Chapter 2
Culture
1
Learning Objectives
To define and demonstrate the effect of
culture’s various dimensions on business.
To examine ways in which cultural knowledge
can be acquired and individuals and
organizations prepared for cross-cultural
interaction.
To illustrate ways in which cultural risk poses a
challenge to the effective conduct of business
communications and transactions.
To suggest ways in which businesses act as
change agents in the diverse cultural
environments in which they operate.
2
Expanding Operations Across
Borders
Two distinct tasks
emerge:
to understand
cultural differences
and the ways they
manifest themselves
to determine
similarities across
cultures and exploit
them in strategy
formulation
3
Culture Defined
Culture is an integrated
system of learned
behavior patterns that are
characteristic of the
members of any given
society.
4
Characteristics of Culture
Culture is learned, shared, and
transmitted from one generation to the
next.
Culture can be passed from parents to
children, by social organizations, special
interest groups, the government,
schools, and churches.
Culture is multidimensional, consisting of
a number of common elements that are
interdependent.
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Acculturation
Acculturation is the
process of adjusting and
adapting to a specific
culture other than one’s
own. It is one of the keys
to success in international
operations.
6
High- versus Low-Context
Cultures
High-context culture Low-context culture
context is at least as most of the information
important as what is is contained explicitly in
actually said words
what is not being said what is said is more
can carry more meaning important that what is
than what is said not said
focuses on group focuses on individual
development development
Japan and Saudi Arabia The U.S. is an example
are examples
7
Change Agents
By introducing new products or ideas
and practices, an international business
entity becomes a change agent.
this may shift consumption from one
product to another, or
it may lead to massive social change
Many governments take action to
protect their culture-specific industries.
8
Cultural Universals
Cultural universals are manifestations of
the total way of life of any group of
people.
These include elements such as bodily
adornment, courtship rituals, etiquette,
concept of family, gestures, joking,
mealtime customs, music, personal
names, status differentiation, and trade
customs.
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Elements of Culture
Language (verbal
and nonverbal) Religion
Values and
Attitudes
Manners and
Customs
Material Elements
Social Institutions Education Aesthetics
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The Four Roles of Language
Language aids in information gathering and
evaluation.
Language provides access to local society.
Language capability is increasingly
important in company communications.
Language provides more than the ability to
communicate because it extends beyond
mechanics to the interpretation of contexts
that may influence business operations.
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Nonverbal language
Distinctions must be made in five key topics:
Time
Space
Material Possessions
Friendship Patterns
Business Agreements
12
Dominant Religions
Christianity
Islam
Hinduism
Buddhism
Confucianism
13
Values and Attitudes
Value of U.S. Culture Alternate Value Function Affected
The individual can influence Life follows a preordained Planning and scheduling
the future course
We must work hard to Hard work is not the pre- Motivation and reward
accomplish our objectives requisite for success; wisdom, system
luck, and time are also required
Commitments should be A commitment may be Negotiating or
honored super- bargaining
One should effectively use seded by aare
Schedules conflicting
important but only Long and short range
one’s time inrequest
relation to other priorities planning
A primary obligation of the The individual employee has a Loyalty, commitment,
employee is to the organization primary obligation to the family and motivation
The best qualified person should Family issues and friendship Employment, promotions
be given the position available can determine employment recruiting, selection
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Manners and Customs
Potential ways in which negotiators
may not be prepared:
the understanding of different ways of
thinking
attention to the necessity to save face
knowledge and appreciation of the host
country
recognition of the decision-making process
and the role of personal relations and
personalities
the allocation of time for negotiations
15
Material Elements
Material culture refers to the results of
technology and is directly related to how
a society organizes its economic activity.
It is manifested in the availability and
adequacy of the basic economic, social,
financial, and marketing infrastructure
for the international business in a
market.
16
Material Elements Chart
Material Culture
Financial and
Economic Social
Marketing
Infrastructure Infrastructure
Infrastructure
transportation energy housing health banks research firms
communications education
17
Aesthetics
Good taste is
expressed through
colors, form, and
music.
The meanings of
colors and symbols
vary from country
to country.
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Education
Education, either
formal or informal,
plays a major role in
the passing on and
sharing of culture.
International firms
need to understand
the varying
emphases on
particular skills and
the overall level of
education provided.
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Social Institutions
Social stratification is the division of a
particular population into classes.
Reference groups provide the values and
attitudes that influence behavior.
Primary reference groups include the
family and coworkers.
Social organization determines the roles
of managers and subordinates and how
they relate to each other.
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Cultural Knowledge
Cultural knowledge can be defined by the way
it is acquired:
objective or factual information is obtained
through communication, research, and
education.
experiential knowledge can be acquired only
by being involved in a culture other than one’s
own.
Interpretive knowledge is the ability to
understand and fully appreciate the nuances
of different cultural traits and patterns.
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Acquiring International Experience
Manager’s ranking of factors involved in
acquiring international expertise
Factor Considered Critical Considered Important
Assignments overseas 85% 9%
Business travel 83 17
Training programs 28 57
Non-business travel 28 54
Reading 22 72
Graduate courses 13 52
Precareer activities 9 50
Undergraduate courses 1 48
22
Cross-Cultural Behavior Model
Strategic
Change
Opinion
Agent
Leadership
Cognitive Adoption
Search Adoption
Tendency
Communication
about Propensity
Innovation to Change
Evaluation
Cognitive
of
Distortion
Innovation
Cultural
Lifestyle
Consequences
23
Cross-Cultural Behavior Model
The key variable of the
model is propensity to
change, which is a
function of three
constructs:
cultural lifestyle
change agents
communication about the
innovation
24
Cultural Dimension Scores for 12 countries
100 100
Japan U.S.A
France Netherlands
Great Britain
Mexico
Brazil
Uncertainty Germany Germany
Arab Countries Individualism
Avoidance France
Netherlands West Africa
Japan
50 50
Brazil
U.S.A Indonesia Arab Countries
Great Britain Mexico
Hong Kong
Hong Kong
West Africa
Indonesia
0 50 100 50 0
Power Distance Masculinity 25
Dimensions of Culture
Differences in cultural lifestyle can be
explained by:
individualism
power distance
uncertainty avoidance
Masculinity
Asian countries tend to have high
uncertainty avoidance and low masculinity.
Western countries tend to have low
uncertainty avoidance and high
masculinity.
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Self Reference Criterion
Self reference criterion is the unconscious
reference to one’s own cultural values and
is the root of most international business
problems.
Suggestions to reduce cultural bias include:
Define the problem or goal in terms of domestic cultural
traits, habits, or norms.
Define the problem or goal in terms of the foreign
cultural traits, habits, or norms.
Isolate the self-reference criterion influence in the
problem, and examine it to see how it complicates the
problem.
Redefine the problem without the self-reference
criterion influence, and solve for the optimum-goal
situation
27
Cross-Cultural Training
Cultural training
programs should include:
culture-specific information
general cultural information
on values, practices, and
assumptions
self-specific information
that identifies one’s own
cultural paradigm
28
Cross-Cultural Training (cont.)
Additional forms of
training include:
mentoring
area studies programs
cultural assimilator
programs, in which
trainees must respond to
scenarios of specific
situations in a particular
country
sensitivity training
field experience
29
Tips for Making Culture Work
for Business Success
Embrace local culture
Build relationships
Employ locals to gain cultural
knowledge
Help employees understand you
Adapt products and practices to
local markets
Coordinate by region
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