Social & Cultural Issues in International Cooperation

7/31/2019 Social & Cultural Issues in International Cooperation

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2011 masslearning.com

Cooperative Strategy

Dr Robert Harris

Culture & Socio-Cultural

Issues in International Cooperation


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What is Culture?

Culture is learned, shared and transmitted

Can be passed on by family, social, state and

religious organisations

Two Types of Cultural Knowledge

Factual : facts that can be studied and understood

Interpretative : requires experience and degree of

empathy.


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What is Culture?

Success of an alliance often depends on

whether it is culturally accepted

Managers must avoid applying their

own cultural values or rules of

behaviour

Self reference criterion trap


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Culture Defined

The sum total of learned beliefs, values

and customs that serve to direct

managerial and employee behaviour in a

particular country market


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Components of Culture: 1

Beliefs:

A large number of mental and verbal

processes which reflect our knowledge

and assessment of products and services


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Cultural Values and their Relevance to

Manager/Employee Behaviour

Source: Schiffman, L.G. & Kanuk, L. L. (2000)

Value Features Relevance To BehaviourAchievement & success Success flows from hard work Justification for acquisition of

goods

Efficiency & practicality Admiration of things that solveproblems

Stimulates purchase of wellfunctioning products

Progress People can improve themselves Ready acceptance of new/improved products

Material comfort The good life Fosters acceptance of

convenience/luxury products

Individualism Being oneself Stimulates acceptance of customised or unique products

External conformity Uniformity of observablebehaviour

Stimulates interest in productsused by others

Youthfulness State of mind that stresses beingyoung at heart

Stimulates acceptance of productsthat promote youthfulness


7/192011 masslearning.com


Values:

The indicators stakeholders use to serve asguides for what is appropriate behaviour,

they tend to be relatively enduring and

stable over time and widely accepted by

members of a particular market




Customs:

Overt modes of behaviour that constitute culturallyapproved or acceptable ways of behaving in specific

situations. Customs are evident at major events in

ones life eg birth, marriage, death and at key events

in the year e.g. Christmas, Easter, Ramadan, etc.



A Cultural Framework

Religion

Values &

AttitudesLanguage

EducationAesthetics

SocialOrganisations

Law & Politics

Technology &

Material Culture

Cultures

Adapted from Terpstra & Sarathy (2000)



Elements of Culture

Aesthetics

Refers to designs, shapes, colours etc.

Need to consider local preferences even if

developing a global brand

Social Organisation

Defines the way people relate to each other:role of men and women, social class, family,

group behaviour etc.



Elements of Culture

Family Unit:fundamental unit of social org.;Information on household units useful

Roles and status:gender roles

Social hierarchy: income, power, religion,wealth - need to understand social stratification

Attitudes to foreign products

Attitudes towards achievement

Attitudes towards change



The Socio-cultural Environment

Understanding of socio-cultural differences is

of prime importance in ensuring success in

foreign alliances:

language religion

social organisations

aesthetics education

plus many more!!



Culture & International Cooperation

Cultural segmentation important in order tooffer the right product and use appropriate

business communications.

Need to understand extent of culturaldifferences in relation to: Language

Needs and wants

Consumption patterns Market segments

Socio-economic factors

Marketing conditions



The Socio-cultural Environment

Firms increasingly need to understand

partners requirements and how to

manage operations across countries

e.g. Honda: Different organisational

structures and synthesis of ResourceBased Management style.



The Main Silent Languages in

Overseas Business: 1

Source: Hall & Hall (1987)

Silent Language Implications For Marketing & Business

- Appointment scheduling

- The importance of being on time

-The importance of deadlines

-Sizes of offices-Conversational differences betweenpeople

- The relevance of materialpossessions

- The interest in the latest

Time

Space

Things



The Main Silent Languages in

Overseas Business: 2

Silent Language Implications For Marketing & Business

- The significance of trusted friends associal insurance in times of stress andemergency

- Rules of negotiations based on laws,moral practices or informal customs

Friendship

Agreements



Cultural Influences on Business

Behaviour

Adapted from: Jeannet and Hennesey (2002)

Cultural Forces Cultural Message Consumer DecisionProcess

Religion

HistoryFamily

Language

Education

Arts

Symbols

MoralsKnowledge

Rules of Behaviour

Selecting

Prioritising WantsDecision Making

Behaviour



Culture & International Cooperation

Discussion Point:

What are the key cultural issues that need to

be considered by managers? Consider how cultural differences may

impact on the business you have chosen for

your assignment:

Product, price, promotion, place,

People, processes and physical elements

Communications, customs, etc.


19/19 2011 l i

Dr. Robert Harris

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Social & Cultural Issues in International Cooperation

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