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Cross cultural issues

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Title: Cross cultural issues


1
Cross cultural issues
  • Dr Joan Harvey
  • Joan.Harvey_at_ncl.ac.uk

2
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3
What are we covering today?
  • Understanding of culture and cultural
    differences
  • Looking at two studies using a risk perspective
  • Driving
  • Management differences UK vs Zim
  • Asking the question to what extent do attitudes,
    values amd behaviour vary across cultures?

4
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?

5
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6
Why is cross-culture important?
  • Costly IJV failures
  • Breakdown of expatriate assignments
  • Breakdown of collaborative assignments
  • Product failure, errors, poor quality
  • Failure to understand markets, business partners,
    consumers
  • Misunderstandings can cause aggression, etc.
  • Perception differences, including risk

7
How has culture been investigated and studied?
  • Social anthropology
  • International Business
  • Sociolinguistics and communications
  • Early work in Psychology was limited to things
    such as
  • Differences in perception of values of coins
    amongst children from different ethnic bases
  • Linguistics included class as well as
    cross-cultural differences
  • We will look at several writers today, including
    Hofstede, Trompenaars and Hall

8
Geert Hofstede 1
  • Dutch social anthropologist
  • Obtained attitude data from IBM worldwide in late
    1970s
  • Factor analysed and looked for factors which
    differentiated nationalities
  • Data on 50 countries, but only sufficient N for
    40 in first book
  • Generally accepted as the most important now in
    cross-culture
  • But still limitations in his theory

9
Geert Hofstede 5 factors
  • Masculinity femininity
  • Essentially the differentiation of sex-roles vs.
    both sex-roles considered the same
  • Ambition and desire to achieve vs. social concern
    and interpersonal relationships
  • Power distance
  • The tolerance of small or large power
    differentials Amount of power that can be wielded
  • Uncertainty avoidance
  • Tolerance 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

10
Geert Hofstede
  • All countries will have changed in last 30 years
  • Eastern Europe
  • Developing countries that are now developed
  • Political changes
  • Changes in technology and global communication
  • Migration of peoples
  • Are cross-cultural differences still as
    pronounced?
  • In-group vs out-group explanations

11
Geert Hofstede
  • Issues
  • This study put cross-cultural differences into
    the mainstream rather than as error variance in
    other studies
  • Encouraged other theorists
  • Recent research has allowed many more countries
    to be mapped

12
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
13
Comments 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

14
Examples of other theories a Trompenaars 7
factors
  • Universalism versus particularism
  • Work relationships mixed with personal ones
  • Individualism versus collectivism
  • Affective versus neutral culture
  • Specific versus diffuse relationships
  • Distinct relationships versus diffuse ones
  • Achieving versus ascribing status
  • Earned through achievement or recognised e.g.
    seniority/age
  • Perception of time
  • Sequential monochronic or parallel
    polychronic
  • Relating to nature

15
Example b GLOBAL project
  • Assertiveness
  • Future orientation
  • Gender egalitarianism
  • Humane orientation
  • Institutional collectivism
  • In-group collectivism
  • Performance orientation
  • Power distance
  • Uncertainty avoidance

16
Two more factors that are interrelated.
  • Time perception
  • Polychronic 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 NVCs
  • Low means words are interpreted literally

17
Other dimensions from indigenous social psychology
  • China
  • Confucian values
  • Filial piety
  • Industriousness
  • Giving and protecting face
  • Thrift
  • Guanxi
  • Social networking crucial to business
    relationships
  • Ren ching
  • Respectful exchange of gifts, favours and
    obligations

18
Other dimensions
  • Japan
  • Amae and respect
  • Reliance and dependence upon indulgent love of an
    older person
  • Kanban
  • Concept of whole transcending sum of parts
  • Ringi
  • Upward communications and decision making
  • Sacred treasures-
  • life time employment, seniority, enterprise
    unions/families
  • Harmony and cooperation wa
  • Gakureki Shakai
  • Social system attaching value to education

19
Example 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

20
Other 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

21
Other dimensions
  • Several cultures resent intrusiveness of
    western values, western research methods, e.g.
  • Philippines
  • Sub-Saharan Africa
  • India
  • China

22
Other dimensions
  • Latin American countries emphasis on
  • Respect
  • Family
  • Hierarchy
  • Honour
  • Affiliative obedience
  • Cultural rigidity
  • Machismo
  • Sympatia

23
Other dimensions
  • India
  • Detachment 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

24
Exercise
  • Now to discuss and answer the following
    question
  • What are the factors that might determine
    differences in attitudes to business and risk
    between
  • China
  • UK
  • Italy
  • Present your reasons for three of the factors

25
Effects of cultural differences
  • How society functions
  • Basic values and beliefs- lifestyles
  • Relationships in organizations
  • Gambling and investment behaviours
  • Consumer behaviour
  • Driver behaviour

26
Study into driver behaviour theories for
risk-taking in drivers
  • Risk homeostasis
  • Risk avoidance
  • Sensation seeking
  • Flow, arousal
  • Motivation, intrigue and curiosity
  • Fatigue
  • Vigilance

27
But do these apply across cultures?
  • 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 concept
  • Motivation, intrigue and curiosity- known to be
    conceptually different in many cultures
  • Arousal and fatigue
  • Vigilance- may vary according to cultural norms

28
Did 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!

29
Other findings
  • 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 anxiety
  • Corrrelations of personality factors with F1
  • Significant sex differences for
  • F2 enthusiasm and flow, F3 lapses and F4 anxiety
  • Significant age differences for
  • At fault crashes
  • Annual mileage

30
F3 Lapse and error proneness
UK US
Men 26.02 29.45
Women 28.16 33.18
31
Possible causal cross-cultural differences?
  • Hofstede factors?
  • Uncertainty avoidance or flexibility X
  • Masculinity femininity X
  • Individualism collectivism X
  • Power distance X
  • Long term short term orientation X
  • Other relevant factors
  • High or low context cultures Poss
  • Time perception Poss
  • Risk perception, risk awareness Prob
  • Anger management Prob
  • Motivational differences Prob

32
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
33
Implications
  • 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?

34
Cross-cultural differences?
  • Situational/environmental causes?
  • Driving in US rural areas is much lower stimulus
    driving than UK or Europe
  • Overtaking 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 causes
  • US 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?

35
Quiz 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

36
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

37
For doing business.
  • 7 Trust is important in
  • 8 Seniority or age is important
  • Japan
  • Malaysia
  • USA
  • China
  • Japan
  • Malaysia
  • USA
  • China

38
Study example UK vs Zimbabwean Managers
  • Attitude and motivational differences measured
  • Status, prestige, loyalty
  • Social approval
  • Motive strength and work values
  • 117 African managers, mostly from Zim but a few
    from Botswana 32 women
  • 82 British managers 58 women
  • Similar ages

39
Study results
  • Cultural differences found in
  • Importance of status, position, pride and
    prestige
  • Social approval
  • Loyalty to work colleagues tribal
  • No differences found for
  • Courtesy
  • Accept criticism
  • Admit mistakes
  • Loyalty to friends and family

40
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
41
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

42
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

43
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

44
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45
Summary of cultural difference issues across the
studies
  • Power distance Uncertainty avoidance
  • Individualism-collectivism Masculinity-femininity
  • LT/ST orientation Risk perception
  • Risk aversion Affect, including anger
  • Motivation Need for harmony
  • Respect and piety Trust
  • Responses to errors Violations
  • Context communications Time perception
  • Social approval Groupthink, shift to risk
  • In-group bias and tribalism Leadership/
    management
  • And all these can affect how we work and behave
    in many situations!

46
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-colle
    ctivism into 5 broad groupings.

47
Key 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

48
Thank you for your attention
  • Joan Harvey
  • Newcastle University, United Kingdom and
    Visiting Professor, Czech University of Life
    Sciences CZU
  • Joan.Harvey_at_ncl.ac.uk
  • With thanks to
  • Neil Thorpe, Newcastle University, United Kingdom
  • Corinne Mulley, Professor of Transport Economics,
    University of Sydney, Australia
  • Ludek Kolman, CZU
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