3 Cultural DimensionsUsed to describe specific aspects of culture and assist nations doing business with differing cultural valuesNote these dimensions reflect a society’s tendencies rather than a particular individual
4 1) Power Distance (PDI)Used to measure how the difference in power between people is perceivedHigh Power Distance – Found in cultures where some people are considered superior because of social status, gender, race, age, education, birth, wealth, personal achievements or family background (i.e. Mexico, Indonesia, & India)Low Power Distance – found in cultures who assume equality among people and focus on earned status rather than recognized status (i.e. Austria, Israel, and Canada)
5 2) Uncertainty Avoidance (UAI) The way different cultures adapt to changeHigh Uncertainty Avoidance – Countries/ cultures that uphold formal rules and rituals, and hold strong religious convictions – High conformity and little tolerance of outsiders (i.e. Saudi Arabia, Mexico, Japan)Low Uncertainty Avoidance – Cultures who value risk-taking, seek change, and have a high tolerance for differences – Much easier to establish business relations in these countries (i.e. Canada, Sweden & Singapore)
6 3) Masculinity versus Femininity (MAS) Masculinity - Refers to the degree to which a culture values assertiveness, competitiveness, ambition and the accumulation of material goods. (i.e. Japan, and Mexico)Femininity – the degree to which cultures value nurturing, family relationships, and social support systems. Value co-operation and solidarity with those less fortunate. (i.e. Scandinavia, Thailand, and Portugal)
7 Masculinity versus Femininity (MAS) Most western cultures do not have such rigidly defined roles however, many cultures encourage distinct gender rolesHofstede’s terms refer to the degree to which these culturally mandated gender roles operate for men and women within the country.
8 Individualism versus Collectivism (IDV) Refers to the extent to which people are expected to make their own decisions regarding their choice of education, job, or even life partner.Highly individualistic countries promote personal decision making and defending themselves (i.e. Canada, USA and Australia)Collectivist cultures value the greater good, and many of their futures have been decided by government, church or family (i.e. Cuba, China)
9 Orientation (LTO)Long-term Orientation – countries who value thrift and perseverance to achieve long-term goals, usually so distant that only future generations will appreciate them. (Respect tradition and a hard work ethic)Short-Term Orientation – cultures where ``now`` is favoured over ``then``. These cultures are results oriented, looking at daily profit figures and yearly annual reports and make business decisions based on short term changes in the market