Ecology
Culture
Personality
Social Behavior
Dr. Attila Yaprak
Consumer
Behavior
1
Questions:
Does culture matter? Should it matter?
Is culture a “multidomestic” concept?
Do we have “cross-cultures” emerging?
Dr. Attila Yaprak
2
Culture: The collective mental programming of
a group of people/nation.
Defining characteristics of culture:



Culture is learned, shared, enduring, and compelling
Cultural meanings and symbols are interrelated
Cultural relativism
Silent language: time, space, friendships, agreements
The organization as a Micro Culture:



Managers as leaders in cultural change (motivation)
Managers as influencers of organizational cultures
Managers as influencers of work and team cultures
Ethnocentrism, Geocentrism, Xenophobia.
Dr. Attila Yaprak
3
How Culture is Studied
Types of cross-cultural studies (Adler)
Ethnographic analysis: process that captures the emic
interpretation of the meaning of sights, sounds, rites, and
from the eyes of the native. Probing the values and
belief systems of the people in a culture, not just the
overt, formal rationalizations of the way things are.
Immersion in a culture provides insight into cultural
orientation/disorientation, role negotiation and reversal,
social exchange and reciprocity, establishing and
sustaining status, coping with factional alliances
maintaining neutrality, working with, nurturing and
enhancing relationships with the local power structure,
etc.
Dr. Attila Yaprak
4
Examples
Examples of anthropologists’ and area specialists’ corporate research:
Upjohn and Eaton Pharmaceuticals: deeper intricacies of the health
care distribution systems in the US, Japan, and the Indonesia.
Ford + Mazda: how cope with the cultural diversity of managers and
employees.
GM: how cope with mergers, acquisitions, and divestitures (EDS)
(Briody).
Silicon Valley firms: how create and nurture cultures that will
engender firm loyalty.
Daimler + Chrysler: how maximize “culture after merger”.
Others: evolution of bureaucratic structures; convergence of
economic and social norms (forbearance, reciprocity); how to cope
with multiple micro cultures locked within (but not inextricably
intertwined) a single organizational framework; power, authority and
limitation structures.
Dr. Attila Yaprak
5
Examples
Examples in marketing and consumer behavior:
Cultural patterns of consumption; symbolic meanings affixed to
products and services (symbolism) and their roles in maintaining
social roles and images; consumption pattern variations across
demographic, ethnic, and subcultural groups (Mexican American);
modifying shopping behavior, modeling the impact of assimilation on
understanding the positioning of products in a larger social and
political order; ethical consequences of consumption; the impact of
cognitive and symbolic patterns on framing market segments and
introducing new products.
Focus on National Character (Clark)
Dr. Attila Yaprak
6
Examples
Focus on Acculturation: changes in attitudes, values and
behavior of one cultural group as a function of its
incorporation into the value standards of another group.
Agents for consumer acculturation (a subset of
acculturation) include direct (workplace, neighborhood)
and indirect (media) influences. Construction and
validation of social reality and social expectations
(Cultivation theory, attribution theory). Media may become
the primary source for the construction and validation of
social reality (implication for advertising).
Dr. Attila Yaprak
7
The Iceberg Concept of Culture
Fine Art
Literature
Drama
Classical Music
(High Culture)
Popular Music
Games
Cooking
Courtship Practice
(Primarily in awareness)
Mythology
Folk Dancing
Rites of Passage
Dress
Humor
Etiquette
Diet
(Folk Culture)
(Primarily out of awareness)
(Deep Culture)
Morels of Ideals
Conception of Beauty
Family Relationships
Nonverbal Communication
Gender Roles
Superior/Subordinate Relationships
Conception of the Self
Arrangement of Physical Space
Preference of Cooperation vs. Competition
Behavior in Public Places
Tempo of Work
Decision-Making Practices
Eye Behavior
Methods of Problem-Solving
Ordering of Time
Nature of Friendship
Conversational Patterns
Region
Conceptions of Status Mobility
Notions about Leadership
Dr. S. Tamer Cavusgil
Dr. Attila Yaprak
8
Cultural Socialization
NATIONAL
CULTURE
Language
Ethnic
Gender
Region
Religion…
PROFESSIONAL
CULTURE
ORGANIZATIONAL
CULTURE
Academe
Business
Banking
Engineering
Computer Programming
Legal
Medical
Military…
Progressive socializations occurring during a person’s life
Dr. S. Tamer Cavusgil
Dr. Attila Yaprak
9
Critical Questions
What is culture, really? Do people identify with national, religious, cultural, civilization grouping? If
culture is a “bundle of characteristics”, do these change, when, and triggered by what type of
stimuli? Is “culture” so complicated a notion that it can never be used to explain behavior
accurately? Can culture embrace conflicting features such that it can produce wholly different
effects at different times? Do cultures operate in isolation or are they always part of a wider mix?
How can we know that it is really culture, and not something else, that has caused some effect?
[Need to work out whether (and/or what extent) culture is (or is becoming) more or less important
within the mix of variables one is looking at to explain a phenomenon].
Is the influence of government (or, say MNCs) rising or falling vis-à-vis that of cultures (are
cultures replacing states)? Do governments influence cultures as much as the other way around?
What cultural effects have globalization and spreading of economic ideas (the “knowledge era”)
had on cultural convergence/divergence? Are cultures now rubbing more against each other than
in the past? Are they coming closer together (which would offset the first effect)? Are tensions
increasing within a cultural group as some try to adjust to the knowledge era while others shun it?
Can these happen simultaneously and lead to unpredictable transformations?
Dr. Attila Yaprak
10
The Influence of Culture on International Relations,
Conflict and Resolution
School of Thoughts:
1. Culture and the Economy: Cultural values and norms equip
2.
3.
4.
people/countries either poorly or well for economic success (Max Weber,
“The Protestant Ethic”, “Asian Values/Confucian Ethic Leading to the Asian
Miracle” etc.)
Culture or Social Blueprint: Connection between cultural factors and
political systems [“Democracy can not be put on like a coat, it is part of
country’s social fabric, decades/centuries-long traditions. Also, the level of
“trust” inherent in a society conditions a nation’s ability to compete. “LowTrust” societies are poor at generating and managing large, complex social
institutions such as MNCs, hence they are at a competitive disadvantages
when compared to “High-Trust” societies.]
Culture and Decision Making: Cultural assumptions act like “filters” (When a
diplomat says “Yes”…)
Culture as Civilization: Clash of civilizations will lead to world conflict
(Samuel Huntington)
Dr. Attila Yaprak
11
Cultural Differences
LOW-CONTEXT
HIGH-CONTEXT
A low-context communication or
message is one in which “the mass of
information is vested in the explicit code”
(Hall, 1976, p.70). Low-context
communication is characterized as being
direct, univocal, absolute, with a focus
on the speaker.
A high-context communication or message is one in
which “most of the information is either in the physical
context or internalized in the person, while very little is
in the coded, explicit, transmitted part of the message”
(Hall, 1976, p.79). High-context communication is
characterized as indirect, ambiguous, qualified, and with
a focus on the receiver.
Indirect, polite, “saving face” (avoid embarrassing,
offending people).
Much of the meaning is implicit.
Meaning is found more in the context surrounding the
words, rather than the worlds themselves. Silent
language. Direct translation not helpful.
Smooth, harmonious relationships are valued.
Saying “no” difficult for Japanese.
East Asians mask negative emotions by remaining
expressionless, or by putting a smile on their face
(Thai’s). Here, showing impatience, frustration, irritation
or anger disrupts harmony and is considered rude and
offensive.
Direct, explicit, frank communication.
Meaning is explicit, straightforward.
Dr. S. Tamer Cavusgil
Dr. Attila Yaprak
12
How to Identify and Classify Cultures
High-context/Low-context Dichotomy Analyzed on the Basis of Five Factors:
Factor
Information
Values
Consumption
patterns
Purchase
behavior
Affinity to new
ideas, products,
and services
High-context
Low-context
Comes from other people combined
with more values and externalities
Affective values are at least equally
important
Consumption patterns are influenced
by others, personal interactions are
very critical
Strong relationships with storekeepers
prevail. Opinion leadership is prevalent.
Attribute orientation is more common
New ideas come from outsiders,
particularly opinion leaders
Dr. Attila Yaprak
Comes from written documents and
mass media
Cognitive values are more dominant
Consumption patterns are established,
mass media influences particularly
print media
More cognitive influences, information
search and activity orientation are
more prevalent
New ideas are part of cognitive
influences perceived from print media
and written literature
Dr. Goskun Sanale
13
Cultural Differences
Deal Focused
Relationship Focused
Task oriented: “Getting down to business!”
“Pushy, aggressive, offensively blunt”. No
time for preliminaries! “Small talk”.
People oriented. Rapport first! “Vague?”
“Inscrutable?” Slow? Ritualistic? Build trust,
rapport: get to know each other. (It took 9
years for VW to negotiate the opening of
an automobile factory in China). Face-toface contact key.
Agreement by specific, legalistic contract.
Impersonal, legalistic, contract-based
approach to dispute settlement-litigation.
Agreement by general trust.
Expect to negotiate the terms of a contract
as conditions change.
Dr. S. Tamer Cavusgil
Dr. Attila Yaprak
14
Cultural Differences
Rigid Time & Scheduling
(Monochronic)
Fluid Time
(Polychronic)
Punctuality is critical, schedules are
set in concrete, agendas are fixed,
business meetings are rarely
interrupted (Worship the clock and
schedule).
Less emphasis on punctuality; not
obsessed with deadlines.
Loose scheduling.
Meeting-within-meetings
simultaneously.
Sometimes keeping the party waiting
signals authority, superiority…may be
deliberate.
Dr. S. Tamer Cavusgil
Dr. Attila Yaprak
15
Cultural Differences
Informal Business Culture
Formal Business Culture
Egalitarian, informal cultures.
Status, hierarchy, power, respect.
“Good day mate!”
“Herr Dr. Muller!”
Would you have your maid sit at the
dinner table with you and guests?
When in an unfamiliar situation,
always err on the side of formality at
first. Dress more formally, follow local
etiquette, address people by their
surname…
Dr. S. Tamer Cavusgil
Dr. Attila Yaprak
16
Cultural Differences
Reserved/Non-verbal
Communication
Expressive/Verbal
Communication
Words, meaning of words.
Loud, facial expression…
Body language, silence in conversation.
Soft spoken.
Silence is Golden! No need to engage in
constant, stream-of-consciousness
blabbing!
Distance behavior. “The space bubble”
around us; the invisible envelope of air.
Touch behavior. Shoulder-patting, elbow
grabbing, back slapping, holding hands!
Gaze behavior. Looking firmly in the eye…
Dr. Attila Yaprak
17
Cross-Cultural Misunderstandings
Not knowing the norms and rules guiding each other’s
communication.
Attitudes and stereotypes which create expectations that
lead people to misinterpret each other’s messages.
Dr. Attila Yaprak
18
Areas where Cultural Awareness is Critical to Success in
Foreign Markets
Initial correspondence and communication
Country orientation
Sales agent or distributor selection
Negotiations
Use of English language
The language of the host country
The issue of trust
Advertising and promotional material
Preparation for trade fairs
Consulates and other US points of contact
Management styles
Dress codes
Socializing with potential partners
Dr. Attila Yaprak
19
Expressions that Describe American Values
Cleanliness is next to godliness
A penny saved is a penny earned
Time is money
Don’t cry over spilt milk
Waste not, want not
Early to bed, early to rise, makes a man
healthy, wealthy and wise
God helps those who help themselves
It’s not whether you win or lose, but how
you play the game
A man’s home is his castle
No rest for the wicked
Dr. Attila Yaprak
Cleanliness
Thriftiness
Thriftiness of time
Practicality
Frugality
Diligence, work ethic
Initiative
Good sportsmanship
Privacy value of personal
property
Guilt; work ethic
20
Stereotypes of Americans held by People in Other
Countries
Outgoing, friendly
Informal
Loud, rude, boastful, immature
Hard working
Extravagant, wasteful
Confident, they have all the answers
Lacking in class consciousness
Disrespectful of authority
Racially prejudiced
Ignorant of other countries
Wealthy
Generous
Always in a hurry
Dr. Attila Yaprak
21
Skills that an American should have to be Effective in a
Foreign Country
Tolerance for ambiguity
Low goal/task orientation
Open-mindedness
Empathy
Communicativeness
Flexibility; adaptability
Curiosity
Sense of humor
Warmth in human relationships
Motivation
Self-reliance
Strong sense of self
Tolerance for differences
Ability to fail
Perceptiveness
Dr. Attila Yaprak
22
Composition of the Cultural Environment of
International Business
Language
Spoken, written, official
languages, linguistic pluralism,
language hierarchy, international languages, mass media
Religion
Sacred objects, philosophical
systems, beliefs & norms,
prayer, taboos, holidays, rituals
Education
Formal education, vocational
training, primary education,
secondary education, higher
education, literacy level, human
resource planning
Law
Common law, code law, foreign
law, home country law,
antitrust policy, international
law, regulation
Politics
Rationalism, sovereignty,
imperialism, power,
rational interests, ideologies,
political risk
Values and Attitudes
Toward: time, achievement,
work, wealth, change,
scientific method, risk-taking
Technology and Material
Culture
Transportation, energy
systems, tools & objects,
communications, urbanization,
science, invention
Dr. Attila Yaprak
Social Organization
Kinship, social institutions,
authority structures, interest
groups, social mobility,
social stratification, status
systems
23
Principle Differences in Basic Cultural Assumptions
Cultural Orientations
Relation to Communication and Action Styles
(in a broad sense)
1. Personalization vs.
depersonalization (concrete space
vs. abstract space):
a.
b.
c.
What the “other” does versus what
the “other” is: emphasis on family,
group membership, age, religion or
social status.
Necessity of being personally acquainted with other people if one is
to communicate with them efficiently vs. ability to communicate
easily with unknown persons.
Who is a member of the group
(family, tribe, clan, professional
society, nation, etc.)
Belonging to the in-group (or reference group) may be a necessary
condition for efficient communication on a specific range of topics,
and/or to be considered as a reliable, bona fide partner.
The relevant size of the in-group
(reference group, membership
group).
For an individual who belongs to the out-group, what are the
prerequisites for assimilation (if any)?
Dr. Attila Yaprak
24
Principle Differences in Basic Cultural Assumptions
(Continue)
Cultural Orientations
Relation to Communication and Action Styles
(in a broad sense)
2. Time pattern:
a.
b.
c.
Economicity of time (“time is
money”).
Monochronism vs. polychronism.
Temporal orientation. Emphasis on
time orientation:
a) Towards the past:
b) Towards the present:
c)
Towards the future:
Is time regarded as a scarce resource or, conversely, as plentiful and
indefinitely available?
Only one task is undertaken at any (preset) time, following a
schedule (“agenda society”), vs. dealing simultaneously with different
tasks, actions and/or communications (polychronism) for
convenience, pleasure and efficiency.
Do people consider that the past is important, that resources must
be spent on teaching history and building museums, referring to oral
and written traditions and past works? Basic assumption: our roots re
implanted in the past and no plant can survive without its roots.
Do people consider that we basically live “here and now”? Not only
should the present be enjoyed but, since it is not always enjoyable, it
must be accepted for what it is: the only true reality we live in (basic
assumption).
Do people easily and precisely envisage and plan their future? Are
they project-oriented, making long-term preparations, appreciating
the achievements of science, and so on? Do they feel that there is a
positive orientation in the passage of time, where the future is
inevitably “bigger and better”?
Dr. Attila Yaprak
25
Principle Differences in Basic Cultural Assumptions
(Continue)
Cultural Orientations
Relation to Communication and Action Styles
(in a broad sense)
3. Attitude towards action:
a.
Mastery of nature vs. subjugation to
nature: existence and degree of
legitimacy of a Promethean
(proactive) view of human life.
b.
Ideologism vs. pragmatism.
c.
“uncertainty avoidance” (Hofstede).
d.
“Masculine” orientation vs.
“feminine” orientation (Hofstede).
People believe that it is possible to cope with any problem or any
situation and that, to mankind, nothing is impossible; evil is when
one does nothing (“master of destiny”) vs. the belief that there are
many situations where people cannot do anything; destiny binds us
and we should not try to find alternatives (fatalistic orientation); evil
is when on does not accept one’s own destiny (“subjugation”).
Ideologism: thinking patterns, communication (style of speech) and
actions should always be set within the context of broad ideological
principles (religious, political, social, legal etc.) vs. pragmatism:
precise issues must be addressed; a practical attitude is favored:
orientation towards problem solving and concrete results.
Tendency to avoid risks (“uncertainty avoidance”), to prefer stable
situations, uncertainty-reducing rules and risk-free procedures, which
are seen as a necessity for efficiency. Or, conversely, a risk-prone
attitude (low “uncertainty avoidance”) where people as individuals
are seen as the engine of change, which is perceived as a
requirement for efficiency.
Dr. Attila Yaprak
26
Principle Differences in Basic Cultural Assumptions
(Continue)
Cultural Orientations
4.Self-concept and concept of others:
a.
b.
c.
d.
Human nature is basically good vs.
evil.
Individualism vs. collectivism.
Group cultures with close physical
contact vs. individualistic cultures
desiring private space.
When evaluating others, emphasis
placed on:
a) Age;
b) Sex;
c) Social class (power distance).
e.
Emphasis placed on the self-concept
perceived as culturally appropriate:
Relation to Communication and Action Styles
(in a broad sense)
Communication and general interaction patterns are based on ab initio confidence
or, conversely, ab initio distrust.
The individual is seen as the basic resource and therefore individual-related values
are strongly emphasized (personal freedom, human rights, equality between men
and women) vs. the group is seen as the basic resource and therefore groups
values favored (loyalty, sense of belonging, sense of personal sacrifice for the
community, etc.).
Tendency to live near to one another, and to be undisturbed by such intimacy.
Conversely, tendency to feel the need for private space around one’s body, and to
resent intrusion into this space (low-context cultures according to Edward Hall).
Who are the persons to be considered trustworthy and reliable, with whom it is
possible to do business?
How should one behave (the question is usually unconscious) to give the correct
appearance: shy/extrovert, arrogant/humble, busy/idle?
a) Self-esteem: low/high;
b) Exercise of power: low/high;
c) Level of activity: strong/week.
Dr. Attila Yaprak
27
Evident Differences
Communication Styles
Significant Groups
A. Family B. Tribe C. Company
Reward Systems
Orientation Toward Technology
Attitude about Work vs. Life
Concepts of Leadership
Managing cultural differences requires understanding them first, whether you
run a business or an academic institution. That’s time-consuming prospect,
regardless of the level at which you analyze them.
On one level, you can use evident differences, such as communications styles;
reward structures; significant groups (family, clan, or employer); concepts of
leadership; attitudes about the place of work in life; and so forth.
Dr. Attila Yaprak
28
Rigorous Models
SYSTEMS
HOFSTEDE
•
•
•
•
•
•
•
•
•
•
•
•
Power/Distance
Uncertainty Avoidance
Individualism/Collectivism
Masculinity/Femininity
Kinship
Educational
Economic
Political
Religious
Association
Health
Recreational
AHTHROPOLOGICAL FRAMEWORK/
ATTRIBUTION THEORY
Dr. Attila Yaprak
29
Rigorous Models
On a deeper level, there are several rigorous analytical models that can be
used:



One such model sees the major elements of a culture—kinship, religion,
education, recreation and health, etc.—as systems within a system.
Another model combines an anthropological framework with a theory of
attribution. The anthropological framework places a culture in terms of its beliefs
about the relation of man to man, man to nature, and man to work. And the
theory of attribution holds that widely varying meanings will be attributed to the
same routine phrase—such as “When can you finish that project?”—by people
representing cultures that are anthropologically different.
A third model, developed by the European Geert Hofstede, places cultures in four
dimensions: “power distance”, or the extent to which a culture regards power as
unequally distributed; “uncertainty avoidance”, the degree to which a culture is
threatened by complexity or ambiguity; “individualism/collectivism”, a culture’s
relative regard for social groups beyond the immediate family; and
“masculinity/femininity”, the relative importance of assertiveness vs. caring in
social interaction. The model rates two or more cultures by gauging the distance
between them in each of these dimensions.
Dr. Attila Yaprak
30
Example 1
In 1985, a Japan Airlines plane crashed, killing 520 passengers
and crew members. The president of Japan Airlines expressed his deep
regret of the incident and then resigned his position. Top airline
executives personally visited every family who lost a relative, to
apologize and express their deep regret.
In 1988, the Vincennes, a US warship, accidentally shot down an
Iranian airliner, killing 290 passengers and crew members. Afterward,
President Reagan and military and government leaders expressed
official regret. However, as observed by Walter Shapiro in Time (July 18,
1988), the regret was notably lukewarm and had a “yes-but” character,
stressing the US’s innocence of malicious intent and Iran’s contribution
to the tragedy through its bellicose conduct in the Persian Gulf.
Dr. Attila Yaprak
31
Example 1
Reaction of Japanese:
Intense, unqualified, regret
Reaction of Americans:
Muted, qualified, regret
When a Japanese does something that harms someone else, he
or she is expected to express personal regret and to act upon that
regret in some concrete way.
In contrast, in the United States, where the adult is viewed more
as a rugged individual sufficient unto him- or herself, regret is relatively
a more private than an interpersonal or collective experience.
Dr. Attila Yaprak
32
Example 2
On January 9, 1991, the Foreign Minister of Iraq, Tariq Aziz, and the
Secretary of the United States, James Baker, met in Geneva to attempt a last
minute compromise that would avoid a war. Seated next to Aziz was the halfbrother of Iraq’s president, Saddam Hussein. The half-brother kept calling
Baghdad to provide Hussein with his evaluation of what was going on. Baker
used the verbal channel of communication almost exclusively, and said very
clearly that the United States would attack if Iraq did not move out of Kuwait.
The Iraqis, however, paid less attention to what Baker said and more attention
to how he said it. Hussein’s half-brother reported to Baghdad that “the
Americans will not attack. They are weak. They are calm. They are not angry.
They are only talking.” Six days later the United States unleashed Desert Storm.
We know what happened to the Iraqis after their cross-cultural
misunderstanding. The best estimate is that they lost about 175,000 of their
citizens, 200 billion dollars in property damage resulted, and to this day the
common people are paying a terrible price.
Dr. Attila Yaprak
33
The Top 10 Stories of 1994
The Associated Press
United Press International
US editors/broadcast-news directors
International subscribers and staff
1.
2.
3.
4.
O. J. Simpson
US elections
Baseball and hockey labor troubles
Susan Smith, who allegedly drowned her sons and claimed they
were kidnapped
5. Nancy Kerrigan-Tonya Harding
6. Haiti
7. Failed health-care reform
8. Southern California earthquake
9. Rwanda
10. Palestinians replace Israeli occupations in Gaza and Jericho
1. Mideast peace process
2. War in Bosnia-Herzegovina
3. South African election; Mandela becomes president
4. Republicans win control of US Congress
5. Civil war in Rwanda
6. Arrest and trial of O. J. Simpson
7. World trade; NAFTA and GATT
8. United Nations; peace-keeping struggles worldwide
9. Haitian President Aristide returned to power
10. Peace process in Northern Ireland
Gemini News Service, London
AP International Poll
Daniel Nelson, Editor
Press and broadcast editors
1. Rwanda massacres
2. Majority rule in South Africa
3. China’s booming economy
4. Advances in human-gene research
5. Yasser Arafat returns to Gaza
6. Russia flounders and attacks Chechnya
7. Rise of the US right
8. Uruguay round complete; WTO agreed on
9. Violence in Algeria
10. Soccer World Cup
1. Mideast peace process
2. Rwanda’s ethnic massacres and refugee crisis
3. South Africa’s elections
4. Bosnia’s civil war
5. US congressional elections
6. North Korea’s nuclear crisis and death of Kim II Sung
7. Estonian ferry disaster
8. US intervention in Haiti
9. Northern Ireland peace process
10. Elections oust Italy’s scandal-plagued parties
Dr. Attila Yaprak
34
The Top Stories of 1994
Asiaweek, Hong Kong
La Nacion, San Jose, Costa Rica
The Editors
Eduardo Ulibarri, Editor
1. Kim II Sung’s death; North Korea’s nuclear
accord with US
2. Serbs beat the UN and NATO in Bosnia
3. Global economic growth lists interest rates,
falling bond and stock market
4. APEC’s summit sets tariff-reduction timetable
for world’s biggest trading area
5. Western liberalism clashes with Asian values
6. Unconditional renewal of China’s MFN statues
marks a new US pragmatism toward Asia
7. Peace pact between Israel and Palestine
liberation Organization implemented
8. South Africa elects Nelson Mandela as its first
black president
9. Genocide in Rwanda
10.Association of Southeast Asian Nations
accepts former Vietnam as member
1. Failure of world powers in the conflict
between Bosnians and Serbs
2. Elections and black-majority government in
South Africa
3. Uruguay round concluded in world trade talks
4. Summit of the Americas; advances toward
free trade
5. End of Democratic Party majority in Congress
6. Nationalist conflicts in the former Soviet Union
7. International population conference in Cairo
8. Advance of fundamentalists in North Africa
9. Middle East peace process
10.Chiapas conflict; assassination of candidate
Luis Donaldo Colosio and elections in Mexicol
Dr. Attila Yaprak
35
The Top 10 Stories of 1994
Newswatch, Lagos
Jeune Afrique, Paris
Ray Ekpu, Editor in Chief
Jean Pierre Bechtold, Managing Editor
1.
2.
3.
4.
5.
6.
7.
8.
9.
1. Rwanda; UN’s inability to prevent genocide
2. Bosnia
3. South Africa: Mandela symbolizes African
Mandela’s election s president
Peace agreement between Arabs and Israelis
Carnage in Rwanda
Bosnia conflict
Moshood Abiola’s detention and trial in Nigeria
Return of exiled President Aristide to Haiti
Irish Republican Army’s cease-fire
Soviet Union’s political problems
Mozambique’s first multiparty elections, end to
20 years of civil war
10.Face-off between US and North Korea
miracle and changes for national reconciliation
4. Nobel Peace Prize; still-fragile agreement in
Middle East
5. Algeria; democracy threatened by Islamists
and military
6. GATT; final act of Uruguay round signed in
Morocco
7. “Cold peace” between US and Russia
8. Northern Ireland discussions
9. Economic war and the creation of trade blocs
10.Rise of Islam creating new fears in the West
Dr. Attila Yaprak
36
Quotes
Roger Smith, Chairman, GM
There is no mind like the American mind. The
highest-educated Japanese people—I won’t say they can’t
chew gum and walk at the same time, that wouldn’t be
right, but they simply do not have the innovative, freethinking spirit that you find in America…Our people are
basically better-skilled and more innovative thinkers than
the Japanese by an enormous factor. Thank God.
Fortune, August 18, 1986
Dr. Attila Yaprak
37
Western workers feel they are selling their souls to
the company to put bread on the table, whereas Asians
perceive doing their job as an act of gratitude to the gods
and Buddha for the blessings of life. To us, honest toil is a
sacred obligation, but tell that to a European and he would
think: “That’s absurd. I suspect the average American
cannot imagine this kind of gratefulness.”
Shintaro Ishihara, in The Voice of Asia: Two Leaders Discuss the Coming Century,
Mahathir Mohamed and Shintaro Ishihara, Tokyo: Kodansha International, 1996.
Dr. Attila Yaprak
38
“The West has its cultural traditions, and I do not wish to
suggest that Eastern logic and culture are always correct or appropriate.
Nevertheless, I would be remiss if I failed to point out what I perceive
as the West’s moral degeneration. Although predominantly Christian, in
recent times Western societies have witnessed an almost complete
separation of religion from secular life and the gradual replacement of
religious with hedonistic values. Materialism, sensual gratification, and
selfishness are rife. The people living in such milieux have nothing to
hold on to. They are as uprooted and directionless as flotsam adrift in
the ocean. Even their pleasure-seeking has begun to bore them, leaving
them totally empty or addicted to the thrills of drugs and other vices.
Surely these are the signs of an impending collapse.”
Mahathir Mohamed, in The Voice of Asia: Two Leaders Discuss the Coming Century,
Mahathir Mohamed and Shintaro Ishihara, Tokyo: Kodansha International, 1996.
Dr. Attila Yaprak
39
“The community has given way to the individual and
his desire. The inevitable consequence has been the
breakdown of established institutions and diminished
respect for marriage, family values, elders, and important
customs, conventions, and tradition. These have been
replaced by a new set of values based largely on the
rejection of all that relates to spiritual faith and communal
life.”
Mahathir Mohamed, in The Voice of Asia: Two Leaders Discuss the Coming Century,
Mahathir Mohamed and Shintaro Ishihara, Tokyo: Kodansha International, 1996.
Dr. Attila Yaprak
40
Before we look at ways of conceiving cross-cultural
differences, a first point to acknowledge is that we should
not overgeneralize—sometimes Westerners classify all
One or two categories and fail to make distinctions that
exit. Or others, or here, classify Americans or others in a
particular way that may not reflect reality and
overgeneralize.
Great differences exist even within a particular
culture and the things I will explore should not be taken as
applying to everyone within a culture.
Dr. Attila Yaprak
41
“The best negotiators are the Japanese because they
will spend days trying to get to know their opponents. The
worst are North Americans because they think everything
works in foreign countries as it does in the USA.”
In fact this is even true in Spain. Spaniards often say
the best business negotiators in Spain are from Valencia,
because of the Phoenician heritage of the people living
there.
Dr. Attila Yaprak
42
VALUES
EXPRESSIONS
Honor
A tiger dies leaving his leather, and a man dies
leaving his name.
There is no younger brother like an elder
brother.
Regard gold as stone.
Respect seniority
Downgraded value
of Materialism
Modesty (should
not show-off)
Thrifty, saving
Cautiousness
An empty wagon is louder.
Many a little makes a mickle.
Cross the river with groping stone.
Dr. Attila Yaprak
43
Important Cultural Variations
1. Individualism – Collectivism
2. Low versus high context communication
3. Uncertainty avoidance
4. Power distance
5. Masculinity - Femininity
Dr. Attila Yaprak
44
Individualism vs. Collectivism
In individualism cultures, emphasis in placed on
one’s own personal goals.
In collectivistic cultures, group goals have
precedence over personal goals.
Dr. Attila Yaprak
45
Individualism vs. Collectivism
Individualism
Collectivism
Loosely knit social framework (“I”)
Tightly knit social framework (“We”)
Employer/employee relationship is
calculative
Employer/employee relationship is a
moral one
Task priority over relationship
Relationship priority over task
Bribing not socially acceptable
Bribing socially acceptable
Nepotism objectionable
Employing members of family
desirable
Openness & direction in work relation
a virtue
Not a virtue to be open & direct
Dr. Attila Yaprak
46
An Unscientific Examination of:
Cultural Values of Sweden
Dr. Attila Yaprak
47
Uncertainty Avoidance
In comparison to members of cultures low in uncertainty
avoidance, members of cultures high in uncertainty avoidance have a
lower tolerance “for uncertainty and ambiguity, which expresses itself in
higher levels of anxiety and energy release, greater need for formal
rules and absolute truth, and less tolerance for people or groups with
deviant ideas or behavior.” (Hofstede, 1979, p.395)
There is a strong desire for consensus in cultures high in
uncertainty avoidance. Members of high uncertainty avoidance cultures
also tend to display emotions more than members of low uncertainty
avoidance cultures. People in uncertainty avoiding cultures “look for a
structure in their organizations, institutions, and relationships which
makes events clearly interpretable and predictable.” (Hofstede, 1991,
p.116)
Dr. Attila Yaprak
48
High Uncertainty Avoidance vs.
Low Uncertainty Avoidance
High Uncertainty Avoidance
Low Uncertainty Avoidance
Behavior rigidly prescribed by written
People live comfortably rules without rules
More formalization, standardization
Less formalization, standardization
Gods are seen as difficult to please and
threatening
Gods are seen as more easy to
communicate with
Short and mid-term planning
Long-term planning
More hurried environment
Life les hurried
Precision and punctuality more important
Precision and punctuality not essential
Do not like deviants
People more tolerant of deviant behavior
Dr. Attila Yaprak
49
Power Distance
Power distance is “the extent to which the less powerful
members of institutions and organizations accept that power is
distributed unequally.” (Hofstede and Bond, 1984, p.149)
People in high power distance cultures see power as a basic
fact in society and stress coercive or referent power, whereas people in
low power distance cultures believe power should be used only when it
is legitimate and prefer to use expert or legitimate power.
Collectivistic cultures tend to focus upon vertical relations where
age, position, experience, knowledge, and gender from the basis for
power distance.
Individualistic cultures tend to focus upon horizontal relations
where rank and authority have relatively less salience than in
collectivistic cultures.
Dr. Attila Yaprak
50
Small Power Distance vs. Large Power Distance
Small Power Distance
Large Power Distance
Parents encourage children’s independence early
Dependence on parents lasts for life
Paternalism is unfavorable
Paternalism the norm
Status differences undesirable
Status difference visible
Achieved status
Ascribed status based on rank, wealth
Old age is negatively evaluated
Old age is looked up to, respected
Desirable to maintain a system of checks and
balance against power abuse
Grievance channels are generally missing and
difficult to establish
Two-way communication encouraged superior
and subordinate (appraisal system)
Two-way communication is between unlikely to
occur between superior and subordinate (no
appraisal system)
Dr. Attila Yaprak
51
Masculinity vs. Femininity
Members of cultures high in masculinity value things,
power, and assertiveness, whereas members of cultures low
in masculinity (i.e., high in femininity) value people, quality
of life, and nurturance.
Dr. Attila Yaprak
52
Masculinity vs. Femininity
Masculinity
Femininity
Performance society
Welfare society
Competitiveness a good thing
Solidarity between people is a good thing
Equity: Reward according to performance
Equality: Reward according to need
Dominant objective is to make individuals
jobs more interesting by providing more
challenges
Dominant objective is to make group work
more rewarding by allowing them to
function as self-contained social units
Machoism behavior is acceptable functional
Machoism behavior disqualifies and
managers as a ridiculous braggart who
can’t be taken seriously
Dr. Attila Yaprak
53
Power Distance Index
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Uncertainty Avoidance Index
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Dr. Attila Yaprak
3-13
57
A Comparison of Some American
and Sinic Cultural Traits
American
Man and
Nature
Sinic
Mechanistic world view: world is material, not The world is essentially spiritual. Man is part
spiritual. Man stands outside nature and
of nature and should be in harmony with it.
should dominate it.
Philosophy The individual is all-important. Individualism
of Life
is preferable to conformity. Life is competitive; it rewards effort with material success.
All activity should have a purpose. Man is
perfectible.
The group is all-important. Conformity and
compromise to maintain harmony are preferable to individualism. Life is cooperative;
it rewards effort with the esteem of one’s
Fellow. Man is a mixture of bad and good
and always will be.
Relations
With
Others
It is dangerous for one to be open and
direct with others. To keep relations harmonious and avoid embarrassment, indirect,
ambiguous language is often necessary.
Formality is good.
One would be open and direct with others.
Communication should be explicit; one
should get to the point quickly. Informality
is important.
Dr. Attila Yaprak
58
A Comparison of Some American
and Sinic Cultural Traits (continue)
American
Sinic
Time
Time is unilinear. Activities should be
scheduled; it is good to plan ahead. Time
is valuable; punctuality is important.
Time is elastic; it can be stretched or
contracted depending on the circumstances.
Punctuality is not important; long delays are
sometimes necessary before taking action.
Social
Structure
All persons should have equal opportunity.
Class distinction is undesirable; status should
be earned. Persons should accord each
other equal treatment.
Social inequalities are to be expected;
society is hierarchical with clearly defined
reciprocities and appropriate behavior
Between inferiors and superiors. Men are
superior to women.
Agreements Agreements should be verbal and explicit.
Business contracts should specify the
mutual obligations of each party in detail,
and they should be legally enforceable.
Agreements should be based on mutual
understanding. The written expression of
the agreement is not very important and
should be flexible. Disputes should be
settled by negotiation, not by law.
Dr. Attila Yaprak
59
A Comparison of Two Cultures—East vs. West
West (i.e., USA)
Results oriented
Job oriented
Professionally oriented
Open society
Loose control
Pragmatic
Individualism
East (i.e., Japan)
Process oriented
Employee oriented
Parochially oriented
Closed society
Tight control
Normative
Collectivism (Value collective achievements)
Wrapping (Out appearance ceremonies; brand names)
From the Ground Up Decision Making (Nemawashi)
(Consensus)
Security (belonging to a Co., a class, a University, etc.)
Circles (family)
“Wa” – Harmony in supreme (Conformity) (Avoid direct
confrontation)
Philosophy of value (quality service, product integrity)
Cohesion-keiretsu system “networks”
Long term relationships/loyalty
Hierarchy (class system)
Dr. Attila Yaprak
60
Western View/Eastern View
Western View
Eastern View
Co-clubbers
Relatives
Siblings
SELF
Relatives
Co-clubbers
SELF
Siblings
Co-workers
Others
Co-workers
Others
Dr. Attila Yaprak
61
A Management Comparison of the US & Japan
US Management
Japanese Management
Short-term planning
Individual decision making
Top-to-bottom decision making
Fast decision making: slow execution
Individual responsibility & accountability
Formal organization structure
Lack of common organization culture
Rapid advancement highly desired
Loyalty to the profession
Frequent performance evaluation
Job insecurity prevails
Managers head of group
Directive style management
Stresses individualism
Control by superior
Long-term planning
Collective decision making
Bottom-to-top decision making
Slow decision making: fast execution
Group responsibility & accountability
Informal organization structure
Well-known common organization culture
Promotion through ranks
Loyalty to the company
Infrequent performance evaluation
Lifetime employment common
Managers part of group
Paternalistic style management
Stresses collectivism
Control by peers
Dr. Attila Yaprak
62
Managing in the New Global Century
Four factors will likely determine industry success in the
new millennium.
Recognition of an altered global economic context,
Capacity to transfer critical capabilities across the world,
Use of computer-based management technology, and
Cultural consciousness of executives and managers.
Dr. Attila Yaprak
63
Global Economic Context
The competition of the 21st century will be commercial, a
struggle to understand and satisfy the (increasingly
sophisticated) consumers of the world.
By the year 2020, China and some other economicallydeveloping countries will command 65-70% of global GDP
while the US, Japan, Germany and other rich, industrial
countries will claim only 30-35%.
Big Emerging Markets (BEMS) will continue to rise in
importance.
Dr. Attila Yaprak
64
Capabilities
Key to meeting global performance expectations will be the
effective transfer of such critical capabilities as six-sigma
quality, patents and trademarks, brand equalities, inventory
replacement and information tracking processes.
Dr. Attila Yaprak
65
Tools
In the 21st century, executives and operating-level
managers dealing with operating level efficiencies and
global distribution of resources will need computer-based,
high-tech help to boost performance. Using information
systems running on enterprise networks, they will need to
tap into corporate data warehouses, conduct analyses with
activity-based software, and manipulate results.
Dr. Attila Yaprak
66
Cultural Consciousness
Managers need to become “forward-thinking, culturally adept” leaders. In
addition to possessing the desire and capacity to acquire a lot of knowledge,
they must be able to synthesize information, build and nurture relationships,
and become globally networked. Indeed, one of the greatest challenges will be
restructuring: globalizing and localizing operations simultaneously, globally
optimizing the enterprise’s value chain, and forming strategic alliances.
For truly effective globalization, managers need to immerse themselves in the
local culture and involve local experience and expertise in their operations
simultaneously (and more importantly) the headquarters will formulate a
central, (integrated) global strategy that effectively ties together local
subsidiaries into an overall worldwide approach. The executive/manager of the
next century will have to be “culturally integrated”, a person who will
understand anthropology as well as business and economics. Cultural
consciousness will become more than learning various foreign languages and
acquiring expertise in area studies; it will require understanding people and
thinking “under their skin”.
Dr. Attila Yaprak
67
Summary
In the next century, “globalization” will mean more than
worldwide sales; it will require management and marketing
experience that is truly international, a range of products
adapted to the needs and purchasing power of customers
(as much as is possible), a multinational investor base,
experience in R & D, production and marketing in many
areas of the world, and a truly “culturally integrated”
management team and workforce.
Dr. Attila Yaprak
68
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