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Chapter

Differences in
Culture

3-2

Guanxi-strength of relationship

U.S.
Business transactions are
conducted within the
framework of contract law
and mechanisms for
dispute resolution are in
place
Reciprocal networks are
becoming more important
but have to operate within
the confines of the law
Gifts may be frowned upon
as bribery (Foreign Corrupt
Practices Act)

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China
Personal power and
relationships or
connections rather than
rule of law are important in
China
Reciprocal relationship
networks can often mean
doing favors or offering
bribes
Establish relationships with
gifts

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3-3

What is culture?

A system of values and norms that are


shared among a group of people and that
when taken together constitute a design for
living.

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Hofstede, Namenwirth and Weber

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3-4

Different components of culture

Values and Norms

Folkways and mores

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3-5

Values and norms

Values: Abstract ideas/assumptions about


what a group believes to be good, right and
desirable

Norms: social rules and guidelines that


prescribe appropriate behavior in particular
situations

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3-6

Folkways and mores

Folkways: Routine conventions of everyday life.


Little moral significance
Generally, social conventions such as dress
codes, social manners, and neighborly behavior
Mores: Norms central to the functioning of society
and its social life
Greater significance than folkways
Violation can bring serious retribution
Theft, adultery, incest and cannibalism

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3-7

Culture, society and nation states

Society is a group of people who share a


common culture
No one to one correspondence between
society and a nation state

Nation states are political creations


Many cultures can co-exist within a nation state

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3-8

Determinants of culture
Fig: 3.1

Social structure
Religion
Language
Education
Economic philosophy
Political philosophy

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3-9

Social structure

Two dimensions

The extent to which society is group or


individually oriented
Degree of stratification into castes or classes
Social mobility
Significance to business

Other influences

Political philosophy
Economic philosophy

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Religious and ethical systems

310

Christianity
Economic implications
Hinduism
Economic implications
Islam
Economic implications
Buddhism
Economic implications
Confucianism
Economic implications

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World religions

311

Map 3.1

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Language

312

Fig: 3.2
Spoken
Verbal cues
Language structures
perception of world
Unspoken
Body language
Personal space

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Education

313

Education can be a source of competitive


advantage

Example
India
Malaysia
Singapore

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Percentage of GNP spent on education

314

Map 3.2

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Adult literacy rates

315

Map 3.3

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Culture and the workplace

316

Study on the relationship between culture and the


workplace by Geert Hofstede 1967-73

40 countries
100,000 individuals

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Hofstedes cultural dimensions

317

Four dimensions of culture

Power distance
Individualism versus collectivism
Uncertainty avoidance
Masculinity versus femininity

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Power distance

318

Cultures are ranked high or low on this


dimensions based on the particular societys
ability to deal with inequalities

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Individualism versus collectivism

319

This dimension focuses on the relationship between


the individual and his/her fellows within a culture
Individualistic societies:
loose ties
individual achievement and freedom highly
valued
Collectivist societies tight ties
tend to be more relationship oriented

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Uncertainty avoidance

320

This dimension measures the extent to which


a culture socializes its members into
accepting ambiguous situations and tolerating
uncertainty

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Masculinity versus femininity

321

This dimension looks at the relationship


between gender and work roles

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322

Work related values for twenty countries

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Problems with Hofstedes findings

323

Assumes one-to-one relationship between


culture and the nation-state
His research may have been culturally bound.
Survey respondents were from a single
industry (computer) and a single company
(IBM)

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Cultural change

324

Culture is not a constant; it evolves over


time
Since 1960s American values
toward the role of women are changing.
Japan moves toward greater individualism
in the workplace
Effects of globalization

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Changing values

325

Fig: 3.3

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Managerial implications

326

Cross cultural literacy


Culture and competitive advantage
Culture and business ethics

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