Social & Cultural Issues in International Cooperation

Cooperative Strategy
Culture & Socio-Cultural

Issues in International Cooperation
Dr Robert Harris
© 2011 masslearning.com
What is Culture?
• Culture is learned, shared and transmitted

• Can be passed on by family, social, state and
religious organisations
• Two Types of Cultural Knowledge
– Factual : facts that can be studied and understood

– Interpretative : requires experience and degree of
empathy.
What is Culture?
• Success of an alliance often depends on

whether it is ‘culturally accepted’
• Managers must avoid applying their

own cultural values or rules of
behaviour
• ‘Self reference criterion trap’
Culture Defined
• The sum total of learned beliefs, values

and customs that serve to direct
managerial and employee behaviour in a
particular country market
Components of Culture: 1
Beliefs:
A large number of mental and verbal

processes which reflect our knowledge
and assessment of products and services
Cultural Values and their Relevance to
Manager/Employee Behaviour
Value Features Relevance To Behaviour
Achievement & success Success flows from hard work Justification for acquisition of
goods
Efficiency & practicality Admiration of things that solve Stimulates purchase of well
problems functioning products
Progress People can improve Ready acceptance of
themselves ‘new’/‘improved’ products
Material comfort The ‘good life’ Fosters acceptance of
convenience/luxury products
Individualism Being oneself Stimulates acceptance of
customised or unique products
External conformity Uniformity of observable Stimulates interest in products
behaviour used by others
Youthfulness State of mind that stresses Stimulates acceptance of
being young at heart products that promote
youthfulness
Source: Schiffman, L.G. & Kanuk, L. L. (2000)
Values:
The indicators stakeholders use to serve as

guides for what is appropriate behaviour,
they tend to be relatively enduring and
stable over time and widely accepted by
members of a particular market
Customs:
Overt modes of behaviour that constitute culturally

approved or acceptable ways of behaving in specific
situations. Customs are evident at major events in
ones life eg birth, marriage, death and at key events
in the year e.g. Christmas, Easter, Ramadan, etc.
A Cultural Framework
Religion
Values &
Language
Attitudes
Aesthetics Cultures Education
Law & Politics Social

Organisations
Technology &
Material Culture
Adapted from Terpstra & Sarathy (2000)
Elements of Culture
Aesthetics
• Refers to designs, shapes, colours etc.
• Need to consider local preferences even if
developing a ‘global brand’
Social Organisation
• Defines the way people relate to each other:
role of men and women, social class, family,
group behaviour etc.
Elements of Culture
• Family Unit: fundamental unit of social org.;
Information on household units useful
• Roles and status: gender roles
• Social hierarchy: income, power, religion,
wealth - need to understand social
stratification
• Attitudes to foreign products
• Attitudes towards achievement
• Attitudes towards change
The Socio-cultural Environment
• Understanding of socio-cultural differences is

of prime importance in ensuring success in
foreign alliances:
• language
• religion
• social organisations
• aesthetics
• education
• plus many more!!
Culture & International Cooperation
• Cultural segmentation important in order to

offer the right product and use appropriate
business communications.
• Need to understand extent of cultural

differences in relation to:
– Language
– Needs and wants
– Consumption patterns
– Market segments
– Socio-economic factors
– Marketing conditions
The Socio-cultural Environment
• Firms increasingly need to understand

partners requirements and how to
manage operations across countries
• e.g. Honda: Different organisational

structures and synthesis of Resource
Based Management style.
The Main Silent Languages in
Overseas Business: 1
Silent Language Implications For Marketing & Business
Time - Appointment scheduling

- The importance of being ‘on time’
-The importance of deadlines
Space - Sizes of offices

-Conversational differences between people
Things - The relevance of material possessions

- The interest in the latest technology
Source: Hall & Hall (1987)
The Main Silent Languages in
Overseas Business: 2
Silent Language Implications For Marketing & Business
Friendship - The significance of trusted friends as

social insurance in times of stress and
emergency
Agreements - Rules of negotiations based on laws,

moral practices or informal customs
Cultural Influences on Business
Behaviour
Consumer Decision
Cultural Forces Cultural Message
Process
Religion
History Symbols
Selecting
Family Morals
Prioritising Wants
Language Knowledge
Decision Making
Education Rules of Behaviour
Arts
Behaviour
Adapted from: Jeannet and Hennesey (2002)
Culture & International Cooperation
Discussion Point:
• What are the key cultural issues that need
to be considered by managers?
• Consider how cultural differences may
impact on the business you have chosen for
your assignment:
– Product, price, promotion, place,
– People, processes and physical elements
– Communications, customs, etc.
Dr. Robert Harris
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Cooperative Strategy

Culture & Socio-Cultural

• Culture is learned, shared and transmitted

• Two Types of Cultural Knowledge

– Factual : facts that can be studied and understood

• Success of an alliance often depends on

• Managers must avoid applying their

• ‘Self reference criterion trap’

• The sum total of learned beliefs, values

A large number of mental and verbal

The indicators stakeholders use to serve as

Overt modes of behaviour that constitute culturally

Aesthetics Cultures Education

Law & Politics Social

• Understanding of socio-cultural differences is

• Cultural segmentation important in order to

• Need to understand extent of cultural

• Firms increasingly need to understand

• e.g. Honda: Different organisational

Time - Appointment scheduling

Space - Sizes of offices

Things - The relevance of material possessions

Friendship - The significance of trusted friends as

Agreements - Rules of negotiations based on laws,

Adapted from: Jeannet and Hennesey (2002)

File source: masslearning.com

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