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15 November 2012 Luxembourg Presentation by Ursula Schinzel Doctorate in Business Administration Hofstede in Luxembourg: An intercultural comparison with France and Germany Applying Geert Hofstede in collaboration with Lindab 1
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Page 1: 15 November 2012Luxembourg Presentation by Ursula Schinzel Doctorate in Business Administration Hofstede in Luxembourg: An intercultural comparison with.

15 November 2012Luxembourg Presentation by Ursula Schinzel

Doctorate in Business Administration

Hofstede in Luxembourg: An intercultural comparison with France

and GermanyApplying Geert Hofstede

in collaboration with Lindab

  

Doctorate in Business Administration

Hofstede in Luxembourg: An intercultural comparison with France

and GermanyApplying Geert Hofstede

in collaboration with Lindab

  

1

Page 2: 15 November 2012Luxembourg Presentation by Ursula Schinzel Doctorate in Business Administration Hofstede in Luxembourg: An intercultural comparison with.

15 November 2012Luxembourg Presentation by Ursula Schinzel

Chapter OverviewChapter OverviewAcknowledgementsAcknowledgements

Chapter 1: IntroductionChapter 1: Introduction

Chapter 2: Literature ReviewChapter 2: Literature Review

Chapter 3: MethodologyChapter 3: Methodology

Chapter 4: Data AnalysisChapter 4: Data Analysis

Chapter 5: ConclusionChapter 5: Conclusion

ReferencesReferences

AppendixesAppendixes

2

Page 3: 15 November 2012Luxembourg Presentation by Ursula Schinzel Doctorate in Business Administration Hofstede in Luxembourg: An intercultural comparison with.

15 November 2012Luxembourg Presentation by Ursula Schinzel

Chapter 1: IntroductionChapter 1: Introduction

3

Page 4: 15 November 2012Luxembourg Presentation by Ursula Schinzel Doctorate in Business Administration Hofstede in Luxembourg: An intercultural comparison with.

15 November 2012Luxembourg Presentation by Ursula Schinzel

My Research QuestionMy Research Question The purposes of this study are:The purposes of this study are:

Where does Luxembourg fit in on the 7 Hofstede Where does Luxembourg fit in on the 7 Hofstede cultural dimensions?cultural dimensions?

to explain Luxembourg people’s high scores on to explain Luxembourg people’s high scores on the measure of happiness the measure of happiness

I would like to test the validity of Hofstede’s work in 2010, I would like to test the validity of Hofstede’s work in 2010, being contested, looking at France and Germany, being contested, looking at France and Germany, previously researched, adding entirely new data for previously researched, adding entirely new data for Luxembourg, for which he has only provided estimatesLuxembourg, for which he has only provided estimates..

4

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15 November 2012Luxembourg Presentation by Ursula Schinzel

My Contribution to KnowledgeMy Contribution to Knowledge

My contribution to knowledge is adding My contribution to knowledge is adding the data that I collected about Luxembourg the data that I collected about Luxembourg to Hofstede’s data, as Hofstede bases his to Hofstede’s data, as Hofstede bases his research on Luxembourg on estimates.research on Luxembourg on estimates.

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15 November 2012Luxembourg Presentation by Ursula Schinzel

My originalityMy originality There is no research about Hofstede’s cultural There is no research about Hofstede’s cultural

dimensions in Luxembourgdimensions in Luxembourg Choice of ONE company: LindabChoice of ONE company: Lindab Interviews, Questionnaires at Lindab Interviews, Questionnaires at Lindab

Luxembourg, France and Germany and their Luxembourg, France and Germany and their comparisoncomparison

Differentialisation of the Luxembourger with Differentialisation of the Luxembourger with Luxembourgish NationalityLuxembourgish Nationality

Extrapolation of the pattern of the Extrapolation of the pattern of the LuxembourgerLuxembourger

My results in Hofstede’s maps of the worldMy results in Hofstede’s maps of the world

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15 November 2012Luxembourg Presentation by Ursula Schinzel

Review of the LiteratureReview of the Literature Participant Observation (Primary Data)Participant Observation (Primary Data) Interviews (Primary Data)Interviews (Primary Data) Questionnaires (Primary Data)Questionnaires (Primary Data)

MethodsMethods

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15 November 2012Luxembourg Presentation by Ursula Schinzel

Chapter 2: Literature ReviewChapter 2: Literature Review

8

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15 November 2012Luxembourg Presentation by Ursula Schinzel

Literature ReviewLiterature Review The era before The era before

Hofstede:Hofstede: Maslow, AbrahamMaslow, Abraham McClelland, DavidMcClelland, David Herzberg, FrederickHerzberg, Frederick Rockeach, MiltonRockeach, Milton Hall, EdwardHall, Edward Kluckhohn, Florence and Strodtbeck, FredKluckhohn, Florence and Strodtbeck, Fred

9

The era after Hofstede:The era after Hofstede: Triandis, HarryTriandis, Harry Smith, Peter, B.Smith, Peter, B. Schwartz, ShalomSchwartz, Shalom Trompenaars, Fons & Hamden-Turner, CharlesTrompenaars, Fons & Hamden-Turner, Charles De Mooij, MariekeDe Mooij, Marieke Inglehart, RonaldInglehart, Ronald The GLOBE, House, Robert; Hanges, Paul…The GLOBE, House, Robert; Hanges, Paul… Schein, EdgarSchein, Edgar Bond, Michael, HarrisBond, Michael, Harris Mintzberg, HenryMintzberg, Henry Minkov, MichaelMinkov, Michael Hofstede, Gert JanHofstede, Gert Jan McSweeneyMcSweeney

The era besides The era besides Hofstede:Hofstede:

Scholz, Christian; Böhm, HansScholz, Christian; Böhm, Hans Lewis, Richard D.Lewis, Richard D. Spizzo, DanielSpizzo, Daniel

The era beyond Hofstede:The era beyond Hofstede: Aaker, JenniferAaker, Jennifer Briley, DonnelBriley, Donnel Nakata, CherylNakata, Cheryl Kirkman, Hong, Benet-Martínez, Leung, Hermans, Kempen….Kirkman, Hong, Benet-Martínez, Leung, Hermans, Kempen….

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15 November 2012Luxembourg Presentation by Ursula Schinzel

The era before Hofstede (- 1980):The era before Hofstede (- 1980): Abraham MaslowAbraham Maslow David McClelland David McClelland Frederick Herzberg Frederick Herzberg Milton Rockeach Milton Rockeach Edward Hall Edward Hall Florence Kluckhohn Florence Kluckhohn Fred Strodtbeck Fred Strodtbeck

Culture TheoriesCulture Theories

10

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15 November 2012Luxembourg Presentation by Ursula Schinzel

Chapter 2: Literature ReviewChapter 2: Literature Review

Mc Clelland, David: achievement

motivation, motivation theory.

Mc Clelland, David: achievement

motivation, motivation theory.

Hall, Edward: Anthropologist, lifelong research on culture, with descriptive, qualitative

methods. Lived with Navajo and Hopi Native Americans. Studied France, Germany, compared with America,

mostly descriptive research.

Hall, Edward: Anthropologist, lifelong research on culture, with descriptive, qualitative

methods. Lived with Navajo and Hopi Native Americans. Studied France, Germany, compared with America,

mostly descriptive research.

11

Herzberg, Frederick:

“Two Factor Theory”: Motivator Factors: Achievement, Recognition, Work Itself.

Responsibility, Promotion, Growth. Hygiene Factors: Pay and Benefits, Company Policy and Administration, Relationships with co-workers,

Supervision, Status, Job Security, Working Conditions, Personal life.

Herzberg, Frederick:

“Two Factor Theory”: Motivator Factors: Achievement, Recognition, Work Itself.

Responsibility, Promotion, Growth. Hygiene Factors: Pay and Benefits, Company Policy and Administration, Relationships with co-workers,

Supervision, Status, Job Security, Working Conditions, Personal life.Rockeach, Milton:

Rockeach Value Survey, the terminal values in RVS are: true friendship, mature love, self-

respect, happiness, inner harmony, equality, freedom, pleasure, social recognition, wisdom, salvation, family security, national security, a sense of accomplishment, a world of beauty, a world at peace, a comfortable life, an exciting

life.

Rockeach, Milton: Rockeach Value Survey, the terminal values in

RVS are: true friendship, mature love, self-respect, happiness, inner harmony, equality,

freedom, pleasure, social recognition, wisdom, salvation, family security, national security, a sense of accomplishment, a world of beauty, a world at peace, a comfortable life, an exciting

life.

The era before Hofstede

Maslow, Abraham: hierarchy of needs:

physiological (food, sleep…), safety, love/belonging, esteem,

self-actualization.

Maslow, Abraham: hierarchy of needs:

physiological (food, sleep…), safety, love/belonging, esteem,

self-actualization.

Kluckhohn, Florence, Strodtbeck, Fred: Values Orientation Theory: universal problems

in all human societies, limited numbers for value-based solutions, and different cultures

have different preferences.

Kluckhohn, Florence, Strodtbeck, Fred: Values Orientation Theory: universal problems

in all human societies, limited numbers for value-based solutions, and different cultures

have different preferences.

All American, thinking the world is like the USA

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15 November 2012Luxembourg Presentation by Ursula Schinzel

Hofstede’s Era (1980-2000):Hofstede’s Era (1980-2000): Christian ScholzChristian Scholz Hans Böhm Hans Böhm Richard D. LewisRichard D. Lewis Daniel Spizzo Daniel Spizzo

Culture TheoriesCulture Theories

12

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15 November 2012Luxembourg Presentation by Ursula Schinzel

Literature Review Literature Review BesidesBesides Hofstede. Hofstede.

13

Christian Scholz and Hans Böhm:

a comparative analysis of human resource management (HRM) in

Europe, impacts contexts and different approaches to HRM in Europe, researching in Austria,

Czech Republic, Denmark, France, Germany, Hungary, Italy, Latvia, the Netherlands, Poland, Spain,

Turkey, comparing the UK, North America and continental Europe.

Professor Dr Christian Scholz holds the chair of Business

Administration, Organisation, HRM at University of Saarland. His research in Europe is about

cultural, political and economic differences with the aim of avoiding

fatal and expensive mistakes in doing business in Europe.

Christian Scholz and Hans Böhm:

a comparative analysis of human resource management (HRM) in

Europe, impacts contexts and different approaches to HRM in Europe, researching in Austria,

Czech Republic, Denmark, France, Germany, Hungary, Italy, Latvia, the Netherlands, Poland, Spain,

Turkey, comparing the UK, North America and continental Europe.

Professor Dr Christian Scholz holds the chair of Business

Administration, Organisation, HRM at University of Saarland. His research in Europe is about

cultural, political and economic differences with the aim of avoiding

fatal and expensive mistakes in doing business in Europe.

Richard D. Lewis: explores the relationship between

language and thought, how the mind is conditioned culturally at an early age, he researches about the cultural capital in organisations, about meetings, space and time,

status and leadership, communication style, listening

habits, team-building mechanisms, negotiation and decision-making.

Richard D. Lewis: explores the relationship between

language and thought, how the mind is conditioned culturally at an early age, he researches about the cultural capital in organisations, about meetings, space and time,

status and leadership, communication style, listening

habits, team-building mechanisms, negotiation and decision-making.

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15 November 2012Luxembourg Presentation by Ursula Schinzel

The era after Hofstede (2000 - ):The era after Hofstede (2000 - ): Harry TriandisHarry Triandis Peter B. SmithPeter B. Smith Shalom SchwartzShalom Schwartz Fons Trompenaars & Charles Hamden-TurnerFons Trompenaars & Charles Hamden-Turner Marieke De Mooij Marieke De Mooij Ronald Inglehart Ronald Inglehart The GLOBE: Robert House, Paul Hanges… The GLOBE: Robert House, Paul Hanges… Edgar ScheinEdgar Schein Michael Harris BondMichael Harris Bond Henry Mintzberg Henry Mintzberg Michael Minkov Michael Minkov Gert Jan HofstedeGert Jan Hofstede McSweeneyMcSweeney

Culture TheoriesCulture Theories

14

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Literature ReviewLiterature Review Hofstede’s replications.Hofstede’s replications.

Continued

15

Trompenaars, Fons & Hamden-Turner, Charles:

“Riding the wave of culture”, interviewed 8800 companies in 43

countries, identified 5 dimensions of culture: Universalism versus

particularism, communitarianism versus individualism, neutral versus emotional, diffuse versus specific,

achievement versus ascription.

Trompenaars, Fons & Hamden-Turner, Charles:

“Riding the wave of culture”, interviewed 8800 companies in 43

countries, identified 5 dimensions of culture: Universalism versus

particularism, communitarianism versus individualism, neutral versus emotional, diffuse versus specific,

achievement versus ascription.

De Mooij, Marieke: Global Marketing, Consumer

Behaviour and Culture, co-wrote with Geert Hofstede “The Hofstede

Model”.

De Mooij, Marieke: Global Marketing, Consumer

Behaviour and Culture, co-wrote with Geert Hofstede “The Hofstede

Model”.

Triandis, Harry: Individualism/Collectivism

research. Traditional collectivist Greece.

Triandis, Harry: Individualism/Collectivism

research. Traditional collectivist Greece.

Schwartz, Shalom: identified 7 country-level value orientations surveying 60,000

people in 63 countries: conservatism or embeddedness, intellectual autonomy, affective

autonomy, hierarchy, egalitarianism, mastery, harmony.

Summarised in 3 culture dimensions: embeddedness versus

autonomy, hierarchy versus egalitarianism, mastery versus

harmony.

Schwartz, Shalom: identified 7 country-level value orientations surveying 60,000

people in 63 countries: conservatism or embeddedness, intellectual autonomy, affective

autonomy, hierarchy, egalitarianism, mastery, harmony.

Summarised in 3 culture dimensions: embeddedness versus

autonomy, hierarchy versus egalitarianism, mastery versus

harmony.

Peter Smith: identified 2 country-level

dimensions: egalitarian commitment versus conservatism, utilitarian

involvement versus loyal involvement by analysing the data

from Trompenaars.

Peter Smith: identified 2 country-level

dimensions: egalitarian commitment versus conservatism, utilitarian

involvement versus loyal involvement by analysing the data

from Trompenaars.

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Literature ReviewLiterature Review Continued

16

Ronald Inglehart: World Values Survey: the world’s most impressive

database: questionnaire consisting of 360 questions in over 100 countries with over 420,000 respondents in

several waves (wave 1, 2, 3, 4, 5, wave 6 being carried out 2010-2012). WVS is headquartered in Stockholm, Sweden www.worldvaluessurvey.org . Hofstede has

stated that today he would use data from the WVS and analyse it, instead of collecting new data.

Ronald Inglehart: World Values Survey: the world’s most impressive

database: questionnaire consisting of 360 questions in over 100 countries with over 420,000 respondents in

several waves (wave 1, 2, 3, 4, 5, wave 6 being carried out 2010-2012). WVS is headquartered in Stockholm, Sweden www.worldvaluessurvey.org . Hofstede has

stated that today he would use data from the WVS and analyse it, instead of collecting new data.

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Literature ReviewLiterature Review Continued

17

Cameron, and Quinn: 4 forms of organisational culture

profile: the clan culture, the adhocracy culture, the hierarchy

culture, the market culture.

Cameron, and Quinn: 4 forms of organisational culture

profile: the clan culture, the adhocracy culture, the hierarchy

culture, the market culture.

Schein, Edgar: “Corporate Culture Survival Guide”, when

cultures meet through acquisitions, mergers, joint ventures. Schein’s 10 culture change mechanisms: incremental change through

general and specific evolution, insight, promotion of hybrids within the culture,

systematic promotion from selected subcultures, technological seduction, infusion of outsiders, scandal and explosion of myths,

turnarounds, mergers and acquisitions, destructions and rebirth. 7 dimensions of

culture, 3 levels of culture: artifacts, espoused beliefs and values, basic underlying

assumptions. Schein is a psychologist.

Schein, Edgar: “Corporate Culture Survival Guide”, when

cultures meet through acquisitions, mergers, joint ventures. Schein’s 10 culture change mechanisms: incremental change through

general and specific evolution, insight, promotion of hybrids within the culture,

systematic promotion from selected subcultures, technological seduction, infusion of outsiders, scandal and explosion of myths,

turnarounds, mergers and acquisitions, destructions and rebirth. 7 dimensions of

culture, 3 levels of culture: artifacts, espoused beliefs and values, basic underlying

assumptions. Schein is a psychologist.

Bond, Michael Harris: Chinese Values Survey.

Bond, Michael Harris: Chinese Values Survey.

Mintzberg, Henry: Organisational structure research. the typical 5 configurations of most organisations: operating

core, strategic apex, middle line, techno-structure, support staff. 5 coordinating activities mechanisms in organisations: mutual adjustment,

direct supervision, standardisation of work processes, standardisation of outputs, standardisation of skills. 6 species of

organisations: the entrepreneurial O., the machine O., the professional O., the project O.,

the missionary O., the political O.

Mintzberg, Henry: Organisational structure research. the typical 5 configurations of most organisations: operating

core, strategic apex, middle line, techno-structure, support staff. 5 coordinating activities mechanisms in organisations: mutual adjustment,

direct supervision, standardisation of work processes, standardisation of outputs, standardisation of skills. 6 species of

organisations: the entrepreneurial O., the machine O., the professional O., the project O.,

the missionary O., the political O.

The GLOBE: House, Robert; Hanges, Paul; Javidan,

Mansour; Dorfman, Peter; Gupta, Vipin:

involving 160 researchers worldwide in 62 cultures: nine dimensions of culture: Power

Distance, Uncertainty avoidance, Humane Orientation, Collectivism I

(Institutional Collectivism), Collectivism II (In-Group

Collectivism), Assertiveness, Gender Egalitarianism, Future

Orientation, Performance Orientation.

The GLOBE: House, Robert; Hanges, Paul; Javidan,

Mansour; Dorfman, Peter; Gupta, Vipin:

involving 160 researchers worldwide in 62 cultures: nine dimensions of culture: Power

Distance, Uncertainty avoidance, Humane Orientation, Collectivism I

(Institutional Collectivism), Collectivism II (In-Group

Collectivism), Assertiveness, Gender Egalitarianism, Future

Orientation, Performance Orientation.

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Literature ReviewLiterature Review Continued

18

Minkov, Michael: from Sofia, Bulgaria, co-writes with Geert Hofstede, analyses data from

Ingelhart’s WVS, “Cultural Differences in a Globalizing World”, adds a sixth cultural dimension to

Hofstede: Indulgence versus Restraint (IVR). 4 dimensions of culture: industry vs indulgence, Monumentalism vs flexumility,

hypometropia vs prudence, exclusionism vs universalism.

Minkov, Michael: from Sofia, Bulgaria, co-writes with Geert Hofstede, analyses data from

Ingelhart’s WVS, “Cultural Differences in a Globalizing World”, adds a sixth cultural dimension to

Hofstede: Indulgence versus Restraint (IVR). 4 dimensions of culture: industry vs indulgence, Monumentalism vs flexumility,

hypometropia vs prudence, exclusionism vs universalism.

Hofstede, Gert Jan (his son): concentrates on training and teaching culture, “Exploring

Culture”.

Hofstede, Gert Jan (his son): concentrates on training and teaching culture, “Exploring

Culture”.

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15 November 2012Luxembourg Presentation by Ursula Schinzel

Literature ReviewLiterature Review Going Going beyondbeyond Hofstede. Hofstede.

Continued

19

Donnel Brileyis Professor of Marketing at University

of Sydney, Australia. His areas of expertise are consumer choice and

international marketing, studying the influence of culture and ethnicity on

consumers’ judgments and decisions.

Donnel Brileyis Professor of Marketing at University

of Sydney, Australia. His areas of expertise are consumer choice and

international marketing, studying the influence of culture and ethnicity on

consumers’ judgments and decisions.

Jennifer AakerProfessor at Stanford Graduate School of Business, Happiness Studies, The

Dragonfly Effect.

Jennifer AakerProfessor at Stanford Graduate School of Business, Happiness Studies, The

Dragonfly Effect.

Cheryl Nakata focuses her research on culture on its

theoretical explorations and managerial applications in

international business, marketing, innovation and strategy. She is

Associate Professor of Marketing and International Business at the

University of Illinois at Chicago.

Cheryl Nakata focuses her research on culture on its

theoretical explorations and managerial applications in

international business, marketing, innovation and strategy. She is

Associate Professor of Marketing and International Business at the

University of Illinois at Chicago.

Kirkman, Lowe, Gibson, Nakata, Briley, Hong, Benet-Martínez, Chiu, Morris, Wyer, Hermans, Kempen, Jenner, Mc Nab, Brisling, Worthly, Leung.

Kirkman, Lowe, Gibson, Nakata, Briley, Hong, Benet-Martínez, Chiu, Morris, Wyer, Hermans, Kempen, Jenner, Mc Nab, Brisling, Worthly, Leung.

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New theories:New theories: Jennifer Aaker Jennifer Aaker Donnel Briley Donnel Briley Cheryl Nakata Cheryl Nakata Kirkman, Hong, Benet-Martínez, Leung, Kirkman, Hong, Benet-Martínez, Leung,

Hermans, Kempen….Hermans, Kempen….

Culture TheoriesCulture Theories

20

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15 November 2012Luxembourg Presentation by Ursula Schinzel

Literature ReviewLiterature Review Donnel Briley at University of Sydney.Donnel Briley at University of Sydney.

21

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15 November 2012Luxembourg Presentation by Ursula Schinzel

What did he do?What did he do? Born in the Netherlands in 1928Born in the Netherlands in 1928 IBM HRM research in the 1960sIBM HRM research in the 1960s 116,000 questionnaires116,000 questionnaires Identified 4 cultural dimensions, later added more:Identified 4 cultural dimensions, later added more:

IDV/COLL, UAI, PDI, MAS/FEM, IDV/COLL, UAI, PDI, MAS/FEM, LTO, IVR, MON.LTO, IVR, MON.

Dared to contradict Maslow, Herzberg, McClellandDared to contradict Maslow, Herzberg, McClelland Brought cultural research from the US to EuropeBrought cultural research from the US to Europe Emeritus Professor at Maastricht UniversityEmeritus Professor at Maastricht University http://www.geerthofstede.nl/

Start at 2:36Start at 2:36

22

Geert Hofstede (1928- )Geert Hofstede (1928- )

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15 November 2012Luxembourg Presentation by Ursula Schinzel 23

Culture is measured in terms of all of the followings: symbols, heroes, rituals, values, practices, norms, beliefs, self-perceptions, cognitive ability and behaviours

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15 November 2012Luxembourg Presentation by Ursula Schinzel 24

Heroes are persons that serve as model, such as: • S.A.R. Grand-Duc Henri • Jean-Claude Juncker• Andy+Franck Schleck• Charly Gaul

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15 November 2012Luxembourg Presentation by Ursula Schinzel 25

Symbols are words, gestures, pictures or objects, such as jargon, dresses, national anthem, flags or status symbols http://www.nationalanthems.me/luxembourg-ons-heemecht/

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Rituals are collective activities (Schouberfouer), ways of greeting (Moien) social and religious ceremonies (Octave)

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Values are broad tendencies, feelings that come in pairings such as:evil – gooddirty – cleandangerous – safeforbidden – permittedmoral – immoralugly – beautifulunnatural – naturalirrational - rational

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15 November 2012Luxembourg Presentation by Ursula Schinzel

Hofstede’s Dimensions of CultureHofstede’s Dimensions of Culture

28

Masculinity versusFemininity (MAS)

Power Distance Index (PDI)

Long-Term versus Short-Term

Orientation(LTO)

Indulgence versusRestraint (IVR)

UncertaintyAvoidance (UAI)

Individualism versus Collectivism

(IDV)

Monumentalism(MON)

Hofstede's Dimensions of Culture - Explained Easily :http://www.youtube.com/watch?v=6gJzRS0I7tA&feature=related

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Individualism versus Collectivism (IDV)defined as “people looking after themselves

and their immediate family only, versus people belonging to in-groups that look after

them in exchange for loyalty”Uncertainty Avoidance (UAI)defined as “the extent to which people

feel threatened by uncertainty and ambiguity and try to avoid these

situations”Power Distance Index (PDI)defined as “the extent to which less

powerful members of a society accept and expect that power is distributed unequally”

Masculinity versus Femininity (MAS)defined as “the dominant values in a

masculine society are achievement and success; the dominant values in a feminine society are caring for others and quality of

life”

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15 November 2012Luxembourg Presentation by Ursula Schinzel 30

Long-Term versus Short-Term Orientation(LTO)

defined as “the extent to which a society exhibits a pragmatic future-orientated perspective rather than a conventional

historic or short-term point of view”Indulgence versus Restraint (IVR)defined as “Indulgence stands for

enjoying life and having fun. Restraint stands for regulation of these by strict

social norms”Monumentalism (MON)

defined as “ veneration of heroes by buildings, songs, music, celebrations”

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15 November 2012Luxembourg Presentation by Ursula Schinzel

Limitations of HofstedeLimitations of Hofstede

31

Hofstede’s data from the 1960s might be outdated.

Hofstede used IBM employees as sample for his research.

The questions used in the questionnaire are self-perceptive questions.

Hofstede uses and recommends using secondary data (WVS from Inglehart).

Hofstede’s IBM study didn’t start as an intercultural study but as a ‘work satisfaction survey’.

Hofstede’s cultural model is fixed, not flexible.

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Chapter 3: MethodologyChapter 3: Methodology

32

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15 November 2012Luxembourg Presentation by Ursula Schinzel

Chapter 3: MethodologyChapter 3: Methodology

Review of the Literature.Review of the Literature. Participant Observation (Primary Data).Participant Observation (Primary Data). Interviews (Primary Data).Interviews (Primary Data). Questionnaires (Primary Data).Questionnaires (Primary Data).

33

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Chapter 3: MethodologyChapter 3: Methodology

Participant Observation.Participant Observation.

34

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LuxembourgLuxembourg

35

Unitary parliamentary democracy and constitutional monarchy.Unitary parliamentary democracy and constitutional monarchy. Grand Duke: Henri.Grand Duke: Henri. Prime Minister: Jean-Claude Juncker.Prime Minister: Jean-Claude Juncker. Official languages: Luxembourgish, French, German.Official languages: Luxembourgish, French, German. Capital Luxembourg (90,000 inhabitants).Capital Luxembourg (90,000 inhabitants). Size: 2,586 km2.Size: 2,586 km2. Population total: 511,000.Population total: 511,000. Motto: “Mir wëlle bleiwe wat mir sinn” Motto: “Mir wëlle bleiwe wat mir sinn” “We want to remain what we are” “We want to remain what we are”

Anthem: “Ons Heemecht” – “Our Homeland”Anthem: “Ons Heemecht” – “Our Homeland”

Queen Mary II and Marie-Astrid

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Data Analysis: Data Analysis: ParticipantParticipant

ObservationObservation

36

HRone

American Chamber of Commerce

Chamber of Commerce and Sacred Heart University Luxembourg

PaperJam Business Club

European Commission

ParticipantObservation

LPRA – Luxembourg Professionals Recruiters Association

Brasserie Guillaume

Femmes Leaders Luxembourg

POG – Personnel Officer’s Group

Libreria Italiana

BEE SECURE

Fairs‘Foires’

Continued

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Chapter 3: MethodologyChapter 3: Methodology

Choice of ONE company: Choice of ONE company: Lindab Buildings.Lindab Buildings.

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MethodologyMethodologyLindab Buildings 

Continued

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Chapter 3: MethodologyChapter 3: Methodology

Interviews (Primary Data).Interviews (Primary Data).

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MethodologyMethodology Interviews.Interviews.

Elaboration of questions with Hofstede.Elaboration of questions with Hofstede. Pre-study within the HR community in Luxembourg.Pre-study within the HR community in Luxembourg. Validation by the Director Human Resources Lindab.Validation by the Director Human Resources Lindab. Interviewing of Lindab Luxembourg / France / Germany.Interviewing of Lindab Luxembourg / France / Germany. Transcript writing.Transcript writing. Comparison of the interviews in Luxembourg, France, Comparison of the interviews in Luxembourg, France,

Germany.Germany.

40

Continued

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Chapter 3: MethodologyChapter 3: Methodology

Questionnaires (Primary Data).Questionnaires (Primary Data).

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MethodologyMethodologyQuestionnaire. 1.Questionnaire evaluation together with Hofstede: review and validation.2.Questionnaire translation: English, French, German and, much desired, Luxembourgish.3.Pre-study within the HR community in Luxembourg.4.Questionnaire review with HRD Lindab.5.Questionnaire distribution at Lindab Luxembourg, France, Germany.6.Collection of filled-in questionnaires.7.Excel sheet elaboration for questionnaires.8.Fill-in all questionnaires in Excel sheet.9.Clean-up database on Excel.10. Analyse database on Excel.11. Calculation of mean scores per question in Excel.12. Calculation of IDV, MAS, UAI, PDI, LTO, IVR, MON, in Excel.13. In SPSS: Logistic Regression on Happiness.

Continued

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Chapter 4: Data AnalysisChapter 4: Data Analysis

43

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Chapter 4: Data AnalysisChapter 4: Data Analysis

Participant Observation (Primary Data).Participant Observation (Primary Data). Interviews (Primary Data).Interviews (Primary Data). Questionnaires (Primary Data).Questionnaires (Primary Data).

44

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Chapter 4: Data AnalysisChapter 4: Data Analysis

Participant Observation.Participant Observation.

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Data Analysis: Data Analysis: Participant ObservationParticipant Observation

46

Luxembourg prefers:Luxembourg prefers: Meeting in person, in a Hotel or Bank.Meeting in person, in a Hotel or Bank. Champagne and Cocktail.Champagne and Cocktail. Lunch or Dinner.Lunch or Dinner.

Continued

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Chapter 4: Data AnalysisChapter 4: Data Analysis

Interviews (Primary Data).Interviews (Primary Data).

47

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Hofstede’s Interview AnalysisHofstede’s Interview Analysis

Symbols.Symbols. Values.Values. Heroes.Heroes. Rituals.Rituals.

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Data Analysis:Data Analysis: Interviews: Symbols – Values – Interviews: Symbols – Values – Heroes – RitualsHeroes – RitualsLindab Luxembourg Lindab France Lindab Germany

Symbols Lindab LifeExcellence in constructionThe open door

Lindab is the leader in building construction

StandardisationConquering new marketsCode of ethicsCost AnalysesQuality HandbookProcedures

Values Customer success : Be Nr. 1Down to earthNeatness and orderCorporate social responsibilityMutual trustQuality in workPunctuality

Team workGood relations among employees

Satisfied clientsLong-term orientationReliability

Heroes The director The director The directors at Lindab Luxembourg

Rituals Christmas PartySeniority awards24 hour bicycle race ING Marathon

Christmas Party Birthday cakeChristmas PartyMeeting for success

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Chapter 4: Data AnalysisChapter 4: Data Analysis

Questionnaires (Primary Data).Questionnaires (Primary Data).

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PDI = 35(mQVAL7 – mQVAL2) + 25(mQVAL23 – mQVAL26) + C (pd)PDI = 35(mQVAL7 – mQVAL2) + 25(mQVAL23 – mQVAL26) + C (pd) UAI = 40(m QVAL20 – mQVAL16) + 25(mQVAL24 – mQVAL27) + C (ua)UAI = 40(m QVAL20 – mQVAL16) + 25(mQVAL24 – mQVAL27) + C (ua) IDV = 35(mQVAL4 – mQVAL1) + 35(mQVAL9 – mQVAL6) + C (ic)IDV = 35(mQVAL4 – mQVAL1) + 35(mQVAL9 – mQVAL6) + C (ic) MAS = 35(mQVAL5 – mQVAL3) + 35(mQVAL08 – mQVAL10) + C (mf)MAS = 35(mQVAL5 – mQVAL3) + 35(mQVAL08 – mQVAL10) + C (mf) LTO = 40(mQVAL18 – mQVAL15) + 25(mQVAL28 – mQVAL25) + C (ls)LTO = 40(mQVAL18 – mQVAL15) + 25(mQVAL28 – mQVAL25) + C (ls) IVR = 35(mQVAL12 – mQVAL11) + 40(mQVAL19 – mQVAL17) + C (ir)IVR = 35(mQVAL12 – mQVAL11) + 40(mQVAL19 – mQVAL17) + C (ir) MON = 35(mQVAL14 – mQVAL13) + 25 (mQVAL22 – mQVAL21) + C MON = 35(mQVAL14 – mQVAL13) + 25 (mQVAL22 – mQVAL21) + C

(mo)(mo)

Culture Calculation FormulasCulture Calculation Formulas

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Hofstede’s Cultural Dimension Calculations of the Paper Questionnaire

Table 4.1 Comparison Lindab Luxembourg – Lindab Luxembourg with Luxembourgish nationality – Hofstede’s estimates on Luxembourg (on a scale from 1-100, 1 being the lowest and 100 the highest score)

Lindab Luxembourg

Lindab Luxembourg with Luxembourgish nationality

Hofstede’s estimates on Luxembourg

PDI 36 29 40UAI 97 95 70IDV 51.5 34 60MAS 47 54 50LTO 69 65 64IVR 53.5 55 56MON 10 24 -

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Hofstede’s Cultural Dimension Calculations of the Paper Questionnaire

Lindab Luxem-bourg

Lindab Luxembourg with Luxembourgish nationality

Hofstede’s estimates on Luxembourg

Lindab France

Hofstede’s France

Lindab Germany

Hofstede’s Germany

PDI 36 29 40 32.5 68 37 35UAI 97 95 70 28.8 86 67.5 65IDV 51.5 34 60 41 71 65.5 67MAS 47 54 50 43.5 43 64.5 66LTO 69 65 64 37 63 84.5 83IVR 53.5 55 56 80 48 46 40MON 10 24 - 31 16.5 6.5 9.9

Table 4.2 Comparison Lindab Luxembourg – Lindab Luxembourg with Luxembourgish nationality – Hofstede’s estimates on Luxembourg – Lindab France – Hofstede’s France – Lindab Germany – Hofstede’s Germany

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Hofstede’s cultural dimensions on Luxembourg – France – Germany – UK – Belgium FR – Belgium NL – Italy – the Netherlands NL – China – USA - Japan

Luxbg France Germany UK Belgium FR

Belgium NL

Italy NL China USA Japan

PDI 40 68 35 35 68 61 50 38 80 40 54UAI 70 86 65 35 93 97 75 53 30 46 92IDV 60 71 67 89 71 78 76 80 20 91 46MAS 50 43 66 66 60 43 70 14 66 62 95LTO 64 63 83 51 82 82 61 67 87 26 88IVR 56 48 40 69 57 57 30 68 24 68 42MON - 16.5 9.9 35.4 - - 35.2 11.9 0 57.2 4.0

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CulturalCultural Map Map

PDIPDI--

IDVIDVshows the special place shows the special place

that Lux. Nat. holds: strong that Lux. Nat. holds: strong Collectivism (weak Collectivism (weak Individualism) and Individualism) and

small Power Distancesmall Power Distance

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CulturalCultural Map Map

PDIPDI--

UAIUAIshows the special shows the special

place that Luxembourg place that Luxembourg and Lux. Nat. hold: and Lux. Nat. hold: strong Uncertainty strong Uncertainty

Avoidance and Avoidance and small Power Distancesmall Power Distance

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CulturalCultural Map Map

IVR-

LTO shows the special shows the special

place that Luxembourg place that Luxembourg and Lux. Nat. hold: and Lux. Nat. hold: next to Hofstede’s next to Hofstede’s

FranceFrance

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What is What is Logistic Logistic

Regression?Regression?http://video.mynet.com/1982yucel/Arabic-Super-hits-Belly-Dance/1447061/

start at 1:02Logistic regression allows prediction of group membership, for example, prediction of whether someone is a belly dancer based on gender, occupational category, preferred type of reading material and age. Logistic regression allows to evaluate the odds (the probability) of membership in the group of belly dancers based on the combination of values of the predictor variables, 25 year old female sports professor, teaching hip-hop and reading dance books

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Logistic RegressionDefinition:

Logistic Regression is a statistical method used to model the relationship between a qualitative dependent variable – like for example ‘happiness’ – and a combination of independent variables – like for example ‘taking risk’, ‘free time for life’, ‘level of education’ ‘job level manager or non-manager’, ‘state of health’, ‘religion’

Logistic Regression is calculated in SPSS. SPSS is a computer program from IBM. SPSS means ‘Statistical Package for the Social Sciences’. Between 2009 and 2010 it was called PASW – ‘Predictive Analytics SoftWare’

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Logistic Regression

Regression Coefficients

Odds Ratios

Taking Risk 0.931 2.538Free Time for Life 0.974 2.647Level of Education -0.930 0.394Contradict boss 1.096 2.993State of health 1.485 4.416Importance of Religion

0.677 1.969

Constant -0.628 0.534

Dependent Variable: Being happyTable Logistic regression – Being happy – Regression coefficient and Odds Ratio

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Correlation Matrix* Significant at .05

Taking Risk

Free Time for Life

Level of Education

Contradict boss

State of health

Importance of Religion

Taking Risk 1.000 -

Free Time for Life

0.214 1.000

Level of Education

0.054 -0.213 1.000

Contradict boss

-0.149 0.126 0.182 1.000

State of health 0.105 0.006 -0.279 -0.233 1.000

Importance of Religion

0.195 -0.101 -0.122 -0.065 0.086 1.000

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Constant -0.628

For a person who takes risks +(0.931)x1

And who takes free time for himself/herself

+(0.974)x1

Who has a high level of education +(-0.930)x1

Who dares to contradict the boss +(1.096)x1

Whose state of health is good +(1.485)x1

For whom religion is important +(0.677)x1

e = 3.605

z = 3.605 = 36.7817 + 1 = 37.7817logit = p

with z = with the constantp= p= p = 0.97 The probability for this person to be happy is 0.97. This is a very high probability,

near 1

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Logistic Regression: Logistic Regression: The probability of The probability of Luxembourgers of Luxembourgers of being happybeing happy

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Who does Not take risk

Probability of being

happy = 0.97

Person 1

Person 2

Probability of being

happy = 0.94

Who takes free time for life for him/herselfWho has a high level of educationWho dares to contradict the bossWhose state of health is good

For whom religion is important

Who takes riskWho takes free time for life for him/herselfWho has a high level of educationWho dares to contradict the bossWhose state of health is good

For whom religion is important

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ConclusionConclusion

LuxembourgersLuxembourgers use their language as identifieruse their language as identifier are highly uncertainty avoidantare highly uncertainty avoidant

are long-term orientedare long-term oriented have low power distancehave low power distance

are highly collectivistare highly collectivist and are happyand are happy

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HAPPY

HIGH UNCERTAINTY

AVOIDANCE

LOW POWER DISTANCE

HIG

H C

OLLECTIVIS

M/

LOW IN

DIVID

UALISM

LANGU

AGE AS

IDEN

TIFIER

LONG-TERM ORIENTATION

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PDI (Power Distance Indicator) in Luxembourg is low with 36/100. •Lux.Nat. have an even lower PDI of 29, compared with China (80) and France (68) •Luxembourg being small, hierarchy is not felt that much, boss and employees meet in the same sport clubs, supermarkets, bars, evening events

EXPLANATIONSEXPLANATIONS

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UAI (Uncertainty Avoidance Indicator) is high, near 100 in Luxembourg (97) and Lux.Nat.(95) •Uncertain and unknown situations are avoided, •Secure, regulated, clear life without surprises, is preferred

EXPLANATIONSEXPLANATIONS

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IDV (Individualism versus Collectivism) is medium (51.5) in Luxembourg and diverges from Lux.Nat. (34). •Lux.Nat. are highly collective people, preferring the well-being of the group and country •This is contrary to people in USA (91) and Italy (76), where people take their time for themselves or their immediate family

EXPLANATIONSEXPLANATIONS

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MAS (Masculinity versus Femininity) is medium (47) for Luxembourg and Lux.Nat. (54) •This shows a country where the characteristics of a masculine dominant country = competition and success, and those of a feminine dominant country = caring for others and quality of life, are equally distributed •The most masculine countries are Japan (95), Austria and Venezuela, the most feminine are Sweden, Norway and The Netherlands

EXPLANATIONSEXPLANATIONS

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LTO (Long-Term Orientation versus Short-Term Orientation) is high in Luxembourg (69) and Lux.Nat. (65) •Long-term is characterized by foreseen, and planned events and by perseverance and thrift •Contrary to USA (26) where short-term decisions are taken. •Germany with score of 83 on LTO is the example for a highly long-term oriented country

EXPLANATIONSEXPLANATIONS

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IVR (Indulgence versus Restraint) is medium in Luxembourg (53.5) and Lux.Nat. (55) •In general people in Luxembourg indulge on life, they love profiting from the benefits of life, they enjoy life •Italy has an IVR of 30, where religion, traditions and social rules limit personal enjoying of life

EXPLANATIONSEXPLANATIONS

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MON (Monumentalism) is low in Luxembourg (10) but more than the double for Lux.Nat. (24). •Lux.Nat. love their national traditions and nationality, the Grand Ducal family, National Day, National Hymn and are living their national identity. •The USA (54.2) are living a strong MON, contrary to Japan (4); US people love symbols, banner, heroes, their president, elections…

EXPLANATIONSEXPLANATIONS

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After World War I the need was to assure the national identity, to give value to the concept of ‘citizenship’, why it is important to be ‘Luxembourger’ and the advantages that come with the citizenship. When Nazism (World War II) engulfed small Luxembourg, because for Germans this small land seemed to be German, the Luxembourgish language attained its importance, the discriminating factor to distinguish between who is able to benefit from Luxembourgish citizenship and its advantages, and who not. Luxembourgish language defines the in-group. In order to benefit from all of the advantages of the Luxembourgish nationality, one has to be able to speak Luxembourgish. Luxembourgish is not only a dialect, but the key giving access to the advantages of the rights of the citizenship. French is for bureaucratic problems, German for religious ceremonies, Luxembourgish to define the in-group (Spizzo, 1995).

LANGUAGE AS IDENTIFIERLANGUAGE AS IDENTIFIER

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Hofstede’s Dimensions of Culture Hofstede’s Dimensions of Culture in Luxembourg: in Luxembourg: Why are people in Why are people in

Luxembourg happy?Luxembourg happy?

Luxembourgers are happy because they:Use their language as identifierare highly uncertainty avoidant

are long-term orientedhave low power distance

are highly collectivist

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ConclusionConclusion Evaluation whether my research question and my Evaluation whether my research question and my

objectives were met?: objectives were met?: Yes, I reached my objective: I succeeded in replicating Yes, I reached my objective: I succeeded in replicating

Hofstede’s studies in Luxembourg. Hofstede’s studies in Luxembourg. My contribution to knowledge was adding the data that My contribution to knowledge was adding the data that

I collected about Luxembourg to Hofstede’s data, as I collected about Luxembourg to Hofstede’s data, as Hofstede bases his research on Luxembourg on Hofstede bases his research on Luxembourg on estimates; I did so.estimates; I did so.

My objective was also to come up with a pattern for the My objective was also to come up with a pattern for the Luxembourger. I did so.Luxembourger. I did so.

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ConclusionConclusion Did my research add to the thinking in the literature? Did my research add to the thinking in the literature?

Yes, there is only little in the literature about Yes, there is only little in the literature about Luxembourg, further research is needed.Luxembourg, further research is needed.

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ConclusionConclusion What are my recommendations for the business world What are my recommendations for the business world

from my research?from my research?

Hofstede started an incredible process of research Hofstede started an incredible process of research in in cross-cultural studies, which I recommend should cross-cultural studies, which I recommend should continue and be expanded over time with the continue and be expanded over time with the trendstrends like: writing, print, radio, telephones, telegraphs, like: writing, print, radio, telephones, telegraphs, photography, film, disk and tape recording, television, photography, film, disk and tape recording, television, video, computers, internet, mobile telephones, social video, computers, internet, mobile telephones, social media, globalisation.media, globalisation.

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ConclusionConclusion What are the limitations of my research? What are the limitations of my research?

As As single researcher single researcher I cannot cover the amount of I cannot cover the amount of 160 researchers in the GLOBE or Inglehart’s WVS. I 160 researchers in the GLOBE or Inglehart’s WVS. I should hire people to research in Luxembourg and should hire people to research in Luxembourg and the world.the world.

I researched I researched 1 company 1 company in Luxembourg, France and in Luxembourg, France and Germany. More companies and civil servants should Germany. More companies and civil servants should be researched (45% of the Lux. Nat. are civil be researched (45% of the Lux. Nat. are civil servants). servants).

Time limitation Time limitation (research for a Doctorate, not a (research for a Doctorate, not a lifetime research), more statistics could be made.lifetime research), more statistics could be made.

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ConclusionConclusion Suggestions for further research in the field? Suggestions for further research in the field?

Seeing cultural research more flexible, open, and Seeing cultural research more flexible, open, and investigating in other domains.investigating in other domains.

Linking culture with Linking culture with ‘Happiness studies’,‘Happiness studies’, ‘‘Language as an identifier’, Language as an identifier’, ‘‘Social Media’, Social Media’, ‘‘Psychology’, Psychology’, ‘‘Marketing’, Marketing’, and ‘Communication’and ‘Communication’. . Replicate Hofstede’s studies in other companies in Replicate Hofstede’s studies in other companies in

Luxembourg.Luxembourg.

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ConclusionConclusion What have I learnt from the research project in terms of What have I learnt from the research project in terms of

knowledge and my personal experience? knowledge and my personal experience?

Known people like my supervisors from LGSM, Hofstede, Known people like my supervisors from LGSM, Hofstede, Briley, Burçik, de Mooij, Nakata, Kirkman, and the company Briley, Burçik, de Mooij, Nakata, Kirkman, and the company Lindab. PowerPoint, Word, Excel, SPSS, internet, web blog. Lindab. PowerPoint, Word, Excel, SPSS, internet, web blog.

Hofstede’s estimates on Luxembourg are still valid, because Hofstede’s estimates on Luxembourg are still valid, because Luxembourg has not had a crisis like the Eastern European Luxembourg has not had a crisis like the Eastern European countriescountries. .

My research at Lindab revealed some surprising results about My research at Lindab revealed some surprising results about Luxembourgish society that I personally found intriguing, Luxembourgish society that I personally found intriguing, especially the response rate of over 90%.especially the response rate of over 90%.

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15 November 2012Luxembourg Presentation by Ursula Schinzel

ConclusionConclusion What are my near projects as outcomes from this What are my near projects as outcomes from this

research? research? A A post-docpost-doc distance program: I wish to extend this distance program: I wish to extend this

research and continue my research.research and continue my research. Publication of my thesis (done).Publication of my thesis (done). Publication of articles (in process).Publication of articles (in process). BeBe Professor Professor at a Business School (with ESG ? ) at a Business School (with ESG ? )

(applied)(applied)..

80

Continued

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ReferencesReferences

81

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ReferencesAaker, SmithAdairAveryBitektinBlakeBlodgetBondBradford UniversityBraunBrewerBrileyCameron, QuinnCreswellCronjéCrottsCranstonDavisDe MooijDe LorenzoDenzinDe WaltDiener, Lucas

Dumont, PoirierEckhardtEisenhardtEldridgeElmsFontaineFrey GantenbeinGlaserGordonGreenwaldHaagHagertyHallHave, tenHermans, KempenHerzbergHofstede GeertHofstede Gert JanHong

HoppHoppeHornerHortonHouseHusserlIBMInfo Press LxgInglehartIPSEJamesonJavidanJennerJonesKanayamaKeganKingsleyKirkmanKluckhohn, Strodtbeck

LesterLeungLewisLikertLopez-MencheroLord, GerberLunghiLxg Tourist OfficeMaselandMaslowMcClellandMcGregorMcSweeneyMenardMeyersonMinkovMintzberg

Continued

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ReferencesMogilner, AakerMolardMoraruMoustakaMyersNakataNeefs, LauresOPOCEOrr, HauserPallantpaperJamPetersonPosthumaPrattPrince, HoppeRawlsReisinger RobertsRobertson

RockeachSaunders, Lewis, ThornhillScandulaScheinScholz, BöhmSchwartzSignoriniSinclairSingelisSmithSohnSondergaardSpizzoStatecStraussStutzerTan, KoveosTarasTaylorTreece

TriandisTrochimTrompenaars,Hampden-TurnerTungvan HornVenaikVerbekeVerluiseVroomWebb, CampbellWelterWelzelWilliamsWilsonWorld Values SurveyYinZinkin

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Thank you for your attention


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