Cultural Regions 2014

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Cultural Regions 2014

Text of Cultural Regions 2014

  • Negociacin y Administracin Intercultural

    Vivian Kadelbach

    Universidad Anahuac, Mxico Norte

  • Model of cultural assumptions

    Assumption Negotiation Features

    Diversity has no impact International follows domestic What works locally will be applied internationally

    Multidomestic (ethnocentric)

    Diversity causes only problems Every country is unique Every subsidiary administers negotiations locally

    International (polycentric)

    Diversity can either lead to benefits or cause problems

    The intent is to design a regionally integrated negotiation strategy

    Multinational (regiocentric)

    Diversity can simultaneously cause problems and lead to benefits

    Everybody negotiates similarly Cultural differences & similarities impact negotiations

    Global/ Transnational


  • Cultural allies & islands

    Most business people think in terms of geographic regions rather than cultural allies & islands

    Regions are arbitrary Each region is diverse in terms of

    culture, politics, economics, social structure etc.

    At a macro level there are defining characteristics setting them apart from each other

  • Cultural allies

    Group I: Australia, Canada, Great Britain, New Zealand, Singapore, United States Common traits: preference for family over work, and the least cosmopolitan (multilingual, having international experience)

  • Cultural allies (contd)

    Group II: Argentina, Brazil, Italy, Mexico, Spain, Venezuela Common traits: more privately held companies, fewer joint ventures, higher reliance on trade policy for international protection

  • Cultural allies (contd)

    Group III: Austria, Belgium, Finland, France, Germany, the Netherlands, Sweden Common traits: most cosmopolitan, more close partnerships, more pessimistic about future

  • Cultural islands

    Japan: Strongest work ethic, greatest concern about work ethic of the rest of the work force, strongly in favor of free trade South Korea: Favors protectionism, country ahead of company, strong sense of corporate responsibility toward employees, more optimistic about future India: More optimistic about future, strongly favors protectionism Hungary: Organizationally different from companies in other countries, very focused on economic regeneration

  • Cultural regions around the globe

    Africa Asia Europe Latin America Middle East North America

    Understanding of the predominant

    belief systems in a region

  • Primary belief systems

    Buddhism Christianity Confucianism Hinduism Islam Judaism Shintoism Sikhism Taoism Zen

  • Africa

    forgotten continent (except for SA) Few investment opportunities Demand for major natural resources

    has decreased Many countries were formed as a result

    of colonialism Cultures are more often associated

    with traditional kingdoms or tribes Culturally: mix of Islamic, Christian and

    traditional indigenous beliefs

  • Africa (contd)

    Environment: constraint, low per capita income, minimal education opportunities, lack of infrastructures, small middle class, dependence on foreign aid, change has been externally driven

    Time: fluid, relationships have priorities over schedules & deadlines, no concern over the future, respect for traditions

    Action: more being than doing oriented, change is not valued for its own sake, importance of relationships, leisure & family are important

  • Africa (contd)

    Communication: high context, indirect, and inexpressive, politeness & protocol are highly valued, generous hospitality, status & seniority are important, proud of achievements, reserved

    Space: personal space is closer, space is more public, reliance on friendship & trust, friendly touching is common

    Power: home to authoritarian leaders, authority is rarely questioned, free expression is not given a high value, relationships with top officials are key, age = wisdom, loyalty is highly valued

  • Africa (contd)

    Individualism: collectivist culture, extended family & tribes are powerful groups that shape individual behavior, nepotism, corruption

    Competitiveness: emphasis placed on material success & prosperity, southern African economic community to create bigger markets for local products etc., outside of this competitiveness is low to moderate

    Structure: life is neither rigid nor highly regulated, red tape, bureaucracies are large & inefficient

    Thinking: socioeconomic progress & effectiveness are impeded by decision making based on symbolic & mythological thought, confusion of symbol & substance

  • Asia

    Wide cultural diversity Profound economic opportunity Competitive challenge Largest continental land mass (over

    30%) & highest percentage of worlds population (over 56%)

    Region of deep contrast Highest economic growth since WWII Ancient philosophical & religious


  • Asia

    Environment: harmony/constraint mixes due to predominant philosophies, close attention to change in circumstance, decision making may take longer, implementation is faster

    Time: single focused (less developed countries: multi-focused), strong past & long term future orientation, sense of urgency lower, high sense of personal identification with history, collectivist, long term oriented

    Action: being & doing orientation, emphasis on hard work & relationships, entertainment is key

  • Asia

    Communication: formalities are important, inside & outside group, indirect, high context, self controlled

    Space: public office spaces, personal space requirements more distant that LA, touching avoided, private offices are rare, sitting positions reveal power

    Power: hierarchy or soft authoritarianism and authoritarian pluralism, paternalistic authority, large difference between power levels between managers & subordinates

    Individualism: not highly valued, entrepreneurial spirit in HK, Taiwan, China, loyalty to work organization, collectivist orientation

  • Asia (contd)

    Competitiveness: variations across countries, Japan, HK, Philippines are highly competitive, seniority and collectivism are still key

    Structure: values regarding structure vary, high value on structure, order & control, high value placed on structure = stronger value placed on consensus, low value on legalism

    Thinking: difficult for Westerners to comprehend, be open minded and flexible

  • Europe

    Radical change over the past 2 decades Patchwork of cultures Increased economic cooperation but deep

    cultural identities that shape the continent Cultural divisions:

    North: Norway, Sweden, Denmark, Finland, Iceland

    West: France, Germany, UK, Ireland, Belgium, Netherlands)

    South: Italy, Spain, Portugal, Greece East: Russia, Poland, Hungary,

    Romania, Bulgaria, Baltic States

  • Europe (contd)

    Environment: mix of mastery, harmony & constraint, risk averse, suspicious of change, history weighs heavily

    Time: respect for tradition, progress & change are not that important, long-term goals, no short-term future urgency, single-focus orientation to time (except for south), time is important (more fluid in the south)

    Action: quality of life, family is important, leisure time & vacations, achievement is valued but activity is not, business is given lower priority, split between work & social life

  • Europe (contd)

    Communication: large variations, indirect (UK), direct & confrontational (France), expressive (south), high level of formality, respect is key, once trust is built, formalities are dropped

    Space: Personal space requirements vary, Power: power orientation varies, hierarchy is

    pronounced, power flows from the top down, workforce is well trained & educated, long tenure with the same company

  • Europe (contd)

    Individualism: high value on individualism, acceptable to be an individual, but within the context of strong group affiliations, decision making is group oriented, loyalty is a key success factor

    Competitiveness: competitiveness is valued, some northern countries value quality of life & interdependence

    Structure: high value on structure in southern Europe, Belgium, France & Germany, risk aversity

    Thinking: different thinking styles - from deductive, holistic (French) to pragmatic, linear (UK) > in general more deductive & holistic

  • Latin America

    Common mistake is to think of the region as homogeneous

    Cultural heritage derived from Spain, Portugal and other European countries

    Ambivalent attitude toward the US Nationalism and cultural pride Strong emphasis on obligations to family &

    friends Hierarchical power structures

  • Latin America (contd)

    Environment: belief that human beings are controlled by forces of nature & the environment, hard work, fate & luck determine success, adjustment rather than change

    Time: history & tradition are highly valued, multifocus, past & present orientation, overlap between business, family & social, time is fluid

    Action: being orientation, trust is critical, leisure & companionship are key

  • Latin America

    Communication: high context, implicit meaning, formal, indirect, serious, subjective, expressive, argumentative at times