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Slide 5.1
Wall, Minocha and Rees, International Business, 3rd Edition, © Pearson Education Limited 2010
International sociocultural environment
1
Slide 5.2
Wall, Minocha and Rees, International Business, 3rd Edition, © Pearson Education Limited 2010
Definitions of culture • ‘Culture should be regarded as the set of
distinctive spiritual, material, intellectual and emotional features of society or a social group, and that it encompasses, in addition to art and literature, ways of living together, value systems, traditions and beliefs’ (UNESCO 2002).
• Culture… is that complex whole which includes knowledge, belief, art, morals, law, custom, and any other capabilities and habits acquired by man as member of society. (Encyclopædia Britannica 2000).
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Slide 5.3
Wall, Minocha and Rees, International Business, 3rd Edition, © Pearson Education Limited 2010
• http://www.youtube.com/watch?v=8tIUilYX56E&feature=BFa&list=PL636501B39E70CBA8&index=5
• 4 min high & low Contexts
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Slide 5.4
Wall, Minocha and Rees, International Business, 3rd Edition, © Pearson Education Limited 2010
High context cultures – Edward Hall
• Define personality more in terms of the group than the individual
• Low boundaries in terms of personal space• Initiate and receive more bodily contact when
talking• Are polychronic, i.e. time has non-linear
aspects so punctuality and scheduling are low priority.
4
Slide 5.5
Wall, Minocha and Rees, International Business, 3rd Edition, © Pearson Education Limited 2010
Low context cultures – Edward Hall
• Are more individualistic than group • High boundaries in terms of personal space• Convey more information via explicit codes
rather than non-verbal language• Are monochronic, i.e. time is linear so
punctuality and scheduling are high priority.
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Slide 5.6
Wall, Minocha and Rees, International Business, 3rd Edition, © Pearson Education Limited 2010
Hofstede’s five cultural dimensions
• Individualism (versus collectivism)• Power distance• Uncertainty avoidance• Masculinity/Femininity• Long-term orientation (versus short-
term).
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Slide 5.7
Wall, Minocha and Rees, International Business, 3rd Edition, © Pearson Education Limited 2010
Societies - Hofstede• United States, the United Kingdom,
Australia, Canada, New Zealand and the Netherlands tend to be relatively individualist in their values.
• Mexico, Greece, Hong Kong, Taiwan, Peru, Singapore, Colombia and Pakistan tend to be relatively collectivist in their values.
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Slide 5.8
Wall, Minocha and Rees, International Business, 3rd Edition, © Pearson Education Limited 2010
Power distance - Hofstede
• Philippines, Mexico, Venezuela, India, Singapore, France, Spain, Japan and Brazil tend to be relatively power respecting (large power distance).
• Austria, Israel, Denmark, New Zealand, Ireland, Great Britain, Germany, Australia, Canada and the USA have small power distance.
• http://www.youtube.com/watch?v=jU2gp3QjnNU8
Slide 5.9
Wall, Minocha and Rees, International Business, 3rd Edition, © Pearson Education Limited 2010
Uncertainty Avoidance - Hofstede
• Nordic and Anglo-Saxon countries as well as most other Asian and sub-Saharan countries exhibit weak uncertainty avoidance.
• Latin, Mediterranean and Central and Eastern European countries, Japan, South Korea and Pakistan exhibit strong uncertainty avoidance.
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Slide 5.10
Wall, Minocha and Rees, International Business, 3rd Edition, © Pearson Education Limited 2010
Masculinity/Femininity - Hofstede
• Masculinity refers to cultures in which the social gender roles are clearly distinct; men are supposed to be more assertive and acquisitive, valuing material possessions and money.
• Femininity refers to cultures in which social gender roles overlap; both men and women are supposed to be modest, tender and concerned with the quality of life.
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Slide 5.11
Wall, Minocha and Rees, International Business, 3rd Edition, © Pearson Education Limited 2010
Long-term orientation
• Long-term orientation means focusing on the future, delaying immediate gratification by practising persistence and thriftiness. • E.g. China, Hong Kong, Taiwan, Japan
and South Korea…
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Slide 5.12
Wall, Minocha and Rees, International Business, 3rd Edition, © Pearson Education Limited 2010
• Short-term orientation means a greater focus on the present and a more immediate gratification of need, such as spending to support current consumption even if this means borrowing money.• E.g. Pakistan, Philippines and Bangladesh
and all Western countries…
12
Short-term orientation
Slide 5.13
Wall, Minocha and Rees, International Business, 3rd Edition, © Pearson Education Limited 2010
Impacts of different cultural dimensions at the workplace (1)
Cultural dimension Impacts at the workplace
Individualist Same value standards apply to all: universalism
Other people seen as potential resources
Task prevails over relationship
Calculative model of employer–employee
relationship
Collectivist Value standards differ for in-group and out-
groups: particularism
Other people seen as members of their group
Relationship prevails over task
Moral model of employer–employee relationship13
Slide 5.14
Wall, Minocha and Rees, International Business, 3rd Edition, © Pearson Education Limited 2010
Impacts of different cultural dimensions at the workplace (2)Cultural dimension Impacts at the workplace
Large power distance (power respect) Hierarchy reflects on existential
inequality of roles
Subordinates expect to be told what to
do
Ideal boss is a benevolent autocrat
(good father)
Small power distance (power tolerance) Hierarchy means an inequality of roles,
established for convenience
Subordinates expect to be consulted
Ideal boss is a resourceful democrat
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Slide 5.15
Wall, Minocha and Rees, International Business, 3rd Edition, © Pearson Education Limited 2010
Impacts of different cultural dimensions at the workplace (3)Cultural dimension Impacts at the workplace
Weak uncertainty avoidance (uncertainty
acceptance)
Dislike of rules, written or unwritten
Less formalisation and standardisation
Readiness to accept change
Strong uncertainty avoidance Emotional need for rules, written or unwritten
More formalisation and standardisation
Reluctance to accept change
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Slide 5.16
Wall, Minocha and Rees, International Business, 3rd Edition, © Pearson Education Limited 2010
Impacts of different cultural dimensions at the workplace (4)Cultural dimension Impacts at the workplace
Masculinity (aggressive goal behaviour) Assertiveness appreciated
Oversell yourself
Stress on careers
Decisiveness
Femininity (passive goal behaviour) Assertiveness ridiculed
Undersell yourself
Stress on life quality
Intuition
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Slide 5.17
Wall, Minocha and Rees, International Business, 3rd Edition, © Pearson Education Limited 2010
Power distance and international business practice• E.g. a firm from a country with a small
power distance, such as the UK or US when negotiating in a joint venture, may send a team of experts who are relatively junior. If this team is sent to a large power distance (power-respecting) culture, such as India, this may be viewed as an insult.
• http://www.youtube.com/watch?v=BrJTf97Ev8o&feature=rellist&playnext=1&list=PL636501B39E70CBA8
• 5 min17
Slide 5.18
Wall, Minocha and Rees, International Business, 3rd Edition, © Pearson Education Limited 2010
Uncertainty avoidance and international business practice• E.g. Japanese firms, such as Toyota & Honda
operating in uncertainty accepting countries
such as Canada and the United States have
been forced to modify their pay and promotion
policies because North American workers are
more oriented towards an individualistic ‘pay me
what I’m worth’ attitude and are less worried
about job insecurity.18
Slide 5.19
Wall, Minocha and Rees, International Business, 3rd Edition, © Pearson Education Limited 2010
Interpreting high-context communications
What the British say What they really mean
Not bad Good, or very good
Quite good A bit disappointing
Interesting That is interesting, or It is interesting that you think it is
interesting – it seems rather boring to me!
Oh, by the way,… I am about to get to the primary purpose of our
discussion
I hear what you say I disagree and do not wish to discuss it any further
With the greatest respect… I think that you are wrong (or a fool)
Perhaps we could consider some other opinions I don’t like your ideas19
Slide 5.20
Wall, Minocha and Rees, International Business, 3rd Edition, © Pearson Education Limited 2010
Video break• http://www.youtube.com/watch?v=I0AKSSAdsHQ&feature=
related• 1.5 min Mistakes of Americans in Business
• http://www.youtube.com/watch?v=LZVzMQGc6cY&feature=related
• 6 min Selling to Hispanics…Multicultural marketing
• http://www.youtube.com/watch?v=U9XoD9V9Bvg&feature=related
• 6 min 10 Tips on doing business in Arab cultures20
Slide 5.21
Wall, Minocha and Rees, International Business, 3rd Edition, © Pearson Education Limited 2010
Four key strategies for multicultural teams
• Brett et al. (2006) put forth four key strategies.• Adaptation: team members adapt practices or attitudes
themselves, without changing the team membership or the tasks allocated.
• Structural intervention; formally re-organising the team or redistributing tasks.
• Managerial intervention: leader(s) intervene to establish norms of behaviour and decision making which take account of the multicultural characteristics of the team.
• Exit: removing one or more members from the team.
21
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