Establishing Export Firms International Business Cultures
It is critically important that we turn our transmitters off, and turn our receivers on to better understand different cultures. Chuck Hagel
What is culture?
Culture is the sum total of beliefs, rules, techniques, institutions, and artifacts that characterize human populations. It includes the individual worldviews, social rules and interpersonal dynamics characterizing a group of people set in a particular time and place.
Culture as an Iceberg
What is Stereotyping? Source: http://www.simplypsychology.org/katz-braly.html
Culture Affects all Business Functions Marketing: What motivates people to buy and what do they prefer to buy? Human Resources: What are the local Sociocultural motivators of employees? Production: How do people work in groups? How do groups acquire resources? Accounting & Finance: Controls are based on the perception of trust in people Formal controls compliance through rules and sanctions Informal controls compliance through social norms Preferred Leadership Styles: Relationship between leader and followers Hierarchical? Lateral? Paternalistic? Heroic? 4-7
The Hofstede Cultural Dimensions Model The dimensions: Individualism Collectivism Power Distance Uncertainty avoidance Masculine cultural characteristics Feminine cultural characteristics Indulgence Restraint Indulgencerestraint Individualismcollectivism Masculine- Feminine Individualismcollectivism Culture Uncertainty Avoidance Power Distance
Hofstede s Five Dimensions Individualism-Collectivism Degree of group integration Power Distance Expectation and acceptance of unequal power distribution Uncertainty Avoidance Comfort with uncertainty Masculinity-Femininity Distribution of roles between genders Long-Term Orientation/Confucian Dynamism Level of perseverance in overcoming obstacles not overcome with will or strength 4-9
United States
Germany
China
Ghana
Brazil
Italy
Denmark
India
Israel
International Business Cultures Country Background Advocate Highest Priority Time Orientation Data Needs Negotiating Entertainment The no dilemma Gender Bias Protocol Gestures Gifts Dress Status Needs Greetings Titles/Forms of Address Business Card Exchange Let your host lead
Resources www.geert.hofstede.com Kiss, Bow, or Shake Hands, Terri Morrison and Wayne A. Conaway
What are the Key characteristics of culturally fluent business leaders?
Traits of Successful Cross-Cultural Leaders Adapting Socially Demonstrating Creativity Possessing an Even Disposition Respecting Beliefs Instilling Trust Navigating Ambiguity 2012 Research Study Leading Across Cultures in the Human Age by Tucker International and Right Management
CHINA
20 Tips on Chinese Culture for Successful Business
Confucianism Worldview A system of behaviors and ethics Stresses obligations based up relationship: Ruler and subject Husband and wife Parents and children Brothers and sisters Friend and friend Values duty, sincerity, loyalty, honor, filial piety, respect for age all leading to a stable society.
Doing Business with the Chinese Guanxi Reciprocity the art of doing favors Handshakes common Chinese may look down when greeting Address by title and last name Patience Long and numerous meetings Long-term orientation
Doing Business with the Chinese Gift giving and wrapping (love food baskets) Huge fear of losing face (reputation & respect) Directness with subordinates Local Communist Party Leaders Chinese Patriotism Entertainment Critical Mostly Non-Religious Never Frown
Doing Business with the Chinese No touching Eye contact brief Superstitions Questions salary, age, marital status Compliment Group Punctuality Even demeanor Learn to use chop sticks
Doing Business with the Chinese Don t assume comprehension Chinese won t say no Only a yes is a yes maybe. Read facial expressions, tone of voice and posture Terrific sense of humor laugh at themselves when comfortable with you.