INTERNATIONAL
BUSINESS
Cultural
Considerations
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INTRODUCTION | In most International
Business textbooks there is some reference to terms which originally were
developed by the cultural anthropologist Dr. Geert H. Hofstede. Hofstede
is not specifically mentioned in the former C44 text so we will provide
information about him below.
Dr. Geert H. Hofstede, born 1928 in the Netherlands. He is famous for having done a study of the international cultural aspects of the employees of a large corporation - the intention was that we would be able to find some generalizations about particular cultures that would help us understand them, even if we did not have the time to become experts on all aspects of the particular culture. |
"Between 1967 and 1973 Professor
Geert Hofstede surveyed over 100,000 IBM employees in 49 different
countries about their preferences in terms of work-related values. The
result was a number of seminal works on cultural values and differences
published during the 1980s and 1990s. These have had a profound influence
on the field and practice of international management - in any undergraduate
course or management seminar on the challenges of cross-national management
there will be substantial reference to Hofstede."
http://geert-hofstede.international-business-center.com/gooderham.shtml © 2003 - 2004 international-business-center.com - all rights reserved - in Jan 2005, the email contact link on their website was not working Hofstede's four dimensions
of cultural variability, commonly referred to as "Hofstede's Dimensions."
These include: Uncertainty Avoidance, Power Distance, Masculinity-Femininity,
Individualism-Collectivism, Confucian Dynamism. These dimensions were first
discussed in his 1980 publication, "Culture's consequences: International
differences in work-related values."
Hofstede was described on
a web site of the University of Hawaii
see instead http://geert-hofstede.international-business-center.com/index.shtml An example of Hofstede mentioned
in the context of research on cultural diversity and the fact that national
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These are Hofstede's 4 dimensions
with which one may analyze the culture of a region
1.Uncertainty Avoidance 2.Power Distance 3.Masculinity-Feminity 4.Individualism- Collectivism |
1. Uncertainty Avoidance | "This refers
to the degree to which a society prefers predictability, security and stability.
In societies with high scores on this index there is an emotional need
for rules, written and unwritten."
http://geert-hofstede.international-business-center.com/gooderham.shtml What this means:
A culture that is very afraid of uncertainty can also be sold things based on a different blend of images in print and TV commercials. For example, tires may be sold in one region based on their safety rating and ability to brake in bad weather, in another region they may be marketed based on their "cool looks" and aggresive tread pattern for SUVs. |
2. Power Distance | "This dimension
indicates the extent to which a society expects and accepts a high degree
of inequality in institutions and organisations. In a country with a large
Power Distance, organisations are characterised by formal hierarchies and
by subordinates who are reluctant to challenge their superiors. The boss
is very much the boss."
http://geert-hofstede.international-business-center.com/gooderham.shtml What this means:
For people selling consumer products internationally, knowledge of the Power Distance in a country may apply to who you select as actors to feature various consumer products and the words you use to decribe them - particularly if a product may be considered to be used by the lower class of people, or upper class. These considerations would apply to products such as luxury electronic consumer items or expensive watches or high priced vehicles. |
3. Masculinity-Feminity | "Masculine societies
value assertiveness, competitiveness and materialism as opposed to the
‘feminine’ values of relationships and the quality of life."
http://geert-hofstede.international-business-center.com/gooderham.shtml What this means:
For people selling consumer products internationally, it is important, when you are adapting your promotional mix, to take in to account the degree to which the people in the target market are similar to, or different from, the Masculinity-Feminity distance you have in your home market. For example, it may be acceptable for a women in a short dress and bare arms to caress the leather seats in a Cadillac TV commercial in North America, but you would not be advised to use this in an Arabic speaking country that had a large Muslim population since the appearance of the women's clothing would be considered contrary to their cultural norms. For example, it may be attractive to have a female actress posing as a lawyer in a IT commercial marketing some IT product, but this would not be "believable" in some regions were female access to post-graduate university education is still not common. |
4. Individualism- Collectivism | "This dimension
relates to the extent to which people prefer to take care of themselves
and their immediate families rather than being bound to some wider collectivity
such as the extended family or clan. In terms of organisational life, in
highly individualistic societies there will be a sharp distinction between
work and personal life."
http://geert-hofstede.international-business-center.com/gooderham.shtml What this means:
For example, if you wanted to market a new cell phone feature in Beijing, you would create a TV commercial showing how the person shared this with all their friends, if you wanted to market a new cell phone feature in New York, you'd show an individual and how they used it to save time or money. |
Hofstede Outdated? | "There are critical
reasons to argue that Hofstedes model is dated and may be inapplicable
to the contemporary international business environment. The first reason
is globalization the broadening geographical inter-linkages of products,
markets, firms and production factors, with a large portion of each derived,
generated, or available in more countries and regions according to Papaconstantinou,
G.(1995)."
http://www.ukessays.com/essays/business
1. Hofstede's study and conclusions
were based on studying the employees of IBM operating in many countries
in 1980.
2. The "Technological Environment' and the World Wide Web have made significant differences in the way people find out information about international business and conduct it. 3. Power Distance - the existence of the WWW has allowed people to communicate quickly and extensively through all levels of rankings in an organization. The people who work in I.T. and e-commerce and social media have a different way of regarding rankings and levels of authority which is very egalitarian compared to the deferential way people communicated in the 1980's and earlier. 4. Gender issues in 2015
are significantly different than 35 years ago in 1980.
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Hofstede is perhaps the
best known cultural anthropologist (in the context of applications for
understanding international business) but he is not the only person who
dealt with these issues. Dr. P.S. Raju, who serves as a Professor at University
of Louisville, Kentucky also developed a way of looking at the way
culture effects behaviour.
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In this page, some sections
are quoted from
http://geert-hofstede.international-business-center.com/gooderham.shtml
the authors were PAUL N
GOODERHAM, and ODD NORDHAUG,Norwegian School of Economics and Business
Administration
© 2003 - 2004 international-business-center.com
- all rights reserved
- in Jan 2005, the email
contact link on their website was not working
permission to quote Dr. Raju
was given in an email from Dr. Raju dated 2005 Jan 6th
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