Cultural Environ

7/27/2019 Cultural Environ

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The Cultural EnvironmentsFacing Business


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Culture DefinedCulture: the specific learned norms of a

societythat reflect attitudes, values, andbeliefs

Major problems of cultural collision are likely tooccur if:

-a firm implements practices that do notreflect local customs and values and/or

-employees are unable to accept or adjustto foreign customs.

Prof T. Mathew - SIMSR


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Fig. 2.1: Cultural Influences

on International Business



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Cultural Dynamics

Culturesconsist of societies, i.e., relativelyhomogeneous groups of people, who shareattitudes, values, beliefs, and customs.

Cultures are dynamic; they evolve over time. Cultural value systems are set early in life,

but may change because of:

-choice or imposition

-contact with other cultures.



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The Nation as a Point of Reference

The basic similarity amongst people within

countries is both a cause and an effect ofnational boundaries.

National identity is perpetuated throughthe rites and symbols of a country and a

common perception of history.

Subcultures may link groups from different nationsmore closely than certain groups within nations.



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Cultural Formation and Change

Societal values and customs constantlyevolve in response to changing realities.

Cultural imperialismis brought about by

the imposition of one culture upon that ofanother.

Certain elements introduced from outside

a culture may be known as creolization,indigenization, or cultural diffusion.



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Language as a Cultural Stabilizer

Isolation from other groups, especially

because of language, tends to stabilizecultures.

Some countries see language as being soimportant that they regulate the inclusion

of foreign words and/or mandate the use

of the countrys official language forbusiness purposes.



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Map 2.2: Major Languages

of the World



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Fig. 2.2: Importance of Major

Language Groups: Two Views



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Religion as a Cultural Stabilizer Religion is a major source of both cultural

imperatives and cultural taboos. Major religions include:

-Buddhism

-Christianity

-Hinduism

-Islam-Judaism



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Map 2.3: Major Religions

of the World



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Social Stratification Systems Ascribed group membershipsare defined

at birth; they may include gender, family,age, caste, and ethnic or national origin.

Acquired group membershipsare based

on ones choice of affiliation, such aspolitical party, religion, and social andprofessional organizations.

Social stratification affects both business strategyand operational practices.



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Factors Affecting Work Ethics The desire for material wealth vs. the

desire for leisure (Protestant Ethic) The expectation of success and reward

Assertiveness (Hofstedesmasculinity vs.femininity index)

Needs satisfaction (Maslows Hierarchy)

Motivated employees are normally more productive,and higher productivity leads to lower costs.



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Fig. 2.4: The Hierarchy of Needs

and Need-Hierarchy Comparisons



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Factors Affecting Relationship

Preferences

Power distance, i.e., the psychological andsocial distance between superiors andsubordinates

Individualism vs. collectivismIndividualismrepresents a desire for personal

freedom, time, and challenge.

Collectivismrepresents a dependence on theorganization as well as a need for a safeenvironment.



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Factors Affecting Risk-taking

Behavior

Uncertainty avoidance, i.e., ones tolerance

of risk

Trust, i.e., ones belief in the reliability and

honesty of another Future orientation, i.e., the need for

immediate vs. delayed gratification

Fatalism, i.e., the belief that life is pre-destined, that events are the will of God



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Factors Affecting Information and

Task Processing

Selective perception of cues

Communication context

-low-context cultures[explicit]

-high-context cultures[implicit] Information processing

-monochronic[work sequentially]

-polychronic[multi-task]Whereas idealistic cultures are principle driven,pragmatic cultures are detail driven.



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Factors Affecting the

Communication Process

Spoken language Written language Silent language

-color associations-conversational distance

-perception of time-kinesics [body language and gestures]

Problems in communication may arise, evenwhen nations share the same basic language(e.g., British, Canadian, and American English).



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Managerial Issues Associated with

Cultural Differences

Accommodation of foreigners

Cultural distance[degree of similarity]

Culture shockand reverse culture shock Managerial orientations

polycentric

ethnocentric

geocentric



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Map 2.4: A Synthesis of

Country Clusters



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Factors Affecting Strategies forInstituting Cultural Change

Value systems Cost/benefits of change

Resistance to change

Participation in decision-making

Reward sharing

Role of opinion leaders Timing

Opportunities to learn from abroad



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Implications/Conclusions

Culture is dynamic and evolves over time.

Economic development and globalization

are two engines of cultural change.

In addition to being part of a nationalculture, people are simultaneously part of

other cultures, such as social and

professional associations and businessand government organizations. [continued]



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Host cultures do not always expect firms

and individuals to conform to their norms;in some instances they may choose toaccommodate differences in traditions.

International firms should make aconcerted effort to identify ideas andbehaviors in host countries and foreign

cultures that can be usefully appliedacross the whole of their organizations.



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Determinants of Culture

Culture:

Norms andValue

Systems

Education

EconomicPhilosophy

Political

Philosophy

Religion

Language Social

Structure



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Worlds Religions

10%

43%

18%

20%

5%4%

Christian

Islam

HinduBuddhist

Confucian

Other/Nonreligious



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Spoken Language

20%

6%5% 4%

3%

62%

Other

Chinese

EnglishHindi

Russian

Spanish


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Cultural Environ

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