Rules of Thumb for Cross Culture Business
Be prepared Slow down Establish trust Understand the importance of language Respect the culture Understand the components of culture
What is Culture?
Culture
The sum total of beliefs, rules, techniques,
institutions, and artifacts that characterize human populations. Consists of learned patterns of behavior common to the members of a given society. The unique lifestyle of a particular group of people.
Ethnocentricity
Considering your culture superior to all others
Living with Other Cultures
First, realize that there are many different cultures. Then, learn the characteristics of those cultures. Spend a lifetime in a country. Undergo an extensive, highly sophisticated training program that covers the main characteristics of a culture.
Components of
Culture
Aesthetics Attitudes and beliefs Religion Material Culture Education
Language Societal organization Legal characteristics Political structures
Religious Population of the World
Insert Figure 6.1
Material Culture
Refers to all human-made objects Concerned with how people make things and who makes what and why. Technology Mix of usable knowledge that society applies and directs toward attainment of cultural and economic objectives
Material Culture - Technology
Importance to International Companies Enables a firm to be competitive in world markets. Can be sold, or be embodied in the companys products. Can give a firm confidence to enter a foreign market.
Enables the firm to obtain better than usual conditions for a foreign market investment. Enables a company with only a minority equity position to control a joint venture. Can change the international division of labor. Is causing major firms to form competitive alliances.
Material Culture - Technology
Cultural Aspects of Technology
Includes skills in marketing, finance, and management People not always ready to adapt to changes technology brings
Appropriate Technology
Choose the technology that most closely fits the society using it
Can be labor-intensive, intermediate or capitalintensive
Technological Dualism
The side-by-side presence of technologically advanced and technologically primitive production systems.
Bommerang Effect
Technology sold to copanies in another nation used to produce competing goods
Understanding National Culture
Hofstedes Dimensions of Culture
Individualism versus Collectivism Large versus Small Power Distance Strong versus Weak Uncertainty Avoidance Masculinity versus Femininity
Power distance
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
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
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
This dimension looks at the relationship between gender and work roles
Work related values for twenty countries
Problems with Hofstedes findings
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
Culture is not a constant; it evolves over time Since 1960s Indian values toward the role of women are changing. Japan moves toward greater individualism in the workplace Effects of globalization