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National cultural differences and multinational businesses

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... Individualism culture is the degree to which individuals are mixed in to groups. It depicts comparative preference for the individual in converse to the group (Ghemawat & Reiche, 2011). According to Hofstede, Hofstede and Minkov (2010), individualistic cultures stress on the goal of the individual over group goals while collectivistic culture emphasizes group goals over individual goals. ...
... Power distance is the extent to which the less powerful members of the organisation and institutions accept and expect that power is unequally distributed (Hofstede, Hofstede & Minkov, (2010). Members of high-power distance such as Malaysia accept status differentiation and expect to show respect to their superiors (Ghemawat & Reiche, 2011). These status differences may exist even in the organization but it could be based on age, social class or family role but on the other hand low power distance cultures are less comfortable with differences in organizational hierarchy or social class and there is more participation in decision making by everyone in the organization (Ghemawat & Reiche, 2011). ...
... Members of high-power distance such as Malaysia accept status differentiation and expect to show respect to their superiors (Ghemawat & Reiche, 2011). These status differences may exist even in the organization but it could be based on age, social class or family role but on the other hand low power distance cultures are less comfortable with differences in organizational hierarchy or social class and there is more participation in decision making by everyone in the organization (Ghemawat & Reiche, 2011). ...
... These studies emphasize that in Mexico people expect to be told what to do and they need the guidance of another individual who is situated in a higher level of the hierarchical structure. In general terms everyone occupies the place that corresponds to them without questioning what applies for the role of an individual in the society and in the family structure, however, also depending on aspects like age, gender and social class of the individual (Ghemawat & Reiche, 2011). For those organizations characterized by a high degree of power distance, it is common for business partners to be of the same rank, because status is of great importance. ...
... On the one hand, countries with a high degree of individualism, as for example England or the U.S., focus on the importance of independence, autonomy, privacy, recognition, personal achievement and the rights of the individual (Ghemawat & Reiche, 2011). On the other hand, collectivistic countries (e.g. ...
... Japan) and organizations that pronounce the masculine role give a high importance to the achievement of goals, to earn more, to the recognition of doing a good work and to the opportunity to accede to higher hierarchical levels. Feminine cultural values on the other side are for example: caring for the weak, worrying about others, quality of life, equality of sexes, harmony and importance of personal relationships (Ghemawat & Reiche, 2011). For the work environment this means for example that members of societies with a feminine orientation (e.g. ...
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Studies of national and organizational culture have a long tradition within the fields of academic research. The objective of the present study is to describe the cultural aspects that characterize a specific Mexican footwear manufacturing company, based on the cultural model of Geert Hofstede that describes the cultural profile of an organization or a country by the following 6 different cultural dimensions: power distance, individualism-collectivism, masculinity-femininity, uncertainty avoidance, long term – short term orientation and indulgence-restraint. Detailed information of the company´s workers were collected applying a questionnaire based on the Likert scale, which was subsequently processed with SPSS and MS Excel data analysis programs. The present descriptive study contributes to the updating of the characteristics of the Mexican culture and shows partially divergent results in comparison to the results for the Mexican culture of the Hofstede model. This means, compared to Hofstede the present study can confirm for the research object the same tendencies in the dimensions power distance, uncertainty avoidance and indulgence-restraint. However, in the dimensions individualism - collectivism, masculinity - femininity and long term - short term orientation the results for the group of workers of the Mexican company are contrary to the results of Hofstede for the Mexican culture.
... Previous studies show that cross-national cultural differences explain heterogeneity in organizational outcomes and management practices (Bloom & Van Reenen, 2010;Hofstede, 1980)-even beyond administrative attributes, such as governmental policies, laws, and public institutions (Bloom, Sadun, & Van Reenen, 2012;Ghemawat & Reiche, 2011). We propose that national culture, defined as persistent national character (Alesina & Giuliano, 2015;Inkeles & Levinson, 1954/1969 or "collective programming of the mind" (Hofstede, 1980: 25), may affect the degree to which businesses invest in sustainability around the world. ...
... We adopt the definition of culture as a set of values that are shared in a given social group and that distinguish this group from others (Ghemawat & Reiche, 2011). ...
... At the industry level, operating in some sectors may increase or decrease sensitivity to cultural differences. Generally, businesses that sell directly to consumers (rather than to other businesses) are less sensitive to cultural differences, whereas service industries are more sensitive to cultural barriers than industries focused on selling physical products that are relatively insensitive to cultural distance (Ghemawat & Reiche, 2011). Therefore, we expect to see variation in the impact of culture on CSP by industry: ...
Article
How and when does national culture influence corporate social performance (CSP)? We use culture as an important new lens through which to examine CSP-one that has not been explored holistically to date. We first uncover general patterns in a multinational , multi-organizational study of CSP, based on social and environmental metrics, using three different measures of national culture (Hofstede, Schwartz, and GLOBE). We then examine various country-, industry-, firm-, and individual-level moderators of this relationship. We find that culture influences the degree of CSP around the world and that this influence is moderated by how globalized the home country is, which industry the firm operates in, whether it is domestic or multinational, and whether it has board directors of a different nationality. We show that higher CSP is associated with greater uncertainty avoidance, long-term orientation, egalitarianism and power distance, and lower performance orientation and masculinity. Surprisingly, CSP is lower in cultures with higher collectivism and more humane orientation. Our cultural perspective of sustainability offers a new way of seeing why some firms excel in CSP and others lag behind. This paper contributes to practice and theory of sustainable development, with implications for the literature on corporate sustainability and national culture.
... Coloured (8.8%), Indian (2.5%) and White (8.3%) (StatsSA, 2015). Such diversity lends itself to prejudiced interpretations of cues (Ghemawat and Reiche, 2011). The understanding of cultural differences is particularly crucial for successful advertising campaigns, given the proliferation of global trends (Uskul and Oyserman, 2010). ...
... The dissemination of culturally sensitive marketing messages is one of the major challenges marketing practitioners encounter in a culturally diverse market such as South Africa (Ghemawat and Reiche, 2011). Regardless of the ubiquity of the spirit of Ubuntu; the implicit force that govern the values of South African camaraderie (Theron and Theron, 2010); diversity still exists amongst minority groups based on religion, language, and lifestyle (Du Plessis and Rousseau, 2007). ...
... While cultural influences are visible in artifacts, values, practices, norms, rituals, and heroes, some cultural influences are not noticeable as intrinsic culturally sensitive consumer behaviour are often difficult to identify (Sen, Du, and Bhattacharya, 2016). Scholars such as Ghemawat and Reiche (2011) and Chan (2010) argued that globalisation and its agents are the major forces responsible for consumers' convergent cultural attributes. The authors further contend that due regard should therefore be accorded to the hybridisation of cultural values and its implications for marketing communication, as a result of acculturation. ...
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Culture has been reported to be one of the major factors influencing attitudes toward marketing communication. However, identification across prevailing cultural dimensions could have unique implications for attitudes toward marketing communication. This paper examines how African and Indian cultural values may or may not influence attitudes toward marketing communication. It explores how Africans converge with or diverge from Indians with regards to culturally sensitive attitudes toward marketing communication, based on a Marketing Communication-Specific Cultural Values (MCSCV) model adapted from the individualism-collectivism constructs. Attitudes toward marketing were measured based on the advertising scale of the Index of Consumer Sentiment toward Marketing (ICSM) practices. Data generated for this study were based on responses provided by 283 and 92 African and Indian shoppers at the main shopping malls in the most predominant African and Indian townships in Durban, South Africa viz. Umlazi and Chatsworth, respectively. Analysis of Variance (ANOVA) and Categorical Principal Component Analysis (CATPCA) were conducted on the dataset. Findings revealed that both races displayed more individualistic than collectivistic tendencies toward marketing communication, but Africans exhibited more collectivistic tendencies than their Indian counterparts. In addition, respondents' individualistic tendencies have a significant influence on attitudes toward marketing communication which showed that consumers' indigenous cultural disposition play a moderating role on attitudes toward marketing communication. This study builds on the marketing literature by validating the implications of cultural diversity for marketing communication. The study emphasizes how the interplay between target markets' underlying cultural dispositions and cultural values held toward marketing communication, influence the consistency or inconsistency in consumers' attitudes toward marketing communication.
... For instance, religion may influence ethical standards, risk aversion, and corporate social responsibility (CSR) policies (Delios, 2010). MNEs with religious affiliations may have distinctive ownership advantages such as unique brand identities, management styles, and marketing strategies that appeal to religious consumers (Ghemawat & Reiche, 2011). In this context, religion can offer competitive advantages to MNEs, particularly when targeting religiously homogenous markets. ...
... Nonetheless, the presence of religious tension in a host country can have a positive impact on FDI location choices. This is attributed to the potential emergence of new market opportunities, as businesses may find it necessary to tailor their offerings to distinct religious groups separately (Ghemawat & Reiche, 2011). For example, the food and beverage industry may see a demand for halalcertified products or kosher foods in response to religious tensions. ...
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Moroccan outward FDI in African countries: the religious freedom index, religious tension index, religious similarity, and religious diversity index. Using panel data from 27 African countries between 2007 and 2021, our findings show that religious factors significantly influence Moroccan FDI in Africa. A shared Islamic religion increases FDI likelihood, indicating cultural proximity facilitates multinational enterprise adaptation. Additionally, religious freedom and diversity positively affect FDI, supporting cultural adaptability. However, religious tension negatively impacts FDI. These findings highlight the importance of considering religious factors in FDI decisionmaking processes. Policy implications include promoting cultural understanding, encouraging religious freedom, fostering religious diversity, and reducing religious tensions to facilitate investment and enhance economic cooperation in African countries.
... Even though Hofstede's theory is still the most popular method for categorizing and contrasting national cultures, it has some drawbacks in terms of the data collection period that was a long time ago, and it does not take into account the recent social, economic, and political changes. Also, the data collection and analysis process was based on a small subset of cultural members (IBM employees), so its representativeness is deemed questionable (Ghemawat & Reiche, 2011). ...
... There are numerous more frameworks that classify cultures along various dimensions in addition to Hofstede's work, and from which we can mention: Schwartz (2014) declared that the nature of the relationship between the individual and the collective, how to ensure responsible behavior, and how to control how people relate to the natural and social world are the three fundamental concerns of the civilizations. On the other hand, nine aspects were found as a result of The GLOBE study research which addressed both established and novel value categories (Ghemawat & Reiche, 2011). Moreover, Richard Lewis has further categorized people in his bestselling book 'when cultures collide (1996)' into three distinct groups based on behavior rather than nationality or religion. ...
Article
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Organizations face the complex challenge of establishing and upholding principles of ethics that transcend cultural boundaries in an increasingly interconnected global business landscape where ethnocentrism is no longer an option to navigate. This study tries to uncover the various research avenues that aid in understanding business ethics in a crosscultural organizational context through outlining potential directions and providing insights for practitioners and scholars that can help in both navigating the complexities of business ethics in a multicultural setting and in assisting in expanding this field of research. The research involves a systematic review of the literature (SLR) of articles gathered from the Scopus database within management or business, economics, and social sciences categories, published between 2018 and 2023, using a specific composition of keywords. The framework was established based on the papers that were evaluated to describe how business ethics are articulated in a cross-cultural and international setting through five literature clusters, namely: business ethics & behavioral economics in a cross-cultural context, international business, business ethics and CSR across cultures, ethical leadership in a multicultural context and finally unethical behaviors and virtue. Hence, this study contributes to the systematic organization of the academic literature on this subject by offering preliminary grounds to assess the key concepts of the topic through the literature review and the results found and providing future implications that might help academics in investigating in-depth the perceived themes using different variables and/or methods.
... In essence, culture is embedded in everything what we do, what we have, and what we think. Culture is learned through membership in a group and is composed of set of values, assumptions, and beliefs and that influence the attitudes and behaviors of group members [14]. In fact, culture is a set of distinctive spiritual, material, intellectual, and emotional features of society or a social group; it encompasses art and literature, lifestyles, ways of living, value systems, traditions, and beliefs [21]. ...
... The term nation refers to culture, social, economic and political institutions influence how organizations are managed in different environments [16]." In order to analyze and understand national cultural systems, cultures are classified into different levels: individual; group; organizational; industrial, national, and geographic regions [14]. Cultures are also grouped based on inner elements (i.e., history, beliefs, values, and work view), cultural activities (i.e., roles, art, communication patterns, rules, customs, technology, and material culture), and cultural systems (i.e., religion, economic, law, education, social organization, family, health, and politics) [22][23][24]. ...
... Researchers have widely analysed the relationship between export and national culture (Chaiyabut 2013;Ghemawat and Reiche 2011;Nes, Solberg, and Silkoset 2007) and some previous research has sought to analyse the relationship between exports and the Hofstede national cultural dimensions (Chung 2007;Hancioglu, Dogan, and Yildirim 2014). In this article, the authors provide an approach to analysing the relationship between national culture and international trade in terms of the econometric model and the selection of variables. ...
... Christianity accounts for 33% of the world population; Islam, 21%; Hindu, 14% and the non-religious, 16%. In total, there are 19 major religions in the world with 270 large religious groups (Ghemawat and Reiche 2011). Different religions may have different views and traditions concerning dietary difference and alcohol consumption. ...
Article
The objective is to analyse if international trade is affected by different national cultures. International trade of 21 World Bank listed countries is estimated as function of the Hofstede cultural dimensions, gross domestic product and population. First, we estimate the combined Hofstede culture dimensions and find significant positive effects on countries’ international trade. Secondly, we decompose the Hofstede culture dimensions and estimate the effects of each separate dimension on international trade, finding only the MAS dimension to significantly affect international trade. We estimate additional equation versions to account for occasional trade restrictions with no international trade, as well as estimating how international trade varies between years. These additional estimations further support our original findings, and therefore act as robustness check.
... 7 organizations within a country expect and accept that power is distributed unequally." The Power Distance index is an indicator of the level of equality in a society and its tolerance by the powerful members of organizations and institutions (Ghemawat & Reiche, 2011). Hofstede scores Iran as a high Power Distance culture, demonstrating an unequal hierarchical society with centralized power. ...
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This study investigated key cultural value dimensions in samples of undergraduate business students from Iran (n = 40) and China (n = 40). Hofstede’s national culture framework spans Power Distance, Individualism/Collectivism, Uncertainty Avoidance, and Masculinity/Femininity. A survey measured and compared cultural dimension scores between countries. Classroom observations also qualitatively assessed how societal norms shape teaching and learning. Results showed that Iranians accepted greater power inequality, showed more discomfort with unstructured situations, and were more individualist than the strongly collectivist Chinese sample. Both countries were distinctly masculine. Observation data reflected high Power Distance and Uncertainty Avoidance in Iranian classrooms, with professors tightly controlling discourse and censoring student opinions. Chinese classrooms demonstrated more collaboration and student debate. Findings update Hofstede’s country rankings with generational data. Insights can inform educational reforms catering teaching practices to cultural orientations while developing needed competencies. Limitations include sample size and generalizability. Further cross-cultural research should track evolving youth attitudes, translate macro-culture into micro-domains like academia, and leverage understanding to optimize learning systems. This mixed methodology comparing Iranian and Chinese university students on cultural dimensions and academic manifestations makes a novel contribution. Practical implications span cross-cultural understanding, organizational leadership, policy, and culture-specific social initiatives.
... A higher score suggests a tendency towards assertive traits such as competition, aggressiveness, lack of empathy, facts, and conflict whereas a lower score suggests a preference for mediation, empathy, human interaction, emotions, etc [35]. Civil engineering students scored higher than architecture students in this dimension. ...
... Hofstede's cultural research has been selected for this research due to it being, as observed by Chessum et al., [7] likely the most well-known of the cultural models and the most widely accepted and acknowledged metric set for cross cultural studies, as described by Ghemawat & Reiche [20] and also the most widely used. ...
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Geert Hofstede’s classic cultural model has been studied and applied to website design for a number of years. In this paper we examine if Geert Hofstede’s six cultural dimensions can also be applied to search user interface design. Two user studies have been conducted to evaluate the culturally designed search user interfaces, and the findings are reported in this paper. Our first study comprised of 148 participants from different cultural backgrounds. The second study was smaller with 25 participants, also from different cultural backgrounds. The results from these studies have been analyzed to ascertain if Hofstede’s cultural dimensions are suitable for understanding users’ preferences for search user interface design. Whilst the key findings from these studies suggest Hofstede cross-cultural dimensions can be used to model users’ preferences on search interface design, further work is still needed for particular cultural dimensions to reinforce the conclusions.KeywordsCross-cultural information retrievalCross-cultural theoryWebsite designHuman-Computer Information Retrieval (HCIR)Hofstede’s cultural dimensionsHuman-Computer Interaction (HCI)
... Geert Hofstede's cultural research is probably one of the most well-known cultural models and as noted by Ghemawat and Reiche, (2011) the most widely used. Hofstede created six dimensions by which cultures can be compared, (Reid, 2015). ...
Conference Paper
An information seeker’s cultural background could influence their preference for search user interface (UI) design. To study cultural influences Geert Hofstede’s cultural dimensions have been applied to website design for a number of years. In this paper, we examine if Hofstede’s six cultural dimension can be applied to inform the design of search engine user interfaces. The culturally designed search user interfaces have been evaluated in a study with 148 participants of different cultural backgrounds. The results have been analysed to determine if Hofstede’s cultural dimensions are appropriate for understanding users’ preferences on search user interface design. Whilst the key findings from the study suggest Hofstede cross-cultural dimensions can be used to model users’ preferences on search interface design, further work is still needed for particular cultural dimensions to reinforce the conclusions.
... While it is difficult to measure them, cultural differences create a blurred line, and the impact of a national culture can even persist in life-and-death situations like in case of a nuclear security incident [35]. Culture is constructed via inter-subject interaction and based on shared assumptions or beliefs about reality. ...
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Nuclear Power Plants (NPPs) are the most protected facilities among all critical infrastructures (CIs). In addition to physical security, cyber security becomes a significant concern for NPPs since swift digitalization and overreliance on computer-based systems in the facility operations transformed NPPs into targets for cyber/physical attacks. Despite technical competencies, humans are still the central component of a resilient NPP to develop an effective nuclear security culture. Turkey is one of the newcomers in the nuclear energy industry, and Turkish Akkuyu NPP has a unique model owned by an international consortium. Since Turkey has limited experience in nuclear energy industry, specific multinational and multicultural characteristics of Turkish Akkuyu NPP also requires further research in terms of the Facility's prospective nuclear security. Yet, the link between “national cultures” and “nuclear security” is underestimated in nuclear security studies. By relying on Hofstede's national culture framework, our research aims to address this gap and explore possible implications of cross-national cultural differences on nuclear security. To cope with security challenges in the age of hybrid threats, we propose a security management model which addresses the need for cyber-physical security integration to cultivate a robust nuclear security culture in a multicultural working environment.
... Cultural differences have a significant role in influencing the SMEs' awareness, due to the differences between the characteristics that influence a human group's response to its environment (Hofstede, 1997). Cultural differences, if not understood and appreciated well, can also lead to failures in business (Ghemawat & Reiche, 2011), including the "attention failure" toward EPS. With being more widespread and contagious comparing to SARS (Meo et al., 2020), COVID-19 impacted the global economy trajectory, where SMEs are facing decreasing international and national demand (Szymkowski, 2020). ...
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This study draws from the theory of ABV to present a framework for understanding how SMEs trying to manage their exports during a global crisis are expected to behave towards export promotion. Our study underlines the importance of setting up and updating effective and modern communication channels in order to create a positive and more institutionalized interaction between EPS providers and SMEs, taking into account the major communication changes in international business during a global pandemic, which imposed new communication mechanisms. Hence, our model includes the ABV perspective because we believe it is vital for SMEs to put in place effective attention structures to be more attentive to EPS, including (i) a better understanding of awareness by SMEs’ entrepreneurs, (ii) an improved SMEs’ teams debate about the relevance of EPS, in order to guide the firm into an unpredictable environment, and (iii) a better management of the SMEs’ slack resources during export.
... Hence, the leadership styles which work best in western cultures (e.g. US, United Kingdom, Sweden, Canada, Netherland, etc.) characterized by low power distance, low uncertainty avoidance and high individualism(Ghemawat & Reiche, 2011) would not bring the same effect in the Sri Lankan culture. Therefore, there is a need for investigating the applicability of western theories in the Sri Lankan context. ...
Article
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Gamification is one of the most prevalent and debatable issues in the current era, where the application of gamification in different organizational processes can be seen as a normal and common factor in firms. Human resource management practices are vital in organizations and even the problem of managing employee satisfaction and motivation has become a significant issue in organizations. To overcome this problem, the application of gamification can be undertaken in the human resource management procedure. In the present study, the identification of gamification in human resource management has been carried out according to previous research. The study has used thematic analysis. 47 research articles have been compiled on the study and with the use of the PRISMA model the selection of research papers is being undertaken. Consequently, the number selected is nine research articles. These works were discussed in depth to achieve the objectives of the study. According to the documents, gamification is helping to improve human resource management practices and helping to improve employee motivation to ensure that the process is carried out optimally. At the same time, the identification of implementation challenges has also been carried out according to the literature survey. Appropriate training and development actions for staff will ensure that recovery is successful in gamification implementations in organizations.
... Lane et al. (2009) defined culture as a set of common norms indicating "thoughts" or "shoulds" of life that guide the way people behave or interact with others. Hence, culture exists on different levels, for instance, regional, international, organisational, country as well as business levels (Ghemawat and Reiche, 2011;Shachaf, 2008). Common to culture definitions is that it is the set values, beliefs and norms that are shared by a specific group of people . ...
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Team performance is key in each organisation. Hence, cultural effects in teams are a relevant matter of subject clarifying the ambiguous findings from previous research. With this background, we investigate how the macro-constructs of conflict, communication effectiveness, social integration, creativity and satisfaction interact with cultural diversity on team performance in an environment characterised by a largely homogeneous and ethnic workforce. We test our hypotheses on a sample of firms in Thailand. Our results indicate that creativity and satisfaction have a significant positive impact on team performance whereas cultural diversity has a significant positive impact on influencing conflict in a team-based environment. However, cultural diversity has no significant impact on communication effectiveness and social integration, and it has no significant impact on team performance. The key theoretical contributions from our study are that cultural diversity can contribute to conflict even in a team composition that is seemingly cohesive and homogeneous in nature. Further, our study establishes that creativity and satisfaction have a positive effect on team performance even in the context of a homogeneous and ethnically majority-based team. For the practitioners, the results of the study indicate that initial actions need to be taken by the leaders of multicultural teams as they create teams to avoid the initial pitfalls due to conflict.
... Cultural differences have a significant role in influencing the SMEs' awareness, due to the differences between the characteristics that influence a human group's response to its environment (Hofstede, 1997). Cultural differences, if not understood and appreciated well, can also lead to failures in business (Ghemawat & Reiche, 2011), including the "attention failure" toward EPS. ...
... This is the consequence of religious divisions, geographical location, history, the current political situation, economic doctrine, etc. (Barkley & Eggertsson, 2017, p. 32). Dan (2013) suggests that business attitudes are affected by art, tradition, language, lifestyle and manners, history, museums, values and beliefs, sports, etc. Ghemawat and Reiche (2011) analyzed 30 countries with respect to Hofstede's criteria. They noticed that cultural diversity makes it more difficult for businesses to cooperate, and poses many challenges to international corporations. ...
Article
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This article discusses connections between dimensions of culture and the size of the shadow economy in the European Union member states. Critical perusal of the literature led to the development of the theoretical ground, while statistical analysis revealed connections between the shadow economy and the dimensions of culture. The research findings suggest a strong stochastic relation of the culture in a given country and the size of its shadow economy. Countries with a high level of complacency, distrust of the authorities, collectivism and aversion to uncertainty are characterized by shadow economies of a substantial size.
... Boldley (1994), indicated that culture contains what people think, what people do, and what they produce, culture then shapes the values of the members of society, shapes their assumptions, shapes their perceptions and behaviors. Ghemawat & Reiche (2011), defined culture as a set of shared values, assumptions and beliefs that are learned through belonging to a group, which influences the attitudes and behaviors of group members. In this small paragraph of what is culture, two main ideas are derived: first, culture can be recognized as a collection of experiences that establishes a group of another. ...
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The concept sociocultural is characterized by the extreme diversity of its uses and its definitions. Therefore, when making a quick review in the literature of social science dissemination, there is no precise definition, but rather a list of decreasing parameters, such as age, sex, emplo - yment status, standard of living, purchasing power, the course of life through (not) social mobility, the nature of leisure (in relation to the notion of purchasing power and its more or less cultural aspect), etc. The purpose of this chapter is provide a synthesis of these defining and no - tional aspects
... Additionally, for the national culture concept it is important to note that even though Hofstede's dimensions are very helpful to compare one culture with another, those dimensions are only representative at a national level and do not apply to each individual member of this culture (Ghemawat and Reiche 2011). Therefore, results of any study, including this dissertation should be considered as a nation's average rather than applying it to particular people or companies due to spatial homogeneity which was already outlined by Hofstede (1980), emphasizing the difference of culture at national and organizational level. ...
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Abstract Major studies on FDI looks at location, technology, policy, availability of natural resources, skilled labor, state support, climate, political and economic advantages for investment decisions. There are few studies that look at cultural factors affecting FDI decisions in service. This paper provides qualitative analysis of the impact of national culture on the flow of foreign direct investment in the service sector within the context of Germany. In particular, the paper discusses the cultural logic of German foreign direct investment in the service sector. It argues that inward FDI in the service sector was actually substantially more affected by cultural distance compared to outward FDI. The study finds that it is important to distinguish between inward and outward FDI to assess the cultural logic of German FDI in the service sector.
... In the obtained literature, the authors have defined an 'expatriate' as an individual who is assigned to work and live in a foreign country (Tahir & Ismail, 2007). The expatriate contributes a significant part in "maintaining the organizational structure and philosophy of multinational corporations (MNCs) while following the rules and regulations of work within the host country" (Ghemawat & Reiche, 2011). In the private sector, the expatriate managers are mostly positioned in MNCs while in the public sector, they are primarily positioned in diplomatic posts. ...
Conference Paper
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Malaysia is one of the countries which welcome expatriates from all over the world to fill the need of skilled employees. This paper provides and overview of how cultural divergence influence expatriates performance in Malaysia. The main purpose of this study is to identify the notable issues which directly or indirectly, positively or negatively influence expatriate’s performance in day to day work. This study reviewed 55 papers related to cultural divergence, employee performance, cultural intelligence, and human resource management practices in Malaysia. The finding highlights that expatriates experience cultural clashes between foreign and local values, which pose direct influences on expatriates’ performance. This study contributes to the body of knowledge in the cross-cultural management field as well as practical implications to expatriating firms. Finally, the research findings have implications for both Malaysian and International Human Resource Management (IHRM) researchers and managers.
... We therefore suggest to compare local versus multinational companies as a determining factor. Our reasoning is that although these multinationals adapt to the organisation's national culture, they tend to keep the national culture of the headquarters as a frame of reference (Ghemawat & Reiche, 2011;Hofstede et al., 2010). ...
Article
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Food safety outbreaks are recurrent events, which regularly cost human lives. Food safety goes beyond food safety management systems; an organisation's prevailing food safety culture, and its internal and external environment must also be considered. This study introduces a research framework to analyse crucial food safety culture elements, and characteristics of the internal (i.e. food safety program, product riskiness, and vulnerability of food production system) and the external company environment (i.e. national values and food safety governance characteristics). We hypothesised that companies producing high-risk products are more likely to demonstrate a proactive food safety culture. We used the framework to assess nine companies producing low, medium, and high-risk products in Zimbabwe, as a case of a transition economy. Results showed no direct relationship between product riskiness and food safety culture, which negated our hypothesis. Other variables explored in this study could have moderated the relationship. We found that the vulnerability (i.e. susceptibility to microbial contamination) of the food production system could be associated with an organisation's food safety culture. Moreover, the external environment could have shaped the prevailing food safety culture. In particular, food safety governance and national values seem to be reflected in the way food safety was prioritised, food safety programs were designed and implemented, the prevailing food safety culture, and the observed food safety behaviour. Further research could investigate the role of the external environment in an organisation's food safety culture by evaluating companies in countries operating with different food safety governance approaches and national values.
... A famous example that can be used to highlight this is the series of airplane crashes in Korea from the 1970's to the 2000's. This is explained by (Ghemawat & Reiche, 2011). The paper reports that the principal reason for all the crashes that occurred were due to Korea's culture of people not questioning their superiors' decisions. ...
Article
The increased logistics complexity due to supply chain globalization requires a deeper understanding of a country’s logistics performance. This performance is usually captured through infrastructure, services and procedure elements and understood in operational and economical terms. This thesis adds a social view to understand logistics performance variation across countries through focusing on their national culture dimensions. Using secondary data from the international Logistics Performance Index (LPI) report as well as the scores from Hofstede’s national culture dimension surveys, the impact of national culture on logistics performance was explored. Statistical results showed Power Distance and Uncertainty Avoidance dimensions were found to have a negative correlation with the LPI while Individualism as well as Long Term Orientation were both positively correlated to the LPI. This cultural understanding adds to the growing social literature research on logistics performance and can guide logistics managers in their decisions regarding where and when to locate their resources.
... The first hypothesis is based on the previous analyses on the relationship between culture and international trade, mostly on the exports component (Chaiyabut, 2013;Ghemawat and Reiche, 2011;Nes, Solberg, and Silkoset, 2007). ...
Conference Paper
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Business and economic decisions of individuals are influenced by cultural values. The current study investigates the impact of Eastern European culture on international trade. Well known Hofstede (1980) cultural dimensions are measured with unique proxies and their impact on the international trade (imports and exports) of Eastern European Countries (EEC) is analysed. Standalone and panel (fixed effect) regression models have been applied to the 20 years' data (1996-2015) of three representative countries (Poland, Lithuania, and Romania). Overall power distance is decreasing while uncertainty avoidance is increasing in the Eastern European countries over the time. The results show that power distance has a significant negative relationship with both imports and exports while individualism has a significant positive relationship with the imports and exports of the EEC. Uncertainty avoidance and masculinity vs femininity dimensions have no significant impact on the international trade of the region. Findings of the study may help the policy makers to increase the international trade of these countries by focusing on the influence of particular cultural dimensions.
... It was hypothesised that Russian and Dutch respondents will have significantly different scores for task and relationship orientations and the current study supported these hypotheses as Russian respondents appeared to be more task-oriented and more relationship-oriented than Dutch respondents. This study proves the suggestion by Ghemawat and Reiche (2011, p.3) that "dealing with national cultural differences therefore requires not only knowledge about adequate behaviors but, more importantly, an understanding of deeper-level assumptions and values that explain why certain behaviors are more appropriate than others." ...
... It was hypothesised that Russian and Dutch respondents will have significantly different scores for task and relationship orientations and the current study supported these hypotheses as Russian respondents appeared to be more task-oriented and more relationship-oriented than Dutch respondents. This study proves the suggestion by Ghemawat and Reiche (2011, p.3) that "dealing with national cultural differences therefore requires not only knowledge about adequate behaviors but, more importantly, an understanding of deeper-level assumptions and values that explain why certain behaviors are more appropriate than others." ...
... Although the last update of this database was conducted in 2012, it is still considered valuable for research purposes based on its uniqueness and availability. The Freedom House and the CIA Factbook are data sources indicated by several authors as good fit alternatives in the case of analysis (Berry et al., 2010;Ghemawat and Reiche, 2011). In addition, the beef packers plant data received from the Brazilian Ministry of Agriculture, Livestock, and Supply were included. ...
Article
Purpose The research objective is to identify Brazilian and Chinese cultural, managerial and negotiation factors that can influence the beef trade between the two countries. Design/methodology/approach First, a matrix based on reliable secondary sources was established created upon indicators of economic, financial, policy, administrative, cultural, demographic, knowledge, global connectedness, and geographic distance between the two countries. This was combined with primary data from interviews conducted with two key stakeholders of the supply chain, namely the Brazilian agricultural attaché to China, and the director of Apex-Brasil. The results were analysed in a qualitative descriptive manner. Findings Cultural and political distances between Brazil and China are the most profound origins of challenges in negotiations on both the private and public level. Research limitations/implications The interviews were limited in number and to the Brazilian portion of agents involved in the beef trade (Diplomats and APEX representative).The low number of interviews might be a limiting factor of the investigation. However, the interviewees’ key position in the supply chain and data triangulation with secondary sources equilibrates the results’ trustworthiness. Originality/value Information collected and conclusions drawn from the research are unique in scientific and management literature related to this specific topic, and can be of great value for stakeholders, traders, and diplomats in the Sino-Brazilian trade.
... As inferred from the findings of this study and literature (Ghemawat & Reiche, 2011;Hooker, 2008;Ma & Ran, 2011;Matijevic´, Raguˇz, & Filipovic´, 2015;Padhi, 2016), the non-adoption of local cultural values by sellers in a market may lead to various consequences that may harm the business. For instance, insensitivity on the part of sellers to local cultures is likely to undermine the business relationship or social bond between the seller and the customers. ...
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Although African markets have incorporated various selling practices originating from the West, there are still some selling practices that are indigenous to the African people and are widely practised by sellers across the continent. This chapter is an attempt at documenting those indigenous practices with the aim of providing managers, educators and policymakers of the continent with a reference document on what these indigenous selling practices are, how sellers invoke them in the course of transactions and the cultural values that guide these practices. Primary data were gathered from three countries representing western, eastern and southern Africa through observations, field surveys and in-depth and key informant interviews while literature was sourced for secondary data. The chapter identified street selling, haggling and credit-based selling as the major indigenous selling practices found among sellers in Africa. The cultural values that guide selling in the continent include respect, trustworthiness and kindness. The chapter displayed a framework to explain the subject matter and made some practical suggestions that are relevant for managers, educators and policymakers.
... Many organisations today are running their businesses across multi-national borders and in differing crosscultural identities. Underestimating the importance and consideration of local social and cultural values may lead to unexpected hassles, mar interpersonal relationships, and ultimately lower business performance (Ghemawat and Reiche 2011). Evidence in various research also suggests that different countries adopt varied models for their business structure, legislative requirements, employment relationships, HRM competence and decision making to sustain their human assets (Schuler and Rogovsky 1998). ...
... In an organization, larger culture difference will requires stronger controls of manager in the organization, fail of manager to understand the importance of culture will cause problem in the organization. Failure to understand the difference in culture may lead to embarrassing, broken of relationships, and give impact to the business performance in organization (Ghemawat & Reiche, 2011). ...
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This research explores the impact of organizational culture on expatriate’s working performance at Universiti Malaysia Perlis. The factors that affect expatriate’s job performance are important in enabling expatriates to acquire essential competencies that allow them to complete their tasks in workplace. This research was a survey (questionnaires) method. Data were gathered from 150 respondents consist of expatriates who were academicians and non-academician of legal age 18 and above on random basis from several academic schools in UniMAP. The analysis of the study uses Mi-crosoft Excel and Statistical Package for Social Sciences (SPSS) Software Version 16.0. The data were analyzed using descriptive analysis and multiple regression analysis. According to the results presented, language barriers and communication style were found to have significant effects on expatriate’s working performance. Therefore, from the results of two hypotheses tested there are meaningful relationships between language barriers and communication style toward expatriates working performance at Universiti Malaysia Perlis. This research has accumulated an empirical knowledge base which concentrates on coping behaviors for foreign staffs in higher education in-stitution contexts. The findings of this research will help the management of UniMAP understand the impact of organizational culture’s factors on expatriates working performance. The results of the present study showed that it could set up the right organizational culture and ultimately further improve the organization performance.
... They specified seven dimensions: internal direction vs. outer direction, time orientation, achievement vs. ascription, neutralism vs. emotionalism, individualism vs. communitarianism, universalism vs. particularism, specific vs. diffuse (Trompenaars & Hampden-Turner, 1997). According to Ghemawat and Reiche (2011), in the most recent approach to classification of cultures Gelfand and her research team distinguished 33 nations in terms of their tightness. According to authors, tight cultures such as Pakistani, Indian or Korean have many strong norms and a low tolerance for deviant behavior; whereas, loose cultures such as Ukrainian, Hungarian or the Dutch have weak social norms and a high tolerance for deviant behavior. ...
Article
The purpose of this paper is to recognize the correlation among dimensions of national culture and the shadow economy. Shadow economy exists in any country and it is fostering economic development. That is why not only academics but also researchers try to identify the factors affecting the shadow economy level. In literature and research studies relatively insignificant attention is paid to the relation between national culture and shadow economy. In order to identify the relation, the correlation analysis and Hofstede’s categorized national culture dimensions were used. Shadow Economy (as a percentage of the official GDP) was calculated based on the DYMIMIC and the Currency Demand Method. The Pearson’s coefficient index, and t-student test were used, as well. The correlation analysis revealed the correlation between the shadow economy and the following: the dimensions of national cultural power distance, uncertainty avoidance, and individualism vs. collectivism. There is a slight correlation between the shadow economy and masculinity vs. femininity. This is a novel empirical analysis of the shadow economy existing among the dimensions of national culture. Based on the achieved results there is a requirement to shape national culture. Thanks to that the level of shadow economy might be reduced. The unexpected findings of high correlation between some national cultural dimensions suggest the need for more research in this area. © 2018, Kauno Technologijos Universitetas. All rights reserved.
... The analyses established that all three cultural dimensions contribute distinctively to the explanation of important social phenomena and the difference in the culture of nations. Ghemawat and Reiche (2011) define culture as a set of shared values, assumptions and beliefs learnt through membership in a group that influence the attitudes and behaviours of group members. Culture is a group phenomenon that exists at several different levels, namely, organizations, occupational groups, geographical regions and nations, and differentiates people of one group from another. ...
Article
This article compares and contrasts the attitudes of men of Royal Bhutan Army (RBA) and Indian Army (IA) towards the women in their military. Literature review brings forth the various elements, namely, recruitment, training, employment in combat arms and services, and segregation or integration in the existing set-up about which the men express their views. These four elements help us to understand the factors that have an impact on shaping the attitudes of military men towards the employment and inclusion of women in army, which not too long ago had a policy that prohibited women to join.
... where men tend to be more focused on success and competition while women focus more on tender values Ghemawat and Reiche (2011). ...
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This case study is a critical analysis of the failure of Wal-Mart stores in Germany under the context of organizational behavior. For achieving the purpose, relevant theoretical approaches of Organizational Behavior will be engaged and used as an analysis tool for evaluating the real factors of significant failure of Wal-Mart stores in the lively economy of Germany. Lastly, drawing a concrete conclusion highlighting the mainstream failure issues and adaptable improving steps based on the above conducted analysis. Mismanagement of Cultural Diversity and Adaptation of inappropriate leadership style are the factors identified for this gigantic failure. The Organizational Culture model of Pacanowsky and O'Donnell-Trujillo, Lewin Change Management Model and Transformational leadership should be engaged by the Wal-Mart management in Germany to avoid that defeat as it would deeply addresses the issue of managing culture diversity and assisting managers in defining policies to successfully overcome the problems of different national cultures and would assist in leading people to work in teams besides having different cultures.
... For example, the norm in United States (US) concerning the permit to own a gun has caused several controversies in the country because it has led to several actions of mass civilian shoot-outs. So, the pro-gun control activists in US have been largely pushing forward their stance against this norm (Ghemawat and Reiche, 2011). ...
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Prior to the knowledge of psychological contract in the early 90's, the employment relationship was simply based on everyday work relations. Overtime, researchers (Levinson et al., 1962, Schein, 1965 and Rousseau, 1989) were able to identify that there is more to the employment relationship. For example, the unwritten expectations or perceptions employers' and employees usually have. This is also known as, the psychological contract (Flood et al., 2001). So, the researchers began to identify how psychological contracts occur, how it affects both local and international business (Lester et al., 2002) and how the knowledge of psychological contract helps businesses have a better working relationship between employer and employee (Haslberger and Brewster, 2009). Psychological contract is particularly important in international business because of the inability to cover all aspects (such as, unspoken expectations) in the employment agreement (Haslberger and Brewster, 2009). Employees have different cultures that could influence the formation of psychological contracts, perception of fulfilment or violation of contracts (Thomas, Au and Ravlin, 2003). For employees that go on international assignments (also known as expatriate assignments), psychological contract is an important factor because, an employee going to another country is exposed to more challenges (e.g. language barrier and acclimatization) than an employee on home soil. Thus, psychological contract can influence employees' decision to accept or reject an assignment. (Haslberger and Brewster, 2009). 3 ACKNOWLEDGEMENT
... When examining the role of cultural distance, the hypothesis is that, as the cultural difference between a firm's home country and a host market increase, the underlying ability of the firm to operate effectively in the host market decreases. Countries where entry would entail the least information costs are those most likely to be chosen as host countries (Ghemawat and Reiche, 2011). Information costs are most usually proxied by geographic and cultural distance. ...
... When examining the role of cultural distance, the hypothesis is that, as the cultural difference between a firm's home country and a host market increase, the underlying ability of the firm to operate effectively in the host market decreases. Countries where entry would entail the least information costs are those most likely to be chosen as host countries (Ghemawat and Reiche, 2011). Information costs are most usually proxied by geographic and cultural distance. ...
... Therefore, it is critical for this study to integrate business cultural differences, etiquette and acquisition of social media because according to Martin and Chaney (2012), this is necessary especially to employees who work globally to be thoroughly trained in comparative management styles, business protocol, etiquette and ethics. Ghemawat and Reiche (2011) point out that objective indicators of cultural differences abound at the behavioural level and become progressively more elusive as one moves through the levels of expressed values toward basic assumptions. King (2009) suggests that successful international social media occurs when organizations orchestrate their intended strategy, which includes strong cross-cultural skills as well as local professionals. ...
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Social media have exacerbated negative impact across all facets of commercial banks. The evolution and ubiquity of social media has permeated the unprecedented pressure which is unavoidable in two identified commercial banks located in the Eastern Cape (OR Tambo District, Mthatha) namely: ABSA and Standard Bank in this decade of information technology. Thus, social media have imposed negative impressions on employees’ understanding, thereby resulting in the negative perceptions of employees regarding its benefits and influence which drastically amounted to change of employee interactions and communication. The primary objectives of the study are to investigate the impact made by social media on teams in the banking sector and to ascertain the types of teams who are utilizing social media tools. A quantitative research method was employed whereby 194 questionnaires were distributed and 102 completed, thereby generating a response rate of 53%. The data were analysed using SPSS version 23.0. The results present the descriptive statistics in the form of graphs, cross-tabulations and other figures for the quantitative data that was collected. Inferential techniques included the use of correlations and chi square test values which were interpreted using p-values. This study findings revealed a significant relationship between biographical variables (age, gender, race, level of education, work experience, job category, job type, job level and employer) and five dimensions (understanding of social media, social media optimism, social media influence on human interactions, challenges of social media in banks and perceptions in business etiquette). The study’s findings revealed a positive and significant relationship between social networking as a great contributor to business productivity and that social media, as a medium, enhances communication effectiveness at 0.448** . However, social media optimism was found to be negative due to lack of trust. The challenges of social media have come with embedded risks of fraud, hacking of information and so forth. These impacts were identified as risks which could violate policies and procedures of financial institutions. This study concludes and recommends that branch managers from commercial banks (ABSA and Standard Bank) should formulate and develop policies to guide employees on the use of social media; this is to intensify intervention in the event of inevitable excessive loss in the financial strength of these commercial banks.
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This paper explores hypotheses based on Hofstede's cultural framework showing that decision-makers' culture impacts their implicit choice. How people make decisions is tested through the behavioral dimension preference for intuition/preference for deliberation based on data from 1,233 employees in China, Taiwan, the Philippines, and the USA. The survey design was confirmed applying explanatory (EFA) and confirmatory (CFA) factor analyses. This study reveals that there is significant variation in individuals' intuitive and affective decision-making in the public sector across different countries. Individuals' deliberative decision-making is revealed to be impacted by cultural dimensions like long-term orientation and uncertainty avoidance. The study finds that Eastern countries with Guanxi (China, the Philippines, and Taiwan) have higher scores for intuitive/affective decision making than the Western countries (the USA).
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This research delves into the intricate dynamics of organizational cultures, specifically focusing on the dimensions of adaptability and consistency. Through a comprehensive study involving 2 multinational and 2 national companies, the research analyzes key components such as creative change, customer focus, core values, agreement, and coordination and integration. The findings reveal that multinational companies exhibit significantly higher adaptability, driven particularly by strong scores in creative change and organizational learning. Although no significant disparities were identified in overall consistency scores, multinational organizations consistently demonstrated higher scores across core values, agreement, and coordination and integration. The study emphasizes the interdependence of adaptability and consistency traits, providing actionable insights for leaders aiming to foster resilient and effective organizational cultures. While the research has certain limitations, such as a reliance on self-reported data and a cross-sectional design, it lays a foundation for future explorations into the nuanced dimensions of organizational dynamics across diverse global contexts.
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In many developing countries export earnings account for a large percentage of the country Gross Domestic Product (GDP), government revenues and expenditures and public investment. High dependency on a limited number of commodities for export increases the economy vulnerability to price fluctuations in the global markets. Not only instability in export earnings reduces the ability of the economy to finance development, but also increases uncertainty about future growth. Economic diversification underscores the importance of productivity growth to balance development and reduce dependency on international markets. The new economy, driven by digital technologies could help developing countries diversify output and foster economic growth. Building capacity for digital development enhances the country capabilities to promote innovation, create knowledge and disseminate information. Digital networks increase communication as well as allow people, regions and nations to collaborate and share information aiming at fostering growth and sustaining development. For developing countries, external knowledge enhances the economy readiness to diversify output, create employment opportunities and improve global competitiveness.
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https://deepblue.lib.umich.edu/bitstream/2027.42/147389/1/mirarh.pdf
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Globalization is growing and barriers seem to be dwindling. Therefore, trade barriers are eliminated, communication channels are simplifying business processes and the world appears to be shrinking to a village (Werlen, 2000, p. 23). The internalization of firms is a strategically planned result that has been motivated by major considerations, and one main factor for decision-making is the conception of psychic distance. Psychic distance is based on the cognitions of other cultures and influences the internationalization processes. Dow (2008, p. 1) revealed six main influencing factors: cultural differences, language, religion, level of education, industrial development and political system. Culture is a ambiguous construct and understanding how culture relates to psychological phenomena is essential to analyse the determining dimensions such as the individualism and collectivism dimension. There exists a broad vision of cultural dimensions and a controversial discussion is ongoing. The focus of these discussions is the differentiation between cultural values.
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The main focus of the paper is the concept of culture and cultural capital in the economic theory. The concept of culture is analyzed through the points of criticism of social capital by R.Solow. The paper suggests a refined definition of culture and cultural capital. Several ways of productive use of cultural capital are described. Among them: through reduction of uncertainty and transaction costs, through use of competitive advantages, based on culture and harmonization of formal and informal rules. The effect of cultural capital on bilateral trade through reduction in uncertainty and transaction costs is tested in the empirical part of the paper. A suggested approach to cultural capital, based on transaction costs theory can be useful for institutional design, and policy-advice, aiming at the increase in competitiveness of society and the efficiency of formal institutions.
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There is a certain correlation between the dimensions of culture identified by Hofstede and the size of the shadow economy. In the case of three indicators (i.e. the size of the shadow economy versus the distance from the authority, individualism and aversion to uncertainty) the observed correlations were moderate (0.52, -0.55, 0.52, respectively). On the other hand, the correlations were low between the size of the shadow economy and masculinity (0.11) and long-term orientation (0.11) Buszko arrived at similar research results. What transpires from his analysis is that the highest positive correlation (0.57) was between the aversion to uncertainty and the shadow economy. A moderate positive correlation (0.47) was noted between the distance from the authorities and the shadow economy. A weak negative correlation (-0.37) was observed between individualism and the shadow economy. No correlation was found between the cultural gender and the shadow economy. It is worth mentioning that only one simple indicator (Pearson correlation coefficient) was used and the research can only serve as a basis for further research on the relationship between the shadow economy and the dimensions of culture proposed by Hofstede.
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Communication effectiveness has been one of important factors in daily life covering workplaces, relationships, and all sorts of human interaction. As a workplace or even learning centres, any organisation shall need to practise good and effective communication, from within and outside organisation, to achieve its goals. Many researchers have developed and shared various theories, models and frameworks with regards to this topic of interest due to its cruciality to be achieved and practised. However, communication is a very broad subject and is affected by many internal and external factors. The internal and external factors may both refer to communication barriers, which could be a stimulus, a situation or even an object that may hinder or prohibit any part of a communication process making it harder for messages to be encoded and decoded precisely by parties involved. The purpose of this research is to investigate the factors influencing effective communication in an organisation. This research is a qualitative research that used questionnaires as the instrument for collection of data. The data was collected and viable at 77% out of 69 respondents which was derived from the total population of 90 elements. Sample selection was based on a non-probability approach. The data collected was then evaluated by using Statistical Package for the Social Science (SPSS) through which numerous tests were converged such as reliability test, normality test, frequency distribution, descriptive analysis and multiple regression analysis. The results indicated that organisational environment affects effective communication more than language and culture do. Keywords: Effective Communication, Organisation, Cultural Studies
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This chapter aims to explain how the differences in national cultures have an impact on understanding the concept of leadership and leadership styles in an intercultural perspective. Leaders need to recognize the culture of their community and be aware of cultural differences. These cultural characteristics affect the behavior and attitudes of the leaders. Leaders need to understand the effects and possible consequences of these cultural differences at the organizational and managerial levels for effective management and organizational success. In this respect, the concept of leadership and the process of development of leadership are examined in a literature review. Following the analysis of leadership theories and leadership styles, the cultural dimensions of Hofstede are examined in the section of cultural differentiation and dimensions. Finally, national culture dimensions in cross-cultural leadership were examined.
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Has the Internet impacted the core values of consumers, particularly in developing nations? Unlike one-way mass media vehicles such as television, the internet's two-way, interactive nature allows individuals to communicate in a high-involvement, border-free world via social media, blogs, online forums, and the like. This will result in the trading of values and ideas, and especially in the erosion of traditional value systems in developing nations. This chapter highlights the changes in values in India between 2004 and 2014, with a marked increase in Western individualistic values such as power and achievement, eroding traditional collective values such as universalism among Indian youth during this period. Since consumers buy products that reflect their values, these findings have profound implications for business management and marketing. Further, the general notion that the core values of a society are slow to change is refuted.
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The purpose of the study is to examine empirically the relationship between national competitiveness and national culture. The study applied exploratory research design with national culture and national competitiveness treated as two independent variables. Hofstede’s national culture categorization namely masculinity, individualism, uncertainty avoidance, power distance, and long-term orientation was adopted. Cultural Index by GLOBE study and Global Competitiveness Index (GCI) by the World Economic Forum were used for the measurement. Descriptive statistic along with bivariate correlation analysis was used in this study. A number of samples involved in this study was 58 countries. The study concludes that national competitiveness is positively and significantly associated with national culture namely long-term orientation, uncertainty avoidance, and individualism. National competitiveness has a negative association with power distance national culture. However, national competitiveness was indicated no association with masculine national culture. The findings conclude that in general, national culture is a factor that explains why there are differences in national competitiveness among countries around the world. A suggestion for future similar research is that control variable such national income as well as the application of more sophisticated statistical analysis method should be included. Keywords: exploratory study, global competitiveness index, national culture; national competitiveness; national culture index
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Geert Hofstede’s legendary national culture research is critiqued. Crucial assumptions which underlie his claim to have uncovered the secrets of entire national cultures are described and challenged. The plausibility of systematically causal national cultures is questioned.
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This paper studies the intangible costs of international trade by extending the basic gravity equation with measures of cultural and institutional distance, and institutional quality. Analyzing a sample of bilateral trade flows between 92 countries in 1999, we find that institutional distance has a negative effect on bilateral trade, presumably because the transaction costs of trade between partners from dissimilar institutional settings are high. In contrast, we find that cultural distance has a positive effect on bilateral trade. A potential explanation for this finding is that firms prefer trade to host-country production in culturally distant countries. Finally, we find that the institutional quality of both the importer and exporter increases the amount of bilateral trade.
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This paper addresses the pattern of knowledge flows as indicated by patent citations between European regions. Our findings support the hypothesis that there are important barriers to knowledge flows in Europe. Patent citations occur more often between regions which belong to the same country and which are in geographical proximity. Furthermore, patent citations are industry specific and occur most often between regions that are specialised in industrial sectors with specific technological linkages between them. Patent citations are also more frequent when the citing region belongs to the same linguistic group as the cited region. JEL classification: O30; O33; R19
Shalom Schwartz found similar levels of stability over time in his own research; see Shalom H. Schwartz, Cultural Value Orientations: Nature & Implications of National Differences
  • Ronald Inglehart
  • Wayne E Baker
Ronald Inglehart and Wayne E. Baker, "Modernization, Cultural Change, and the Persistence of Traditional Values," American Sociological Review, Volume 65, No. 1, 2000, pp. 19-51. Shalom Schwartz found similar levels of stability over time in his own research; see Shalom H. Schwartz, Cultural Value Orientations: Nature & Implications of National Differences, 2008, Moscow: Publ. House of SU HSE.
International Dimensions of Organizational Behavior, Fifth Edition, South-Western CENAGE Learning
  • Hampden-Turner Tompenaars
This is based on research conducted by Tompenaars and Hampden-Turner, as described in Nancy J. Adler and Allison Gundersen, International Dimensions of Organizational Behavior, Fifth Edition, South-Western CENAGE Learning, 2008, pp. 60-61.
Some material is quoted directly while other material is paraphrased
  • B Of John
  • K Praveen Cullen
  • Parboteeah
This paragraph is drawn from the Powerpoint slides that accompany Chapter 2 of John B. Cullen and K. Praveen Parboteeah, Multinational Management: A Strategic Approach¸ Third Edition, South-Western College Publishing, 2005. Some material is quoted directly while other material is paraphrased (not marked to improve readability).
Differences in business ownership and governance around the world. Globalization Note Series
  • Pankaj Ghemawat
  • Thomas M Hout
Pankaj Ghemawat and Thomas M. Hout. Differences in business ownership and governance around the world. Globalization Note Series, 2011.
The Cultural Context of Accounting
  • Geert Hofstede
Geert Hofstede, "The Cultural Context of Accounting," in Accounting and Culture: Plenary Session Papers and Discussants' Comments from the 1986 Annual Meeting of the American Accounting Association.
Gravity as a cultural arteface: Culture and distance in foreign portfolio investment
  • Raj Aggarwal
  • Colm Kearney
  • Brian Lucey
Raj Aggarwal, Colm Kearney, and Brian Lucey, "Gravity as a cultural arteface: Culture and distance in foreign portfolio investment," Manuscript FMA Annual Meeting, January 2009.
The Role of Culture in Entry-Mode Studies: From Neglect to Myopia?
  • Oded Shenkar
Oded Shenkar, "Cultural Distance Revisited: Towards a More Rigorous Conceptualization and Measurement of Cultural Differences," Journal of International Business Studies, Volume 32, No. 3, 2001, pp. 519-535. See also Anne-Wil Harzing, "The Role of Culture in Entry-Mode Studies: From Neglect to Myopia?" In Joseph L.C. Cheng and Michael A. Hitt (Eds.), Advances in International Management, Volume 15, 2004, pp. 75-127, Oxford: Elsevier JAI.
  • B L Whorf
Whorf, B.L., Science and Linguistics, Technology Review, 42, 6, 1940, pp. 229-248.
Introduction: Linguistic Relativity Re-examined
  • J John
  • Gumperz
  • Stephen C Levinson
John J. Gumperz and Stephen C Levinson, "Introduction: Linguistic Relativity Re-examined," in Rethinking Linguistic Relativity, John J. Gumperz and Stephen C. Levinson, editors, Cambridge University Press, 1996, pp. 2-3.
The Globalization of Markets, Globalization Note Series
  • Pankaj Ghemawat
Pankaj Ghemawat, The Globalization of Markets, Globalization Note Series, 2010.
The Industry-Level Structure of International Trade Networks: A Gravity-Based Approach
  • Pankaj Ghemawat
  • Rajiv Mallick
Pankaj Ghemawat and Rajiv Mallick, "The Industry-Level Structure of International Trade Networks: A Gravity-Based Approach," working paper, Harvard Business School, Boston, February 2003.
  • Fukunari Kimura
  • Hyun-Hoon Lee
Fukunari Kimura and Hyun-Hoon Lee, "The Gravity Equaty in International Trade in Services," paper for the European Trade Study Group Conference, University of Nottingham, Sept 9-11, 2004.
University of Strathclyde, CREST-INSEE, and CEPR, Working Paper
  • Jaques Melitz
Jaques Melitz, "Language and Foreign Trade," University of Strathclyde, CREST-INSEE, and CEPR, Working Paper, July 2006.
  • Joshua J Lewer
  • Hendrik Van Den
  • Berg
Joshua J. Lewer and Hendrik Van den Berg," American Journal of Economics and Sociology, "Vol 66 (2007), No. 4 (October), pp. 765-794.
Overcoming Barriers: Human Mobility and Development
United Nations Development Programme, Human Development Report 2009, Overcoming Barriers: Human Mobility and Development
An academic article based on this survey summarizes data about the percentage of citizens of each West European country surveyed who report trusting others "a lot" See Luigi Guiso, Paola Sapienza, and Luigi Zingales
Survey respondents were actually asked to rate the citizens of other countries as well as their own on a spectrum ranging from "no trust at all" to "a lot of trust." An academic article based on this survey summarizes data about the percentage of citizens of each West European country surveyed who report trusting others "a lot" See Luigi Guiso, Paola Sapienza, and Luigi Zingales, "Cultural Biases in Economic Exchange?" Quarterly Journal of Economics 124, no. 3 (August 2009): 1095-1131.
International Dimensions of Organizational Behavior, Fifth Edition, South-Western CENAGE Learning
  • Nancy J Adler
  • Allison Gundersen
Nancy J. Adler and Allison Gundersen, International Dimensions of Organizational Behavior, Fifth Edition, South-Western CENAGE Learning, 2008.
Grooming CEO Talent at the Truly Global Firm of the Future
  • Herman Vantrappen
  • Petter Kilefors
Herman Vantrappen and Petter Kilefors, "Grooming CEO Talent at the Truly Global Firm of the Future," Arthur D. Little Prism, February 2009, 90-105.