Cultural Dynamics What is culture? Cultural values - Hofstede Business customs - adapting to culture

What is culture? the total range of activities and people. the combination of learned meanings, values, norms and customs shared by a society

How do we get culture? learned through the process of socialization social learning results in shared expectations, norms norms are used to evaluate objects, people and events Cultures & subcultures

Context Cultures High-context culture Low-context culture social context affects the meaning of the message; context is as important (or more important) as what is said. Examples: Japan and Saudi Arabia Low-context culture is where the meaning of the message is explicitly expressed by the words; social context has less effect. Example: North America

Factual vs. Experiential Knowledge Factual Knowledge -- facts & statistics Experiential Knowledge -- nuances surrounding facts & statistics; interpreted within the context of the culture

Elements of Culture Elements Language verbal non-verbal Religion & Belief systems Values and Attitudes Manners and Customs Material Elements Aesthetics Education Social Institutions

Cultural Values - Hofstede’s Research Individualism/Collectivism Power Distance Uncertainty Avoidance Masculinity/Femininity Need Gratification

Individualism/Collectivism Extent to which a country values independence of self vs. loyalty to others Example: Japan: Collectivist – important to know one’s place; don’t shame family, avoid standing out U.S.: Individualist – express yourself (Cingular Wireless) & your opinions; show status (American Express); be an individual (Dr. Pepper)

Power Distance High PD: A society’s expectation that power/status is distributed unequally Example: India: High PD, caste system, hierarchy; strong dependence of lower social classes on higher classes; respect for authority U.S.: Low PD, people are created equal; ok to question or even defy authority

Masculinity/Femininity Values for achievement/success (masculinity) vs. values for caring & quality of life (femininity) Examples: Scandinavian countries: feminine – not supposed to hurt feelings; respect the loser, or underdog U.S.: masculine – winning important, in your face; competition and aggressiveness count

Uncertainty Avoidance The extent to which uncertainty and ambiguity are considered threatening Examples: Germany: high uncertainty avoidance – a structured education system with lots of rules, experts specialize in distinct areas with recognized qualifications U.S.: low uncertainty avoidance – liberal arts and general business degrees are valued; anyone can be an expert because there are no rules to define expertise

Long-term Orientation The extent to which a country exhibits pragmatic planning for future vs. “live for the moment” short term perspective Examples: China: LT orientation – values perseverance, thrift, respect for tradition U.S.: ST orientation – values immediate gratification; initiative and entrepreneurship; innovation

Hofstede’s Cultural Dimensions U.S. Values Individualism: Independence Low power distance: Equal opportunity Masculinity: Power, success, winning Low uncertainty avoidance: Obsession with change; new & better Short term orientation: Credit card culture Japanese Values Collectivist: group harmony High power distance: status, loyalty to superiors Masculinity: power, success (but don’t flaunt it) High uncertainty avoidance: structure, job hierarchy Long term orientation: cash culture De Mooij, Marieke (1998). Global marketing and advertising: Understanding Cultural Paradoxes. Thousand Oaks, CA: Sage.

Cultural Sensitivity & Adaptation Levels of Adaptation Imperatives - customs that must be recognized and accommodated Adiaphora - customs that are optional but still appreciated Exclusives - customs that outsiders should not attempt to adopt

Methods of Doing Business Different cultures have different approaches to these concepts. Level of authority Management outlook Communications Time and tempo

Acculturation Adjusting or adapting to a specific culture other than one’s own … and “one of the keys to success in international operations.

Success and Culture Embrace local culture. Build relationships. Employ locals to gain cultural knowledge. Help employees understand you. Adapt products and processes to local markets. Coordinate by region.