The Culture Challenge in International Business
What is Culture?
Culture can be described as the finer things in life like fine arts, literature and philosophy.
E.B Tylor in 1871 cited that culture is “that complex whole which includes knowledge, belief, art, morals, law, custom, and any other capabilities and habits acquired by man as a member of society.”
Economic Systems
Developed due to the necessities that people need to survive, like food, shelter and water
Capitalist: Goods and services distributed by his or her capacity to pay
Socialist: Goods and services distributed by his or her need
Elements of Culture
Dress and appearance:
Communication and Language:
Sense of self and space:
Food and feeding habits:
Time and time consciousness:
Relationships:
Gender:
Beliefs and Attitudes:
Christianity
Islam
Hinduism
Bhuddism
Confucianism
The study of Cultural Differences
Kluckhohn–Strodtbeck framework : 6 questions that assist the international manager in studying any given culture and comparing it to a different one
Do people believe that their environment controls them, that they control the environment, or that they are part of nature?
Do people focus on past events, on the present, or on the future?
Are people easily controlled and not to be trusted, or can they be
trusted to act freely and responsibly?
Do people believe that individuals or groups are responsible for each
person’s welfare?
Do people desire accomplishments in life, carefree lives, or spiritual
lives?
Do people prefer to conduct most activities in private or in public?
Hofstede framework
Power distance: Orientation towards authority
Uncertanty avoidance: Desire for stability
Individualism
Masculinity