International Business Environment IBEculture

1、What Is Culture?v Culture is a system of values and norms that are shared among a group of people and that when taken together constitute a design for living.v Values are abstract ideas about what a group believes to be good, right and desirable· Bedrock of a culture; with emotional significanc

2、e· Have influence on political systemsv Norms are the social rules and guidelines that prescribe appropriate behaviour in particular situationsØ Folkways · routine conventions of everyday life· Of little moral significance, social convention, social manners, rituals and symbolic

3、behaviour, Violation is not a serious matter, but eccentric, ill-mannered· e.g. attitude to timeo US and north EU (Germany and Britain) conscious about time scheduling, irritated when wasted, like moneyo Arab, Latin, elastic character, keeping to a schedule is less important than finishing an i

4、nteraction with peopleo Saudi, arrive tomorrow may mean next week· Rituals and symbols are the most visible manifestations of culture and constitute the outward expression of deeper valueso e.g. Japan, bow while presenting the card (position rank) to the foreigner, the bow is a sign of respect,

5、 the deeper the angle of the bow, the greater the reverence, receiver is expected to exam the card carefully return respect and acknowledge the position in hierarchyØ Mores · Norms seen as central to the functioning of a society and its social life · Greater significance (indictment a

6、gainst theft, adultery, incest and cannibalism)· Violation leads to retributionE.g. US, drinking alcohol is accepted, in Saudi Arab leads to imprisonmentv Society refers to a group of people who share a common set of values and norms· There is not a strict one-to-one correspondence between

7、 a society and a nation-state.· Nation: political creation· A country can contain one cultural or severalE.g. Canada, three cultures Anglo culture, French-speaking culture, native American cultureE.g. African nations have cultural diff btw tribal groups, Rwanda dissolved into civil war btw

8、 two tribes, Tutsis and Hutus· Cultures embrace several nationsE.g. Islamic culture shared by many cts in middle east, Asia and Africanv Culture is not static· e.g. British culture have changed over the past 20 years, weaker class distinction and lower level of industrial disputes, btw 199

9、5-2005, the number of days lost per 1000 workers due to strikes in UK (28), US (33), Canada(168)Some Analytical Models for Understanding Cultural DifferencesHOFSTEDES MODEL OF NATIONAL CULTURES Five key dimensionsDimension DefinitionSome implications for business and managementExamples1. Individuali

10、sm VS CollectivismOriented toward the right and goal of individual or that of the group, i.e., I or We first(ties between individuals & whether individual achievement is valued)1. Task more important than relationship2. Autonomy over conformity3. Self-achievement over group harmonyChina: collect

11、ivism + individualism eastUK/US: individualism west2. Power DistanceThe degree to which inequality in hierarchical relationships and authority exists and is accepted(how a society deals with the fact that people are unequal in physical and intellectual capabilities)1.Respect for higher position/ ran

12、k2. Distinct supervisor-subordinate roles3. Top-down managementChina: high power distanceUS: low3. Uncertainty AvoidanceThe degree ambiguity and uncertainty is tolerated and accepted.(accepting ambiguous situations and tolerating uncertainty)1.high: placing a premium on job security, career patterns

13、, retirement benefits, etc; strong need for rules, regulations, clear instructions; subordinates initiatives tightly controlled2.low: a greater readiness to take risks and less emotional resistance to changee.g. job security, career pattern, retirement benefits, need for rules and regulations4. Masc

14、ulinity VS FemininityThe degree a society values traditional gender roles.1.masculine culture: sex roles sharply differentiated; stress achievement, effective exercise of power2.feminine culture: sex roles less sharply distinguished, little differentiation made between man and womanM: career-oriente

15、d (US)F: family-oriented (Scandinavia countries, Sweden: 最多maternity leave)5. Long-Term OrientationThe degree tradition and virtues oriented toward future reward is valued.1.Persistence and perseverance to obtain long-term rewards (vs. quick results)2.Strong work ethic; sense of shameUS: ST oriented

16、China: LT oriented 1. IND vs. COL (refer back to influence of culture, individual and group)Relationship btw individual and his fellowIND: ties btw individuals are loose and individual achievement and freedom were highly valuedCOL: ties btw individuals are tight and people are born into collectives

17、(extended family), everyone look after the interest of collectives2Power distance: How a society deals with the fact that people are unequal in physical and intellectual capabilitiesHigh power distance cts: let inequality growLow power distance cts: play down such inequalities3. Uncertainty avoidanc

18、eThe extent to which different cultures socialize their members into accepting ambiguous situations and tolerating uncertainty High certainty avoidance: job security, career patterns, retirement benefits, need for rules and regulations, managers issue clear instructions, subordinates initiatives con

19、trolledLow certainty avoidance: take risks, less emotional resistance to change4. Masculinity vs. femininity (capitalism vs. socialism)5. Long-term orientation (Confucian dynamism)Attitudes towards time, persistence, ordering by status, protection of face, respect for tradition, and reciprocation of

20、 gifts and favorsHigh on IND (US, Canada)low on power distanceHigh on COL (Asia)high on power distanceJapan high on UAI, MASNotes:Obvious differences between eastern & western countries：1 power distance, 2 individualism vs. collectivism, 5 LT/ST oriented No obvious differences：3 uncertainly avoi

21、dance Advantages§ Represents a starting point for managers trying to figure out how cultures differ and what might mean for management practices§ Results have certain level of accuracyCritics§ Assumes there is a one-to-one correspondence between culture and the nation-state§ Rese

22、arch itself is culturally bound - research team members are westernersown cultural biases shape the research answers§ The informants worked within the single industry, within one company (IBM) - its strong corporate culture influence employees value§ Sample excluded certain social classes

23、(e.g. unskilled manual workers)§ Culture is not static it evolves over time Does Culture Change?v Cultural changeCulture evolves overtimee.g. value system of communist states, Russia, undergoes significant changes as those cts move away from values that emphasize COL and toward those that empha

24、size INDe.g. Japan move toward INDv Economic advancement and globalisation may be important factors in societal change§ Eco advancement- Eco progress COL to INDRicher societies exhibit less need for social and material support structures built on collectives, people are better take care of thei

25、r own needs- Eco factors affect other factors, which in turn affects cultureE.g. urbanization and improvements in edu system, traditional values (religion, family and ct) secular rational value, survival values (eco and physical security) self-expression value (diversity, belonging and participation

26、 in political process)§ Globalization- Culture convergenceTransportation, communication tech, increased trade, rise of multinational co condition for merging culturese.g. Gap in India, MTV everywhere, McDonald in china foster a ubiquitous youth culture- CountertrendsReemphasize cultural roots a

27、nd uniquenesse.g. separatist movement in Quebec, CanadaWhat Do Cultural Differences Mean For International Business Managers?1. It is important to develop cross-cultural literacyv companies that are ill informed about the practices of another culture are unlikely to succeed in that culture v manager

28、s must beware of ethnocentric behavior, or a belief in the superiority of one's own culture2. There is a connection between culture and national competitive advantagev suggests which countries are likely to produce the most viable competitorsv has implications for the choice of countries in whic

29、h to locate production facilities and do businessv Implications for managersI. Cross-cultural literacy· Doing business in diff cultures requires adaption to conform with the value systems and norms of that culture· Cosmopolitan local citizens (polycentric policy)· Against ethnocentris

30、m a belief in the superiority of own ethnic group or culture, disregard other cultures· E.g. American informal nature, German correct people, American offended and shocked· Americans call first name, German taken aback (Hall)· Giving deadlines urgency or importance in US (time scheduling), demanding and undue pressure in Arab (social network)II. Culture and competitive adv§ Implications:o Connection suggests which cts are likely to pr