etc. laws.

Customs and Practices Below the Surface Core Values and Beliefs .The Iceberg Model of Culture Above the Surface Behaviour.

The ‘Culture Onion’ (SpencerOatey – adapted from Hofstede) Artefacts & Products Systems & Institutions Beliefs. Attitudes Basic Assumptions & Values & Conventions Rituals & Behaviour .

The Main Elements of Culture • Language • Religion • Social Structure • Education • Inspiration and Creativity .

the charging of interest etc.g. the family.) • Towards material possessions • Towards time and the future (e.) . entrepreneurship. predetermination etc. the use of time. religious observance etc. forward planning. profit-making.) • Towards business (e.The Main Elements of Culture Values and attitudes: • Towards gender equality or individual freedom • Towards work (the ‘work ethic’ or the place of work in relation to leisure.g.

Individualism versus collectivism .Masculinity versus femininity .Uncertainty avoidance .Long-term versus short-term orientation .Power-distance .Methods of Cultural Assessment • High-context and low context cultures (Hall) • Monochronic and polychronic time (Hall and Trompenaars & Hampden-Turner) • Hofstede’s dimensions of culture: .

shtml .com/geert_hofstede_resources.Hofstede’s Dimensions of Culture for Selected Countries Country Power Individualism Distance 69 80 35 77 54 38 55 31 35 40 38 20 67 48 46 80 14 71 89 91 Masculinity Uncertainty Avoidance 76 30 65 40 92 53 70 29 35 46 Long-Term Orientation 65 118 31 61 80 44 0 33 25 29 Brazil China Germany India Japan Netherlands Pakistan Sweden UK USA 49 66 66 56 95 14 50 5 66 62 Source: http://www.geert-hofstede.

Cultural Controversies • Cultural convergence and diversity (including the ‘westernisation’ or ‘Americanisation’ of consumer culture) • ‘The rise of the creative class’ (Richard Florida) • The ubiquity of the English language? • The resurgence of religion • Cultural explanations for economic development • Asian cultures and economic success .

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