Transcript Culture

Introduction to International
Business
David J. Boggs, Ph.D.
Cultural Environment
International Business and
Globalization
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IB has grown rapidly and continues to grow
rapidly
Activities are diverse and taken for many
purposes
Different environment and activities than
domestic-only competition
More difficult, complex, and risky than
domestic business
In many industries it is no longer possible to
be just a domestic competitor
Culture
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Culture is the “set of values, beliefs, rules,
and institutions held by a specific group of
people”
It is learned and shared, its elements are
interrelated, and it defines group boundaries
Subcultures exist within larger cultural
contexts
One can acquire cultural literacy
Ethnocentricity is a belief that one’s own
culture is universally superior to others
Elements of Culture
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Aesthetics – sense of beauty and good
taste
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Attitudes and beliefs
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Art, color, symbols, music, folklore
Time, directness, achievement, work, change
Manners (appropriate behavior) and
customs (traditional behaviors)
Elements of Culture
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Education
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Literacy, science, math, trades,
management
Legal and political system
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Secular versus religious
Free or not free
Planned versus laissez-faire
Elements of Culture
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Societal organization
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Family structure, in-laws, extended family,
divorce
Class mobility
Associations by age, gender, common
interests, or otherwise
Elements of Culture
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Language and communication
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Verbal and non-verbal
Gestures and body language
Office size and closed versus open doors
Conversational distance
Touching
Protecting traditional languages
Elements of Culture
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Religious beliefs
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Christianity (Protestant, Catholic, Orthodox)
Hinduism and Sikhism in India
Sunni and Shia Islam
Judaism
Animism
Atheism
Confucianism, Taoism, Buddhism, and
Shintoism in Asia
Less Obvious Elements of
Culture Observed by Hofstede
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Individualism versus collectivism
High/low power distance
High/low uncertainty avoidance
Desire for achievement/affiliation
Long/short time horizon
Kluckhohn-Strodtbeck Framework
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Environment: control, controlled by, or
part of
Time focus: past, present, or future
People: control/don’t trust or free/trust
Purpose focus: accomplishment, leisure,
or spiritual
Individual or group responsibility
Public or private work and lives
Other Elements of Culture
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Trust
Fatalism and locus of control
High context/low context
Idealism versus pragmatism
Monochronic versus Polychronic
Attitudes toward change
Culture Shock
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When placed in a foreign culture people
tend to experience culture shock, the
frustration from having to learn to cope
with new cultural cues and expectations
Stages of Culture Shock
High
Acceptance of New Culture
Understanding
Elation
Frustration
Low
Months Living in New Culture
Cultural Clusters
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Should cultures be defined by national
borders?
Group Activity
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Describe American culture
What elements of American culture
might some foreigners find strange?
Describe one foreign culture
Describe ways that cultural differences
can affect business activities in
particular industries
Acquiring and Using Cultural
Understanding
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Cultural awareness can be improved
Company’s need for cultural knowledge
increases as it
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Moves from one to multiple foreign functions
Increases the number of countries in which it
operates
Moves from similar to dissimilar foreign
environments
Converts from external to internal handling of
international operations
How does culture affect
business?
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Work ethic
Attitudes toward:
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Time
Supervisors and superiors
Quality and reliability
Rewards and promotions
Attitudes and Hiring Practices
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Ethnocentrism is the belief that all elements
of one’s own culture are superior than the
corresponding elements of others cultures
Polycentric staffing involves hiring locals to
manage subsidiaries in each country and
special attention to each culture
Geocentric staffing involves hiring without
regard to cultural heritage or nationality
Need Hierarchy
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Lower-order needs must be fulfilled
prior to higher-order needs
Workers in poor countries motivated by
lower-order needs
People from different countries or
cultures may rank needs differently
Attitudes Toward Change
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The more a change upsets important values,
the more resistance it will engender; attend
to attitudes and needs of culture
Consider the expected cost-benefit
relationship of any adjustments
Resistance to change may be lower if the
number of changes is not too great at any
one time
Discussing proposed change with
stakeholders in advance may reduce
resistance
Attitudes Toward Change
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Employees are more apt to support change
when they see its benefits and they expect
personal or group rewards
Change should be timed to occur when
resistance is likely to be low
International companies should learn things
abroad that they can apply at home