ICC Presentation

INTERNATIONAL INTERNATIONAL BUSINESSBUSINESS

UNDERSTANDING THE CROSS-UNDERSTANDING THE CROSS-CULTURAL FACTOR CULTURAL FACTOR

Overview of LectureOverview of LecturePart I Part I Culture and International BusinessPart IITheories & Models

- Kluckholm and Strodbeck (Cultural Orientation)

- Hall (Cultural Context) - Laurent (Culture, Status and Function) - Hofstede (and the Workplace) - Trompenaars (Consultatn’s Contribution)

Part IIIPart IIICross-cultural Management Communication

- Appropriate Business Communication Across Cultures

- A Transaction Model

PART IPART I

Culture and InternationalCulture and International Business Business

Why study intercultural Why study intercultural communication in business communication in business

contexts?contexts?

http://www.ess.uci.edu/~oliver/silk.html

Difficulties in developing globalized Difficulties in developing globalized products:products:

Diversity of taste and demandDiversity of taste and demandHoecklin, L. 1995. Hoecklin, L. 1995. Managing Cultural Managing Cultural

Differences: Strategies for Competitive Differences: Strategies for Competitive Advantage, Advantage, The Economist Intelligence The Economist Intelligence Unit / Addison Wesley. Unit / Addison Wesley.

Diversity of worldwide industry standardsDiversity of worldwide industry standards Difficulty in managing global companies Difficulty in managing global companies

and the lack of agreement on and the lack of agreement on organizational structures and systemsorganizational structures and systems

Subsidiaries need to develop their own Subsidiaries need to develop their own abilities, talents and local knowledgeabilities, talents and local knowledge

Think Globally. Act Locally.Think Globally. Act Locally.

~ Derek Torrington, ~ Derek Torrington, 19941994

Where does Where does culture culture fit fit into the business into the business

equation?equation?

Business Business EnvironmentEnvironment

Decisions taken by a company are usually Decisions taken by a company are usually influenced by:influenced by:

•internal factorsinternal factors such as strategy, goals, such as strategy, goals, scope of operations, internal resources scope of operations, internal resources including management systems and including management systems and organizational cultureorganizational culture

•and factors in the and factors in the externalexternal business business environment environment

External Factors External Factors

Mead, Richard, 1998. Mead, Richard, 1998. International International Management: Cross cultural Management: Cross cultural

dimensionsdimensions. 2. 2ndnd Edition. Blackwell. Edition. Blackwell. Pp 15. Pp 15.

Cross-cultural Management Skills

•understand the nature of culture and how it influences behaviour in the workplace

•learn about specific cultures – the other’s and your own

•recognize the differences between cultures

•Implementation of structures

Beamish, P. W. and Calof, J. Beamish, P. W. and Calof, J. L., 1989. International L., 1989. International business education: a business education: a

corporate view. corporate view. Journal of Journal of International Business International Business

Studies, Studies, Fall, pp 553-64.Fall, pp 553-64.

Ignoring Cultural Diversity

This policy is followed when:This policy is followed when:•the management lack skills and the management lack skills and resources to handle the diversityresources to handle the diversity

•the task offers no opportunities for the task offers no opportunities for deriving positive effects from deriving positive effects from diversitydiversity

•the negative effects outweigh the the negative effects outweigh the positive effectspositive effects

•refusing to recognize diversity seems refusing to recognize diversity seems likely to minimize the negative effectslikely to minimize the negative effects

PART II PART II

Theories and ModelsTheories and Models

1. Kluckhohn and 1. Kluckhohn and Strodtbeck on Cultural Strodtbeck on Cultural

OrientationsOrientations

Kluckhohn, F. R. and Kluckhohn, F. R. and Strodtbeck, F. L. 1961. Strodtbeck, F. L. 1961.

Variations in Value Variations in Value Orientations, Orientations, Peterson, New Peterson, New

York.York.

Cultural OrientationsCultural OrientationsOrientationsOrientations

1.1. What is the nature of What is the nature of people?people?

2.2. What is the person’s What is the person’s relationship to relationship to nature?nature?

3.3. What is the person’s What is the person’s relationship to other relationship to other people?people?

Range of VariationsRange of Variations

Good Good (changeable/unchangeable)(changeable/unchangeable)

EvilEvilA mixture of good and evilA mixture of good and evil

Dominant Dominant In harmonyIn harmonySubjugationSubjugation

Lineal (hierarchical)Lineal (hierarchical)Collateral (collectivist)Collateral (collectivist)IndividualistIndividualist

Cultural OrientationsCultural OrientationsOrientationsOrientations4. What is the modality 4. What is the modality

of human activity?of human activity?

5. What is the temporal 5. What is the temporal focus of human focus of human activity?activity?

6. What is the 6. What is the conception of space?conception of space?

Range of VariationsRange of VariationsDoingDoingBeing Being ContainingContaining

FutureFuturePresentPresentPastPast

PrivatePrivatePublic Public MixedMixed

Critique of the Critique of the Kluckhohn-Strodtbeck Kluckhohn-Strodtbeck

ModelModelWeaknessesWeaknesses

• the authors were not centrally concerned the authors were not centrally concerned with management studies and did not with management studies and did not describe the implications for managementdescribe the implications for management

•the orientations and variations are not the orientations and variations are not precisely definedprecisely defined

• interpretations are bound to be subjectiveinterpretations are bound to be subjective

StrengthStrengthss • cultures can be compared along distinct cultures can be compared along distinct

dimensionsdimensions

•comparative models apply to cross-comparative models apply to cross-cultural managementcultural management

•analysis of predominant variations within analysis of predominant variations within the national culture does not accurately the national culture does not accurately predict: - the values of sub-cultural predict: - the values of sub-cultural minorities; the values practiced in different minorities; the values practiced in different industries and organizations and the industries and organizations and the values practiced in exceptional cases. values practiced in exceptional cases.

2. Edward T. Hall and 2. Edward T. Hall and Cultural ContextsCultural Contexts

Hall, E. T., 1976. Hall, E. T., 1976. Beyong Beyong Culture, Culture, Anchor Press / Anchor Press /

DoubledayDoubleday

Characteristics of High-Characteristics of High-Context culturesContext cultures

long lasting relationshipslong lasting relationships

communication is economical, fast and communication is economical, fast and efficientefficient

wider range of communicative expressionswider range of communicative expressions

people in authority are personally people in authority are personally responsible for the actions of subordinatesresponsible for the actions of subordinates

In high-context cultures In high-context cultures ……

Agreements between persons are Agreements between persons are spoken rather than writtenspoken rather than written

Insiders and Outsiders are Insiders and Outsiders are distinguisheddistinguished

Cultural patterns are ingrained and Cultural patterns are ingrained and relatively slow to changerelatively slow to change

Characteristics of Low-Characteristics of Low-Context CulturesContext Cultures

shorter relationshipsshorter relationships

messages are made explicit messages are made explicit

authority is diffusedauthority is diffused

agreements are written rather agreements are written rather than spokenthan spoken

In low-context cultures…In low-context cultures…

Insiders and Outsiders are less Insiders and Outsiders are less closely distinguished closely distinguished

Cultural patterns are relatively Cultural patterns are relatively fast to changefast to change

Critique of Hall’s Critique of Hall’s ModelModel

qualitative insights rather than qualitative insights rather than quantitative dataquantitative data

useful in understanding how useful in understanding how members of different cultures members of different cultures develop business relationshipsdevelop business relationships

3. André Laurent: 3. André Laurent: Culture, Status & Culture, Status &

FunctionFunction

Laurent, A., 1983. The cultural Laurent, A., 1983. The cultural diversity of Western conceptions diversity of Western conceptions of management, of management, Internnational Internnational

Studies of Management and Studies of Management and Organization, Organization, 13 (1-2), pp 75-96.13 (1-2), pp 75-96.

Adler, N.J., Campbell, N. C., and Adler, N.J., Campbell, N. C., and Laurent, A., 1989. In search of Laurent, A., 1989. In search of appropriate methodology: from appropriate methodology: from outside the People’s Republic outside the People’s Republic

of China, of China, Journal of Journal of International Business StudiesInternational Business Studies, ,

Spring, pp 61-74Spring, pp 61-74

Laurent’s 4 Laurent’s 4 parametersparameters

1.1. Perceptions of the organization Perceptions of the organization as political systemsas political systems

2.2. Authority systemsAuthority systems

3.3. Role formulation systems and Role formulation systems and

4.4. Hierarchical relationship Hierarchical relationship systemssystems

3 points:3 points:

• how far the manager carries his/her how far the manager carries his/her status into the wider context outside status into the wider context outside the workplacethe workplace

•the manager’s capacity to bypass the manager’s capacity to bypass levels in the hierarchylevels in the hierarchy

•the manager as expert in contrast to the manager as expert in contrast to the manager as facilitatorthe manager as facilitator

““through their professional through their professional activity, managers play an activity, managers play an important role in society”important role in society”

DenmarkDenmark 32%32% UKUK 40%40% NetherlandsNetherlands 45%45% GermanyGermany 46%46% SwedenSweden 54%54% USAUSA 52%52% SwitzerlandSwitzerland 65%65% ItalyItaly 74%74% FranceFrance 76%76%

~ Laurent, 1983:80~ Laurent, 1983:80

““in order to have efficient work in order to have efficient work relationships, it is often necessary to relationships, it is often necessary to

bypass the hierarchical line”bypass the hierarchical line” SwedenSweden 22%22% UKUK 31%31% USAUSA 32%32% DenmarkDenmark 37%37% Netherlands Netherlands 39%39% SwitzerlandSwitzerland 41%41% Belgium Belgium 42%42% FranceFrance 42%42% Germany Germany 46%46% ItalyItaly 75%75% ChinaChina 66%66%

~ Laurent, 1983:86 and Adler et all, ~ Laurent, 1983:86 and Adler et all, 1989:641989:64

““it is important for a manager to have at hand it is important for a manager to have at hand precise answers to most of the questions that precise answers to most of the questions that

his subordinates may raise about their work”his subordinates may raise about their work” SwedenSweden 10%10% NetherlandsNetherlands 17%17% USAUSA 18%18% DenmarkDenmark 23%23% UKUK 27%27% SwitzerlandSwitzerland 38%38% BelgiumBelgium 44%44% GermanyGermany 46%46% FranceFrance 53%53% ItalyItaly 66%66% IndonesiaIndonesia 73%73% ChinaChina 74%74% JapanJapan 78%78%

~ Adler et al, 1989:69~ Adler et al, 1989:69

4. Geert Hofstede: 4. Geert Hofstede: Culture & the Culture & the

WorkplaceWorkplaceHofstede, G., 1980. Hofstede, G., 1980. Cultures Consequences: Cultures Consequences:

International Differences in Work-related International Differences in Work-related Values, Values, SageSage

Hofstede, G., 1984. Hofstede, G., 1984. Cultures Cultures Consequences: International Differences in Consequences: International Differences in Work-related Values, Work-related Values, abridged edn, Sage, abridged edn, Sage,

Beverly HillsBeverly Hills

Hofstede, G., 1991. Hofstede, G., 1991. Cultures and Cultures and Organizations: Software of the Mind, Organizations: Software of the Mind,

McGraw-HillMcGraw-Hill

Hofstede’s ModelHofstede’s Model

•power distance – the distance between power distance – the distance between individuals at different levels of a individuals at different levels of a hierarchy in an organization. hierarchy in an organization.

•uncertainty avoidance – more or less uncertainty avoidance – more or less need to avoid uncertainties about the need to avoid uncertainties about the futurefuture

• individualism vs collectivism – the individualism vs collectivism – the relations between the individual and relations between the individual and his / her fellowshis / her fellows

•masculinity vs femininity – the division masculinity vs femininity – the division of roles and values in society. of roles and values in society.

Critique of Hofstede’s Critique of Hofstede’s ModelModel

WeaknessesWeaknesses

assumes that National Territory are assumes that National Territory are the limits that culture correspond tothe limits that culture correspond to

informants also worked within a informants also worked within a single industrysingle industry

technical difficulties technical difficulties

Hofstede’s ModelHofstede’s Model

StrengthsStrengths most practical to management most practical to management

problemsproblems

comparisons between national comparisons between national

cultures possiblecultures possible

highly relevanthighly relevant

Sondergaard, M., 1994. Sondergaard, M., 1994. Research note: Research note:

Hofstede’s Hofstede’s Consequences: a study of Consequences: a study of

reviews, citations and reviews, citations and replications, replications,

Organizational Studies, Organizational Studies, 15(3), pp 447-5615(3), pp 447-56

Smith, P. B., Dugan, S., Smith, P. B., Dugan, S., and Trrompanaars, F., and Trrompanaars, F., 1996. National culture 1996. National culture

and the values of and the values of organizational organizational

employees: a dimensional employees: a dimensional analysis across 43 analysis across 43

nations, nations, Journal of Cross-Journal of Cross-cultural Psychology. cultural Psychology. 27, 27,

pp 231-64pp 231-64

5. Fons Trompenaars and 5. Fons Trompenaars and the Consultant’s the Consultant’s

ContributionContribution

Trompenaars, F., 1993. Trompenaars, F., 1993. Riding Riding the Waves of Culture. the Waves of Culture. Nicholas Nicholas

Brealey, LondonBrealey, London

Trompenaars’s Trompenaars’s parameters:parameters:

4. Relationships and rules; 4. Relationships and rules; Universalism vs ParticularismUniversalism vs Particularism

5. The group and the individual; 5. The group and the individual; Collectivism vs IndividualismCollectivism vs Individualism

6. Feelings and relationships; 6. Feelings and relationships; Neutral vs EmotionalNeutral vs Emotional

7. How far we get involved; Specific vs 7. How far we get involved; Specific vs DiffuseDiffuse

Trompenaars Trompenaars Parameters:Parameters:

8. How we accord Status 8. How we accord Status

9. How we manage Time9. How we manage Time

10. How we relate to Nature10. How we relate to Nature

Critique of Trompenaars’ Critique of Trompenaars’ ParametersParameters

advantage of this approach is that it advantage of this approach is that it draws together and applies ideas draws together and applies ideas contributed by a range of scholars contributed by a range of scholars

disadvantage like in the value of disadvantage like in the value of Trompenaars own research. The pool Trompenaars own research. The pool of informants is vaguely defined and of informants is vaguely defined and lacks homogeneitylacks homogeneity

PART IIIPART III

Cross-cultural Cross-cultural Management Management

CommunicationCommunication

What is appropriate What is appropriate communication in different communication in different

cultures?cultures?When communicating, consider the When communicating, consider the

following:following:

WHO WHO TO WHOMTO WHOM WHATWHAT HOWHOW WHEN WHEN WHEREWHERE

The Transactional ModelThe Transactional Model

Participant AParticipant A decides what to decides what to

communicatecommunicate encodes a encodes a

message message transmits the transmits the

messagemessage decodes B’s decodes B’s

messagemessage

situational situational influencesinfluences

Participant BParticipant B decides what to decides what to

communicatecommunicate encodes a messageencodes a message transmits the transmits the

messagemessage decodes A’s decodes A’s

messagemessage

situational situational influences influences

Situational InfluencesSituational Influences Non-verbal signalingNon-verbal signaling

Hall, E. T., 1959. Hall, E. T., 1959. The Silent Language. The Silent Language. Doubleday.Doubleday.

Stance Stance

GestureGesture

Voice qualityVoice quality

Group WorkGroup Work

Cheryl M. CordeiroCheryl M. Cordeiro

[email protected]@ling.gu.se