Cross cultural issuesCross cultural issues
Dr Joan Harvey
Dr Joan Harvey
What are we covering today?
What are we covering today?
Understanding of culture and cultural differences
Looking at two studies using a risk perspectiveDrivingManagement differences UK vs Zim
Asking the question: to what extent do attitudes, values amd behaviour vary across cultures?
Understanding of culture and cultural differences
Looking at two studies using a risk perspectiveDrivingManagement differences UK vs Zim
Asking the question: to what extent do attitudes, values amd behaviour vary across cultures?
Conceptualising risk issues and culture
Conceptualising risk issues and culture
Culture as shared values “Collective programming of the mind that distinguishes the
members of one group or category of people from others” [Hofstede and Hofstede, 1995]
Evident in rules, procedures, ‘how we do things around here’
Is learned Risk taking, risk awareness Risk avoidance, loss avoidance or uncertainty
avoidance?
Culture as shared values “Collective programming of the mind that distinguishes the
members of one group or category of people from others” [Hofstede and Hofstede, 1995]
Evident in rules, procedures, ‘how we do things around here’
Is learned Risk taking, risk awareness Risk avoidance, loss avoidance or uncertainty
avoidance?
Why is cross-culture important?
Why is cross-culture important?
Costly IJV failuresBreakdown of expatriate assignmentsBreakdown of collaborative
assignmentsProduct failure, errors, poor qualityFailure to understand markets,
business partners, consumersMisunderstandings can cause
aggression, etc.Perception differences, including risk
Costly IJV failuresBreakdown of expatriate assignmentsBreakdown of collaborative
assignmentsProduct failure, errors, poor qualityFailure to understand markets,
business partners, consumersMisunderstandings can cause
aggression, etc.Perception differences, including risk
How has culture been investigated and studied?
How has culture been investigated and studied?
Social anthropologyInternational BusinessSociolinguistics and communicationsEarly work in Psychology was limited to things
such as:Differences in perception of values of coins amongst
children from different ethnic basesLinguistics: included class as well as cross-cultural
differencesWe will look at several writers today, including
Hofstede, Trompenaars and Hall
Social anthropologyInternational BusinessSociolinguistics and communicationsEarly work in Psychology was limited to things
such as:Differences in perception of values of coins amongst
children from different ethnic basesLinguistics: included class as well as cross-cultural
differencesWe will look at several writers today, including
Hofstede, Trompenaars and Hall
Geert Hofstede 1Geert Hofstede 1
Dutch social anthropologistObtained attitude data from IBM worldwide
in late 1970sFactor analysed and looked for factors
which differentiated nationalitiesData on 50 countries, but only sufficient N
for 40 in first bookGenerally accepted as the most important
now in cross-cultureBut still limitations in his theory
Dutch social anthropologistObtained attitude data from IBM worldwide
in late 1970sFactor analysed and looked for factors
which differentiated nationalitiesData on 50 countries, but only sufficient N
for 40 in first bookGenerally accepted as the most important
now in cross-cultureBut still limitations in his theory
Geert Hofstede: 5 factorsGeert Hofstede: 5 factors
Masculinity femininityEssentially the differentiation of sex-roles vs. both sex-roles
considered the sameAmbition and desire to achieve vs. social concern and
interpersonal relationshipsPower distance
The tolerance of small or large power differentials Amount of power that can be wielded
Uncertainty avoidanceTolerance of ambiguity, flexibility vs. preference for
structure Individualism- collectivism
Help and commitment to group versus high personal achievement
LT-ST orientation [added later in 1990s]“Confucian dynamism” principles on both sides, primarily
time-based
Masculinity femininityEssentially the differentiation of sex-roles vs. both sex-roles
considered the sameAmbition and desire to achieve vs. social concern and
interpersonal relationshipsPower distance
The tolerance of small or large power differentials Amount of power that can be wielded
Uncertainty avoidanceTolerance of ambiguity, flexibility vs. preference for
structure Individualism- collectivism
Help and commitment to group versus high personal achievement
LT-ST orientation [added later in 1990s]“Confucian dynamism” principles on both sides, primarily
time-based
Geert HofstedeGeert HofstedeAll countries will have changed in last 30
yearsEastern EuropeDeveloping countries that are now developedPolitical changesChanges in technology and global communicationMigration of peoples
Are cross-cultural differences still as pronounced?In-group vs out-group explanations
All countries will have changed in last 30 yearsEastern EuropeDeveloping countries that are now developedPolitical changesChanges in technology and global communicationMigration of peoples
Are cross-cultural differences still as pronounced?In-group vs out-group explanations
Geert HofstedeGeert Hofstede
IssuesThis study put cross-cultural
differences into the mainstream rather than as “error variance” in other studies
Encouraged other theoristsRecent research has allowed many
more countries to be mapped
IssuesThis study put cross-cultural
differences into the mainstream rather than as “error variance” in other studies
Encouraged other theoristsRecent research has allowed many
more countries to be mapped
Country PD UAI MF IC LTO
Germany 35 65 66 67 31
China 80 30 66 20 118
USA 40 46 62 91 29
Japan 54 92 95 46 80
UK 35 35 66 89 25
Finland 33 59 26 63 41
Austria 11 70 79 55 31
India 77 40 56 48 61
Hungary 46 82 88 80 50
Denmark 18 23 16 74 46
Czech Rep 57 74 57 58 13
Slovakia 104 51 110 52 38
Poland 50 72 60 55 31
Comments on these dataComments on these data
Short-terms orientation in e.g. UK clearly shown in how the financial markets behave- out to get the quick ‘buck’
Chinese and Japanese businesses into investment for the longer term, built on relationships and ‘family’ structures
Short-terms orientation in e.g. UK clearly shown in how the financial markets behave- out to get the quick ‘buck’
Chinese and Japanese businesses into investment for the longer term, built on relationships and ‘family’ structures
Examples of other theories: [a] Trompenaars
7 factors:
Examples of other theories: [a] Trompenaars
7 factors: Universalism versus particularism Work relationships mixed with personal ones
Individualism versus collectivismAffective versus neutral cultureSpecific versus diffuse relationships
Distinct relationships versus diffuse onesAchieving versus ascribing status
Earned through achievement or recognised e.g. seniority/age
Perception of time Sequential [monochronic] or parallel [polychronic]
Relating to nature
Universalism versus particularism Work relationships mixed with personal ones
Individualism versus collectivismAffective versus neutral cultureSpecific versus diffuse relationships
Distinct relationships versus diffuse onesAchieving versus ascribing status
Earned through achievement or recognised e.g. seniority/age
Perception of time Sequential [monochronic] or parallel [polychronic]
Relating to nature
Example [b] GLOBAL project Example [b] GLOBAL project AssertivenessFuture orientationGender egalitarianismHumane orientationInstitutional collectivismIn-group collectivismPerformance orientationPower distanceUncertainty avoidance
AssertivenessFuture orientationGender egalitarianismHumane orientationInstitutional collectivismIn-group collectivismPerformance orientationPower distanceUncertainty avoidance
Two more factors that are interrelated.
Two more factors that are interrelated.
Time perceptionPolychronic or cyclical [e.g. southern
Europe, China, Japan]Monochronic [e.g. northern Europe, US]
Context [Edward Hall]High means that perception of what is
said is taken in context, including NVCsLow means words are interpreted
literally
Time perceptionPolychronic or cyclical [e.g. southern
Europe, China, Japan]Monochronic [e.g. northern Europe, US]
Context [Edward Hall]High means that perception of what is
said is taken in context, including NVCsLow means words are interpreted
literally
Other dimensions from indigenous social
psychology
Other dimensions from indigenous social
psychology China Confucian values
Filial piety IndustriousnessGiving and protecting faceThrift
GuanxiSocial networking crucial to business relationships
Ren chingRespectful exchange of gifts, favours and obligations
China Confucian values
Filial piety IndustriousnessGiving and protecting faceThrift
GuanxiSocial networking crucial to business relationships
Ren chingRespectful exchange of gifts, favours and obligations
Other dimensionsOther dimensionsJapan
Amae and respectReliance and dependence upon indulgent love of
an older personKanban
Concept of whole transcending sum of partsRingi
Upward communications and decision makingSacred treasures-
life time employment, seniority, enterprise unions/families
Harmony and cooperation [‘wa’]Gakureki Shakai
Social system attaching value to education
JapanAmae and respect
Reliance and dependence upon indulgent love of an older person
KanbanConcept of whole transcending sum of parts
RingiUpward communications and decision making
Sacred treasures- life time employment, seniority, enterprise
unions/familiesHarmony and cooperation [‘wa’]Gakureki Shakai
Social system attaching value to education
Example: Theory ZExample: Theory Z Application of Japanese management
principles to American & British businesses Long term focus Zero tolerance Personal responsibility for self-development Positive attitudes to seniority Teamwork rather than individual achievement Commitment and trust Quality and pride Multi-skilling
Application of Japanese management principles to American & British businesses
Long term focus Zero tolerance Personal responsibility for self-development Positive attitudes to seniority Teamwork rather than individual achievement Commitment and trust Quality and pride Multi-skilling
Other dimensionsOther dimensions
Africa Cognitive tolerance Not on seat Africa time Indaba [Malawi] Ubuntu [Malawi] Tribal loyalty Power and respect based on experience Managers ‘right to manage’
Africa Cognitive tolerance Not on seat Africa time Indaba [Malawi] Ubuntu [Malawi] Tribal loyalty Power and respect based on experience Managers ‘right to manage’
Other dimensionsOther dimensions
Several cultures resent ‘intrusiveness’ of western values, western research methods, e.g.PhilippinesSub-Saharan AfricaIndiaChina
Several cultures resent ‘intrusiveness’ of western values, western research methods, e.g.PhilippinesSub-Saharan AfricaIndiaChina
Other dimensionsOther dimensions
Latin American countries: emphasis on Respect Family Hierarchy Honour Affiliative obedience Cultural rigidity Machismo Sympatia
Latin American countries: emphasis on Respect Family Hierarchy Honour Affiliative obedience Cultural rigidity Machismo Sympatia
Other dimensionsOther dimensions
IndiaDetachment as a coping mechanism,
therefore working hard is unrelated to success or failure
Ingratiation techniques to advance personal goals within hierarchical collective context[similar to parts of western Africa]
IndiaDetachment as a coping mechanism,
therefore working hard is unrelated to success or failure
Ingratiation techniques to advance personal goals within hierarchical collective context[similar to parts of western Africa]
Exercise Exercise Now to discuss and answer the
following question:What are the factors that might
determine differences in attitudes to business and risk betweenChinaUKItaly
Present your reasons for three of the factors
Now to discuss and answer the following question:What are the factors that might
determine differences in attitudes to business and risk betweenChinaUKItaly
Present your reasons for three of the factors
Effects of cultural differences
Effects of cultural differences
How society functionsBasic values and beliefs- lifestylesRelationships in organizationsGambling and investment behavioursConsumer behaviourDriver behaviour
How society functionsBasic values and beliefs- lifestylesRelationships in organizationsGambling and investment behavioursConsumer behaviourDriver behaviour
Study into driver behaviour: theories for risk-taking in
drivers:
Study into driver behaviour: theories for risk-taking in
drivers: Risk homeostasisRisk avoidanceSensation seekingFlow, arousalMotivation, intrigue and curiosityFatigueVigilance
Risk homeostasisRisk avoidanceSensation seekingFlow, arousalMotivation, intrigue and curiosityFatigueVigilance
But do these apply across cultures?But do these apply across cultures?Risk homeostasis and risk avoidance-
cultural differences knownSensation seeking- individualism-related so
will be less strong in Pacific rim countriesFlow- probably a western conceptMotivation, intrigue and curiosity- known to
be conceptually different in many culturesArousal and fatigueVigilance- may vary according to cultural
norms
Risk homeostasis and risk avoidance- cultural differences known
Sensation seeking- individualism-related so will be less strong in Pacific rim countries
Flow- probably a western conceptMotivation, intrigue and curiosity- known to
be conceptually different in many culturesArousal and fatigueVigilance- may vary according to cultural
norms
Did we expect cross-cultural differences? …YesDid we expect cross-cultural differences? …Yes
Evidence from Australia and Finland shows differences in safety skills
Differences in driver anger between UK and US
Finland, UK Netherlands differ from Turkey, Iran and Greece: combination of driving style and culture in determining N accidents
Americans more risk-averse than Chinese in relation to buying risky financial options [in 1998, not necessarily now!]
Evidence from Australia and Finland shows differences in safety skills
Differences in driver anger between UK and US
Finland, UK Netherlands differ from Turkey, Iran and Greece: combination of driving style and culture in determining N accidents
Americans more risk-averse than Chinese in relation to buying risky financial options [in 1998, not necessarily now!]
Significant country differences in:speeding penalties, parking offences, mean annual mileage and mean yrs driving,F1 responses to under-stimulation, F3 lapse and error proneness F4 anxietyCorrrelations of personality factors with F1
Significant sex differences forF2 enthusiasm and flow, F3 lapses and F4
anxietySignificant age differences for
At fault crashesAnnual mileage
Significant country differences in:speeding penalties, parking offences, mean annual mileage and mean yrs driving,F1 responses to under-stimulation, F3 lapse and error proneness F4 anxietyCorrrelations of personality factors with F1
Significant sex differences forF2 enthusiasm and flow, F3 lapses and F4
anxietySignificant age differences for
At fault crashesAnnual mileage
Other findingsOther findings
F3: Lapse and error pronenessF3: Lapse and error proneness
UK US
Men 26.02 29.45
Women 28.16 33.18
Hofstede factors?Uncertainty avoidance or flexibility XMasculinity femininity XIndividualism collectivism XPower distance XLong term short term orientation X
Other relevant factorsHigh or low context cultures PossTime perception PossRisk perception, risk awareness ProbAnger management ProbMotivational differences Prob
Hofstede factors?Uncertainty avoidance or flexibility XMasculinity femininity XIndividualism collectivism XPower distance XLong term short term orientation X
Other relevant factorsHigh or low context cultures PossTime perception PossRisk perception, risk awareness ProbAnger management ProbMotivational differences Prob
Possible causal cross-cultural differences?
Possible causal cross-cultural differences?
A reminder for US vs UK/ Europe…A reminder for US vs UK/ Europe…Country PD UAI MF IC LTO
Germany 35 65 66 67 31
China 80 30 66 20 118
USA 40 46 62 91 29
Japan 54 92 95 46 80
UK 35 35 66 89 25
Finland 33 59 26 63 41
Austria 11 70 79 55 31
India 77 40 56 48 61
Czech 57 74 57 58 13
Slovakia 104 51 110 52 38
Poland 50 72 60 55 31
This was a small study, possibly not representative, but… the evidence here is consistent:drivers in US and UK/Europe show
differences in propensity to boredom, personality correlates of driving and a series of driver metrics.
So is it the drivers’ culture or the environment that is the cause of these differences, or both?
This was a small study, possibly not representative, but… the evidence here is consistent:drivers in US and UK/Europe show
differences in propensity to boredom, personality correlates of driving and a series of driver metrics.
So is it the drivers’ culture or the environment that is the cause of these differences, or both?
ImplicationsImplications
Situational/environmental causes?Driving in US rural areas is much lower stimulus
driving than UK or EuropeOvertaking manoeuvres [more dangerous, more
lapses] less likely in US Road planners need to think very hard about putting
interest back into the roads- more bends in roads, more [not less] scenery, more things to do.
Driver causesUS and UK relatively similar in Hofstede factors,
although other Europeans differ more.So could it be risk perceptions or driving attitudes
that differentiate US and Uk/Europe?
Situational/environmental causes?Driving in US rural areas is much lower stimulus
driving than UK or EuropeOvertaking manoeuvres [more dangerous, more
lapses] less likely in US Road planners need to think very hard about putting
interest back into the roads- more bends in roads, more [not less] scenery, more things to do.
Driver causesUS and UK relatively similar in Hofstede factors,
although other Europeans differ more.So could it be risk perceptions or driving attitudes
that differentiate US and Uk/Europe?
Cross-cultural differences?
Cross-cultural differences?
Quiz questionsQuiz questions
1 In sub-Saharan Africa, it is important not to be late for meetings Yes No
2 In sub-Saharan African countries, a manager should use command rather than persuasion Yes No
3 It is important to get to know your host before doing business in the Middle East Yes No
1 In sub-Saharan Africa, it is important not to be late for meetings Yes No
2 In sub-Saharan African countries, a manager should use command rather than persuasion Yes No
3 It is important to get to know your host before doing business in the Middle East Yes No
More…. More….
4 When given a business card by a Japanese business person, what should you do with it and why?
5 Would you start a presentation to Japanese business people with an apology? Yes no
6 If offered coffee by an Arab, if you didn't like coffee, should you refuse it?
Yes no
4 When given a business card by a Japanese business person, what should you do with it and why?
5 Would you start a presentation to Japanese business people with an apology? Yes no
6 If offered coffee by an Arab, if you didn't like coffee, should you refuse it?
Yes no
For doing business……. For doing business…….
7 Trust is important in 7 Trust is important in
Japan Malaysia USA
China
Japan Malaysia USA
China
8 Seniority or age is important8 Seniority or age is important
Japan Malaysia USA China
Japan Malaysia USA China
Study example: UK vs Zimbabwean ManagersStudy example: UK vs Zimbabwean Managers
Attitude and motivational differences measuredStatus, prestige, loyaltySocial approvalMotive strength and work values
117 African managers, mostly from Zim but a few from Botswana 32% women
82 British managers 58% womenSimilar ages
Attitude and motivational differences measuredStatus, prestige, loyaltySocial approvalMotive strength and work values
117 African managers, mostly from Zim but a few from Botswana 32% women
82 British managers 58% womenSimilar ages
Study results Study results Cultural differences found in
Importance of status, position, pride and prestige
Social approvalLoyalty to work colleagues… [tribal]
No differences found forCourtesyAccept criticismAdmit mistakesLoyalty to friends and family
Cultural differences found in Importance of status, position, pride
and prestigeSocial approvalLoyalty to work colleagues… [tribal]
No differences found forCourtesyAccept criticismAdmit mistakesLoyalty to friends and family
A few more to compare…A few more to compare…Country PD UAI MF IC LTO
China 80 30 66 20 118
USA 40 46 62 91 29
Japan 54 92 95 46 80
UK 35 35 66 89 25
Arab Cs 80 68 53 38 -
E Africa 64 52 41 27 25 Zim
W Africa 77 54 46 20 -
Spain 57 86 42 51 19
Italy 50 75 70 76 34
What can other research add?
What can other research add?
Specific aggressive behaviours in driving are associated with cultural norms [Shinar, 1998]
Chinese from PRC more risk-seeking in investments than USA [Weber and Hsee, 1998]
US more risk-averse than Spanish [Zinkhan & Karande 1990]
Differences in risk preference between PRC, USA, Germany and Poland [Weber and Hsee 1998]
Many nationality differences found in sensation-seeking and risk taking [Pizam et al, 2004]
Specific aggressive behaviours in driving are associated with cultural norms [Shinar, 1998]
Chinese from PRC more risk-seeking in investments than USA [Weber and Hsee, 1998]
US more risk-averse than Spanish [Zinkhan & Karande 1990]
Differences in risk preference between PRC, USA, Germany and Poland [Weber and Hsee 1998]
Many nationality differences found in sensation-seeking and risk taking [Pizam et al, 2004]
More research…More research…Risk judgements taken by HK and Taiwan more
sensitive to magnitude of potential losses and less mitigated by prob [positive outcomes] than Netherlands and US [Bontempo et al, 1997]
Culturally diverse groups had more problems with interaction behaviours that interfered with problem-solving [Watson and Kumar 1992]
Risk perception ratings of drivers: Spanish highest, US lowest, younger perceived less risk [cf West German and Brazil] [Sivak et al 1989]
Risk judgements taken by HK and Taiwan more sensitive to magnitude of potential losses and less mitigated by prob [positive outcomes] than Netherlands and US [Bontempo et al, 1997]
Culturally diverse groups had more problems with interaction behaviours that interfered with problem-solving [Watson and Kumar 1992]
Risk perception ratings of drivers: Spanish highest, US lowest, younger perceived less risk [cf West German and Brazil] [Sivak et al 1989]
And more….And more….Australia- issues in risk-taking include self-
improvement, emotional engagement and control [Lupton & Tulloch, 2002]
Turkish drivers: smaller safety margins that do not allow corrective manoevres [Ozkan et al, 2006]
Using simulated intersection crossing, West Germans made fewer attempts, greater p(success), greater safety margins than US or Spanish [Sivak et al, 1989]
Australia- issues in risk-taking include self-improvement, emotional engagement and control [Lupton & Tulloch, 2002]
Turkish drivers: smaller safety margins that do not allow corrective manoevres [Ozkan et al, 2006]
Using simulated intersection crossing, West Germans made fewer attempts, greater p(success), greater safety margins than US or Spanish [Sivak et al, 1989]
Power distance Uncertainty avoidanceIndividualism-collectivism Masculinity-femininityLT/ST orientation Risk perceptionRisk aversion Affect, including angerMotivation Need for harmonyRespect and piety TrustResponses to errors ViolationsContext & communications Time perceptionSocial approval Groupthink, shift to riskIn-group bias and tribalism Leadership/
management
And all these can affect how we work and behave in many situations!
Power distance Uncertainty avoidanceIndividualism-collectivism Masculinity-femininityLT/ST orientation Risk perceptionRisk aversion Affect, including angerMotivation Need for harmonyRespect and piety TrustResponses to errors ViolationsContext & communications Time perceptionSocial approval Groupthink, shift to riskIn-group bias and tribalism Leadership/
management
And all these can affect how we work and behave in many situations!
Summary of cultural difference issues across the studies
Summary of cultural difference issues across the studies
But we should not forget.. But we should not forget..
That the scores for countries have considerable within-groups variation.
That some countries [e.g. India, US] have large ethnic sub-groups which will be different to the country averages.
So I can propose that countries may divide on each dimension into 3 [perhaps Individualism-collectivism into 5] broad groupings.
That the scores for countries have considerable within-groups variation.
That some countries [e.g. India, US] have large ethnic sub-groups which will be different to the country averages.
So I can propose that countries may divide on each dimension into 3 [perhaps Individualism-collectivism into 5] broad groupings.
Key textsKey texts
Hofstede G and Hofstede G (2005) Culture and Organizations: Software of the mind. 2nd ed London: McGraw Hill
Lewis RD (2007) When Cultures Collide. 3rd ed London: Nicholas Brearley
Hofstede G and Hofstede G (2005) Culture and Organizations: Software of the mind. 2nd ed London: McGraw Hill
Lewis RD (2007) When Cultures Collide. 3rd ed London: Nicholas Brearley
Joan HarveyNewcastle University, United Kingdom and Visiting Professor, Czech University of Life Sciences [CZU]
With thanks to Neil Thorpe, Newcastle University, United
Kingdom Corinne Mulley, Professor of Transport
Economics, University of Sydney, AustraliaLudek Kolman, CZU
Joan HarveyNewcastle University, United Kingdom and Visiting Professor, Czech University of Life Sciences [CZU]
With thanks to Neil Thorpe, Newcastle University, United
Kingdom Corinne Mulley, Professor of Transport
Economics, University of Sydney, AustraliaLudek Kolman, CZU
Thank you for your attentionThank you for your attention