international business, 5th edition

chapter 4

the role of culture

Chapter Objectives 1
Discuss the primary characteristics of culture
Describe the various elements of culture and provide examples of how they influence international business Identify the means by which members of a culture communicate with each other

4-2

Chapter Objectives 2
Discuss how religious and other values affect the domestic environments in which international businesses operate
Describe the major cultural clusters and their usefulness for international managers Explain Hofstedes primary findings about differences in cultural values Explain how cultural conflicts may arise
4-3

Culture
Culture is the collection of values, beliefs, behaviors, customs, and attitudes that distinguish one society from another. A societys culture determines the rules that govern how firms operate in the society.

4-4

Characteristics of Culture
Learned behavior
Interrelated elements

Adaptive
Shared

4-5

Figure 4.1 Elements of Culture

Language Social structure Communication

Culture
Values/ attitudes
4-6

Religion

Social Structure

Individuals, families, and groups Social stratification

Social mobility

4-7

Language
3000+ different languages worldwide
10,000+ different dialects Primary delineator of cultural groups

4-8

Map 4.1 World Languages

4-9

Map 4.2 Africas Colonial Legacy

4-10

Translation Disasters
KFCs Finger Lickin Good
Eat your fingers off (China)

Pillsburys Jolly Green Giant

Intimidating green ogre (Saudi Arabia)

4-11

Caterpillar Fundamental English

Caterpillar has developed its own simplified language instruction program.

4-12

Yes and No Across Cultures

Latin America
meaning of manana

Japan
meaning of yes versus yes, I understand

4-13

Nonverbal Communication
Nonverbal communication may account for 80-90 percent of all information transmitted among members of a culture by means other than language.

4-14

Table 4.1 Forms of Nonverbal Communication 1

Hand gestures Facial expression Posture and stance Touching Eye contact Architecture/interior design Artifacts and nonverbal symbols Graphic symbols

Clothing/hair style
Walking behavior Interpersonal distance

4-15

Table 4.1 Forms of Nonverbal Communication 2

Art and rhetorical forms
Smell Speech rate, pitch, inflection, volume Color symbolism Synchronization of speech and movement

Taste, symbolism of food, oral gratification

Cosmetics Sound signals Time symbolism Timing and pauses Silence

4-16

Gift Giving and Hospitality

Gift giving is an important means of communication, but what is appropriate varies.

4-17

Religion
Imposes constraints on roles of individuals in society
Affects the types of products consumers may purchase Varies from country to country

4-18

Religion

Christianity Islam Hinduism

Buddhism

4-19

Map 4.3 Major World Religions

4-20

Religion
Two million Muslims annually descend on the Grand Mosque in Mecca, Saudi Arabia as part of the Haij

4-21

Values and Attitudes

Values are the principles and standards accepted by the members; attitudes encompass the actions, feelings, and thoughts that result from those values.

4-22

Values and Attitudes

Time

Age

Education

Status

4-23

Theories of Culture
Halls Low-Context, High-Context Approach
Cultural Cluster Approach Hofstedes Five Dimensions

4-24

Halls Low-Context High-Context Approach An approach to understanding communication based on the relative emphasis on verbal and nonverbal cues to transmit meaning

4-25

4-26

German Swiss Scandinavian U.S./ Canadian British Italian Spanish Greek Arab Vietnamese Japanese Korean Chinese

Figure 4.2 High- and Low-Context Cultures

Low Context

High Context

The Cultural Cluster Approach

An approach to understanding communication based on meaningful clusters of countries that share similar cultural values

4-27

Map 4.4 A Synthesis of Country Clusters

4-28

Hofstedes Five Dimensions

Social Orientation
Power Orientation Uncertainty Orientation Goal Orientation Time Orientation
4-29

Social Orientation

Individualism

Collectivism

Relative importance of the interests of the individual versus interests of the group

4-30

Power Orientation

Power Respect

Power Tolerance

Appropriateness of power/authority within organizations

4-31

Figure 4.4 Social Orientation and Power Orientation Patterns

4-32

Uncertainty Orientation
Uncertainty Acceptance Uncertainty Avoidance

Emotional response to uncertainty and change

4-33

Goal Orientation
Aggressive Passive

What motivates people to achieve different goals

4-34

Time Orientation
Long-term outlook Short-term outlook

The extent to which members of a culture adopt a long-term or a short-term outlook on work and life
4-35

Understanding New Cultures

Self-reference criterion

Cultural literacy

Acculturation

4-36