Cultural Effects

1
Cultural Effects

• Week 8

2
Social Systems

• Business embedded in social systems
• Culture influences social system
• Teaches us our thinking processes
• Passes down through generations
• Types of Culture
• National Culture
• Organisational Culture

3

• Business relationships embedded in both national
  and organisational culture
• Relationship aspects most influenced
• Communication styles
• Trust development
• Use of personal networks
• Outward displays of behaviour
• Attitudes towards relationship development

4
Trust Development

• Cousins Stanwix (2001)
• Relationship types also highlighted
• Exercise on Impact Diagrams
• Japanese Owned subsidiary ______________
• Non-Japanese Owned subsidiary __________
• Supplier to Japanese owned ______________
• Supplier to non-Japanese owned ___________
• What are the main differences?

5
Relationship Management Techniques

• Table 5 Cousins Stanwix
• 9 Approaches where trust development differs
  between Japanese owned and non-Japanese owned

6
Personal Networking

• Three features of personal networks
• Social resourcing
• Continuity of relationships
• Coexistence of trust and cooperation on one hand
  and power and domination on the other
• Network Stability continuity and trust
• Network hierarchy power and reciprocity

7
Personal Networking

• National culture in particular affects personal
  networks
• Guanxi - Chinese
• Blat - Russian
• Zalatwic Sprawy Polish
• Others?
• Italian Mafia
• Old Boys Network/ School Ties

8
Benefits Disadvantages

• Trust development / Legal structures
• Lee and Ellis (2000)
• Benefits table 1
• Disadvantages table 2