The Three Pillars of International IT

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1 The Three Pillars of International IT Strategy, Culture & National Development Natl Dev Culture Strategy Copyright Karen Loch - All rights reserved 1

2 Questions Does culture matter? 2

3 Questions Does culture matter? Business is Business all over the world Cultural differences explain everything Computer subculture is the same all over the world Cultural differences explain everything 3

4 What is Culture? provides members with images of their basic concerns, principles, ethics, and bodies of manners, rituals, ideologies, strategies, and tactics of self-survival including certain notions of good deeds and bad, various forms of folklore and legends 4

5 What is Culture? The way we give logic to the world begins at birth with the gestures, words, tone of voice, noises, colors, smells, and body contact we experience.... Our culture is what is familiar, recognizable, habitual. It is what goes without saying. Van Maanen & Laurent, The flow of cultures in Organizaition, Theory, and the multinational croproation, NY, 1993 by Ghoshal and Westney. 5

6 Are there Types of CULTURE? 6

7 Are there Types of CULTURE? Within national boundaries Cultural attributes which cross boundaries Arab Latin America Some nations have strong internal cultural differences Canada (English and French) India (14 official languages in India & hundreds of dialects) 7

8 Are there Types of CULTURE? Most nations have intra-regional differences United States: Northeast, West, South Germany 8

9 Are there Types of CULTURE? Corporate culture Proctor & Gamble Microsoft Michelin Toyota 9

10 Are there Types of CULTURE? Professional culture Highly structured formal education On-going professional activities Cross over national cultures 10

11 Can Culture be Managed? 11

12 Is Culture an object or a Process? 12

13 Can Culture be Managed? Contrasting views of the World Organization HAS culture Organization IS culture 13

14 Descriptive Models of Cultural Difference or Similarity Hofstede s Hall s Cultural Contexts 14

15 Dimensions of National Culture Hofstede s dimensions Revering hierarchy Individualism / collectivism Taking care of business Risk avoidance Long term orientation 15

16 HOFSTEDE S STUDY 1980 model 116,000 questionnaires in 50 countries (plus 3 national groups) Conducted over time & 1973 One of the 1st empirical studies of culture in organizations One of the 1st major surveys to substantiate cultural dimensions Defines national culture through 4 (5) dimensions 16

17 Revering Hierarchy: Israel 13 rank and class are less important Germany 35 Netherlands 38 USA 40 Japan 54 France 68 Hong Kong 68 India 77 West Africa 77 Indonesia 78 China 80 Russia 95 rank and class are very important 17

18 Individualism-Collectivism: USA 91 Highly individualistic Netherlands 80 France 71 Germany 67 Israel 54 Russia 50 India 48 Japan 46 Hong Kong 25 China 20 West Africa 20 Indonesia 14 Highly collectivistic 18

19 Taking Care of Business: Japan 95 Tough values Germany 66 USA 62 Hong Kong 57 India 56 China 50 Israel 47 West Africa 46 Indonesia 46 France 43 Russia 40 Netherlands 14 Paternalistic values 19

20 Risk Avoidance: Japan 92 Avoid risk Russia 90 France 86 Israel 81 Germany 65 China 60 West Africa 54 Netherlands 53 Indonesia 48 USA 46 India 40 Hong Kong 29 20

21 Long-term Orientation: China 118 future orientation Hong Kong 96 Japan 80 India 61 Netherlands 44 Germany 31 France 30 USA 29 Indonesia 25 West Africa 16 Russia 10 past and/or present orientation Israel N/A 21

22 Cultural Difference: Australia India Belgium Italy Pakistan Venezuela Hong Kong China Japan Brazil Singapore Spain France Canada UK Sweden Germany USA Netherlands 22

23 Dimensions of National Culture Hall s dimensions (1959, 1976) Space 23

24 Dimensions of National Culture Hall s dimensions (1959, 1976) Space Material Goods 24

25 Dimensions of National Culture Hall s dimensions (1959, 1976) Space Material Goods Friendship 25

26 Dimensions of National Culture Hall s dimensions (1959, 1976) Space Material Goods Friendship Time 26

27 Dimensions of National Culture Hall s dimensions (1959, 1976) Space Material Goods Friendship Time Agreement 27

28 High-context vs. Low context Communication High Context (implicit) Japanese Arab Latin Chinese Mediterranean Indian Low Context (explicit) American English German Scandinavian 28