Hofstede's cultural dimensions theory
Encyclopedia
Geert Hofstede
proposed a systematic framework for assessing and differentiating national cultures
best known as the cultural dimensions theory. He gathered and analyzed extensive data on the world's value
s and cultures, particularly through the IBM
survey study, in order to build a comprehensive model which argues that people differ across on the extent to which they endorse six dimensions of values – power (equality versus inequality), collectivism (versus individualism), uncertainty avoidance (versus tolerance), masculinity (versus femininity), temporal orientation, and indulgence (versus restraint).
Europe (which he managed until 1971).
Between 1967 and 1973, he executed a large survey study
regarding national values differences across the worldwide subsidiaries of this multinational corporation: he compared the answers of 117,000 IBM matched employees samples on the same attitude survey in different countries
. He first focused his research on the 40 largest countries, and then extended it to 50 countries and 3 regions, “at that time probably the largest matched-sample cross-national database available anywhere.”.
This initial analysis identified systematic differences in national cultures on four primary dimensions: power distance
(PDI), individualism
(IDV), uncertainty
avoidance (UAI) and masculinity (MAS), which are described below. As Hofstede explains on his academic website, these dimensions regard “four anthropological problem areas
that different national societies handle differently: ways of coping with inequality
, ways of coping with uncertainty
, the relationship
of the individual with her or his primary group, and the emotional implications of having been born as a girl or as a boy ”. In 1980 he published Culture's Consequences, a book which combines the statistical analysis from the survey research with his personal experiences.
In order to confirm the early results from the IBM study and to extend them to a variety of populations, six subsequent cross-national studie
s have successfully been conducted between 1990 and 2002. Covering between 14 to 28 countries, the samples included commercial airline pilots, students, civil service managers, 'up-market' consumers and 'elites'. The combined research established value scores on the four dimensions for a total of 76 countries and regions.
In 1991, Michael Harris Bond and colleagues conducted a study among students in 23 countries, using a survey instrument developed with Chinese employees and managers. The results from this study led Hofstede to add a new fifth dimension to his model: long term orientation (LTO) initially called Confucian dynamism. In 2010, the scores for this dimension have been extended to 93 countries thanks to the research of Micheal Minkov who used the recent World Values Survey
.
Finally, Minkov’s World Values Survey data analysis of 93 representative samples of national populations also led Geert Hofstede to identify a sixth last dimension: indulgence versus restraint
.
:
s, in other words everything which is implied by the definition of one nation’s culture.
For example, low power distance is associated with consultative political practices and income equity, whereas high power distance is correlated with the use of bribery and corruption in domestic politics and the unequal distribution of income. Individualism is positively correlated with mobility
between social classes and with national wealth. In fact, when a country gets richer it has been observed that people get more individualistic.
Another example of correlation has been drawn by the Sigma Two Group in 2003. They have studied the correlation between countries cultural dimensions and their predominate religion, based on the World Factbook 2002. On average, predominantly Catholic countries show very high uncertainty avoidance, relatively high power distance, moderate masculinity and relatively low individualism, whereas predominantly atheist countries tend to be collectivistic, with low uncertainty avoidance, moderate masculinity score and very high power distance.
Despite the evidence that groups are different from each other, we tend to believe that deep inside all people are the same. In fact, as we are generally not aware of other countries’ cultures, we tend to minimize cultural differences. This leads to misunderstanding
s and misinterpretations between people from different countries.
Instead of the convergence phenomena we expected with information technologies availability (the “global village
culture”), cultural differences are still significant today and diversity tends to increase. So, in order to be able to have cross-cultural relations, we have to be aware of these cultural differences.
With his five dimensions model, Geert Hofstede shed light on these differences. Therefore, it is a great tool to use in order to have a general overview and an approximate understanding of other cultures and, to know how to behave towards individuals from other countries. Because, we still need to cooperate with members of other cultures, and maybe more than ever with the new problems which have arisen for several decades like environmental issue
s. Therefore cross-cultural understanding is indispensable.
and anthropologist in the context of applications for understanding international business
. Many articles and research papers refer to his publications, with over 20,000 citations to his 2003 book Culture's Consequences: Comparing Values, Behaviors, Institutions and Organizations Across Nations (which is an updated version of his first publication). The five dimensions model is widely used in many domains of human social life
, and particularly in the field of business. Practical applications were developed almost immediately. In fact, when it comes to business, promoting cultural sensitivity will help people work more effectively when interacting with people from other countries, and will participate to make transactions are successful.
In business, it is commonly agreed that communication is one of the primary concerns. So, for professionals who work internationally; people who interact daily with other people from different countries within their company or with other companies abroad; Hofstede’s model gives insights into other cultures. In fact, cross-cultural communication
requires being aware of cultural differences because what may be considered perfectly acceptable and natural in one country, can be confusing or even offensive in another. All the levels in communication are affected by cultural dimensions: verbals (words and language itself), non verbals
(body language, gestures) and etiquette
do’s and don’ts (clothing, gift-giving, dining, customs and protocol). And this is also valid for written communication as explained in William Wardrobe’s essay "Beyond Hofstede: Cultural applications for communication with Latin American Businesses".
In international negotiation
s, communication style, expectation, issue ranking and goals will change according to the negotiators’ countries of origin. If applied properly, the understanding of cultural dimensions should increase success in negotiations and reduce frustration
and conflicts.
For example, in a negotiation between Chinese and Canadian, Canadian negotiators may want to reach an agreement and sign a contract, whereas Chinese negotiators may want to spend more time for non business activities, small talk
s and hospitality
with preferences for protocol
and form in order to first establish the relationship.
These considerations are also true in international management and cross-cultural leadership
. Decisions taken have to be based on the country’s customs and values.
When working in international companies, managers may provide training to their employees in ordrer to make them sensitive to cultural differences, develop nuanced business practices, with protocols across countries. Hofstede's dimensions offer guidelines for defining culturally acceptable approaches to corporate organizations.
As a part of the public domain, Geert Hofstede’s work is used by numerous consultancies
worldwide. But only 3 of them are regarded as partners and have Hofstede’s a full support with regular contacts.
As in communication, negotiation and management, the five dimensions model is very useful in international marketing
too because it defines national values not only in business context but in general. Marieke de Mooij has studied the application of Hofstede’s findings in the field of global branding, advertising strategy
and consumer behavior. As companies try to adapt their products and services to local habits and preferences they have to understand the specificity of their market.
For example, if you want to market cars in a country where the uncertainty avoidance is high, you should emphasize on their safety, whereas in other countries you may base your advertisement on the social image they give you.
Cell phone marketing is another interesting example of the application of Hofstede’s model for cultural differences: if you want to advertise cell phones in China, you may show a collective experience whereas in the United States you may show how an individual uses it to save time and money.
The variety of application of Hofstede’s abstract theory is so wide that it has even been translated in the field of web design
ing in which you have to adapt to national preferences according to cultures’ values.
's flagship journal, The Academy of Management Review, Galit Ailon deconstructs Hofstede's book Culture's Consequences by mirroring it against its own assumptions and logic. Ailon finds inconsistencies at the level of both theory and methodology and cautions against an uncritical reading of Hofstede's cultural dimensions. Literature in subjects actually studying culture, such as anthropology or social psychology, don't even mention the existence of Hofstede's model.
s. They are tools meant to be used in practical applications. Generalizations about one country’s culture are helpful but they have to be regarded as such, i.e. as guidelines for a better understanding. They are group-level dimensions which describe national averages which apply to the population in its entirely. Hofstede's cultural dimensions enable users to distinguish countries but are not about differences between members of societies. They don’t necessarily define individuals’ personalities
. National scores should never be interpreted as deterministic for individuals. For example, a Japanese person can have very comfortable in changing situation whereas on average, Japanese people have high uncertainty avoidance. There are still exceptions to the rule.
Hofstede’s theory can be contrasted with its equivalence at individual level: the trait theory
about human personality.
From 1985 to 1987, Geert’s institute IRIC (Institute for Research on Intercultural Cooperation) has conducted a separate research project in order to study organizational culture. Including 20 organizational units in two countries (Denmark
and the Netherlands
), six different dimensions of practices, or communities of practice
have been identified:
Managing international organizations involves understanding both national and organizational cultures. Communities of practice across borders are significant for multinationals in order to hold the company together.
s they are part of. The culture of management as an occupation has components from national and organizational cultures. This is an important distinction from the organizational level.
in a country depends primarily on the culture within that nation and its history.
Geert Hofstede
Geert Hofstede, born as Gerard Hendrik Hofstede is an influential Dutch social psychologist and anthropologist. He is a well-known pioneer in his research of cross-cultural groups and organizations. He has played a major role in developing a systematic framework for assessing and differentiating...
proposed a systematic framework for assessing and differentiating national cultures
Nationality
Nationality is membership of a nation or sovereign state, usually determined by their citizenship, but sometimes by ethnicity or place of residence, or based on their sense of national identity....
best known as the cultural dimensions theory. He gathered and analyzed extensive data on the world's value
Value (ethics)
In ethics, value is a property of objects, including physical objects as well as abstract objects , representing their degree of importance....
s and cultures, particularly through the IBM
IBM
International Business Machines Corporation or IBM is an American multinational technology and consulting corporation headquartered in Armonk, New York, United States. IBM manufactures and sells computer hardware and software, and it offers infrastructure, hosting and consulting services in areas...
survey study, in order to build a comprehensive model which argues that people differ across on the extent to which they endorse six dimensions of values – power (equality versus inequality), collectivism (versus individualism), uncertainty avoidance (versus tolerance), masculinity (versus femininity), temporal orientation, and indulgence (versus restraint).
Research history and methodology
In 1965, Geert Hofstede founded the personnel research department of IBMIBM
International Business Machines Corporation or IBM is an American multinational technology and consulting corporation headquartered in Armonk, New York, United States. IBM manufactures and sells computer hardware and software, and it offers infrastructure, hosting and consulting services in areas...
Europe (which he managed until 1971).
Between 1967 and 1973, he executed a large survey study
Survey research
Survey research a research method involving the use of questionnaires and/or statistical surveys to gather data about people and their thoughts and behaviours. This method was pioneered in the 1930s and 1940s by sociologist Paul Lazarsfeld. The initial use of the method was to examine the effects...
regarding national values differences across the worldwide subsidiaries of this multinational corporation: he compared the answers of 117,000 IBM matched employees samples on the same attitude survey in different countries
Country
A country is a region legally identified as a distinct entity in political geography. A country may be an independent sovereign state or one that is occupied by another state, as a non-sovereign or formerly sovereign political division, or a geographic region associated with a previously...
. He first focused his research on the 40 largest countries, and then extended it to 50 countries and 3 regions, “at that time probably the largest matched-sample cross-national database available anywhere.”.
This initial analysis identified systematic differences in national cultures on four primary dimensions: power distance
Social distance
Social distance describes the distance between different groups of society and is opposed to locational distance. The notion includes all differences such as social class, race/ethnicity or sexuality, but also the fact that the different groups do not mix...
(PDI), individualism
Individualism
Individualism is the moral stance, political philosophy, ideology, or social outlook that stresses "the moral worth of the individual". Individualists promote the exercise of one's goals and desires and so value independence and self-reliance while opposing most external interference upon one's own...
(IDV), uncertainty
Uncertainty
Uncertainty is a term used in subtly different ways in a number of fields, including physics, philosophy, statistics, economics, finance, insurance, psychology, sociology, engineering, and information science...
avoidance (UAI) and masculinity (MAS), which are described below. As Hofstede explains on his academic website, these dimensions regard “four anthropological problem areas
Anthropological theories of value
Anthropological theories of value attempt to expand on the traditional theories of value used by economists or ethicists. They are often broader in scope than the theories of value of Adam Smith, David Ricardo, John Stuart Mill, Karl Marx, etc. usually including sociological, political,...
that different national societies handle differently: ways of coping with inequality
Social inequality
Social inequality refers to a situation in which individual groups in a society do not have equal social status. Areas of potential social inequality include voting rights, freedom of speech and assembly, the extent of property rights and access to education, health care, quality housing and other...
, ways of coping with uncertainty
Uncertainty
Uncertainty is a term used in subtly different ways in a number of fields, including physics, philosophy, statistics, economics, finance, insurance, psychology, sociology, engineering, and information science...
, the relationship
Interpersonal relationship
An interpersonal relationship is an association between two or more people that may range from fleeting to enduring. This association may be based on limerence, love, solidarity, regular business interactions, or some other type of social commitment. Interpersonal relationships are formed in the...
of the individual with her or his primary group, and the emotional implications of having been born as a girl or as a boy ”. In 1980 he published Culture's Consequences, a book which combines the statistical analysis from the survey research with his personal experiences.
In order to confirm the early results from the IBM study and to extend them to a variety of populations, six subsequent cross-national studie
Cross-national research
In social science disciplines such as sociology, political science, geography, and economics, cross-national research is the technique of analyzing an event or process that takes place within a country, while comparing the way that event or process takes place across many different countries...
s have successfully been conducted between 1990 and 2002. Covering between 14 to 28 countries, the samples included commercial airline pilots, students, civil service managers, 'up-market' consumers and 'elites'. The combined research established value scores on the four dimensions for a total of 76 countries and regions.
In 1991, Michael Harris Bond and colleagues conducted a study among students in 23 countries, using a survey instrument developed with Chinese employees and managers. The results from this study led Hofstede to add a new fifth dimension to his model: long term orientation (LTO) initially called Confucian dynamism. In 2010, the scores for this dimension have been extended to 93 countries thanks to the research of Micheal Minkov who used the recent World Values Survey
World Values Survey
The World Values Survey is a global research project that explores people’s values and beliefs, how they change over time and what social and political impact they have. It is carried out by a worldwide network of social scientists who, since 1981, have conducted representative national surveys in...
.
Finally, Minkov’s World Values Survey data analysis of 93 representative samples of national populations also led Geert Hofstede to identify a sixth last dimension: indulgence versus restraint
Self control
Self control is the ability to control one's emotions, behavior and desires in order to obtain some reward later. In psychology it is sometimes called self-regulation...
.
Dimensions of national cultures
- Power distance index (PDI): “Power distance is the extent to which the less powerful members of organizations and institutions (like the family) accept and expect that power is distributed unequally.” Cultures that endorse low power distance expect and accept power relations that are more consultative or democratic. People relate to one another more as equals regardless of formal positions. Subordinates are more comfortable with and demand the right to contribute to and critique the decision makingDecision makingDecision making can be regarded as the mental processes resulting in the selection of a course of action among several alternative scenarios. Every decision making process produces a final choice. The output can be an action or an opinion of choice.- Overview :Human performance in decision terms...
of those in power. In high power distance countries, less powerful accept power relations that are more autocraticAutocracyAn autocracy is a form of government in which one person is the supreme power within the state. It is derived from the Greek : and , and may be translated as "one who rules by himself". It is distinct from oligarchy and democracy...
and paternalisticPaternalismPaternalism refers to attitudes or states of affairs that exemplify a traditional relationship between father and child. Two conditions of paternalism are usually identified: interference with liberty and a beneficent intention towards those whose liberty is interfered with...
. Subordinates acknowledge the power of others simply based on where they are situated in certain formal, hierarchical positionsHierarchyA hierarchy is an arrangement of items in which the items are represented as being "above," "below," or "at the same level as" one another...
. As such, the power distance index Hofstede defines does not reflect an objective difference in power distribution, but rather the way people perceive power differences.
- IndividualismIndividualismIndividualism is the moral stance, political philosophy, ideology, or social outlook that stresses "the moral worth of the individual". Individualists promote the exercise of one's goals and desires and so value independence and self-reliance while opposing most external interference upon one's own...
(IDV) vs. collectivismCollectivismCollectivism is any philosophic, political, economic, mystical or social outlook that emphasizes the interdependence of every human in some collective group and the priority of group goals over individual goals. Collectivists usually focus on community, society, or nation...
: “The degree to which individuals are integrated into groups”. In individualistic societies, the stress is put on personal achievements and individual rights. People are expected to stand up for themselves and their immediate family, and to choose their own affiliations. In contrast, in collectivist societies, individuals act predominantly as members of a life-long and cohesive group or organization (note: “The word collectivism in this sense has no political meaning: it refers to the group, not to the state”). People have large extended familiesExtended familyThe term extended family has several distinct meanings. In modern Western cultures dominated by nuclear family constructs, it has come to be used generically to refer to grandparents, uncles, aunts, and cousins, whether they live together within the same household or not. However, it may also refer...
, which are used as a protection in exchange for unquestioning loyaltyLoyaltyLoyalty is faithfulness or a devotion to a person, country, group, or cause There are many aspects to...
.
- UncertaintyUncertaintyUncertainty is a term used in subtly different ways in a number of fields, including physics, philosophy, statistics, economics, finance, insurance, psychology, sociology, engineering, and information science...
avoidance index (UAI): “a society's tolerance for uncertainty and ambiguity”. It reflects the extent to which members of a society attempt to cope with anxietyAnxietyAnxiety is a psychological and physiological state characterized by somatic, emotional, cognitive, and behavioral components. The root meaning of the word anxiety is 'to vex or trouble'; in either presence or absence of psychological stress, anxiety can create feelings of fear, worry, uneasiness,...
by minimizing uncertainty. People in cultures with high uncertainty avoidance tend to be more emotional. They try to minimize the occurrence of unknown and unusual circumstances and to proceed with careful changesSocial changeSocial change refers to an alteration in the social order of a society. It may refer to the notion of social progress or sociocultural evolution, the philosophical idea that society moves forward by dialectical or evolutionary means. It may refer to a paradigmatic change in the socio-economic...
step by step by planning and by implementing rulesNorm (sociology)Social norms are the accepted behaviors within a society or group. This sociological and social psychological term has been defined as "the rules that a group uses for appropriate and inappropriate values, beliefs, attitudes and behaviors. These rules may be explicit or implicit...
, laws and regulations. In contrast, low uncertainty avoidance cultures accept and feel comfortable in unstructured situations or changeable environments and try to have as few rules as possible. People in these cultures tend to be more pragmaticPragmatismPragmatism is a philosophical tradition centered on the linking of practice and theory. It describes a process where theory is extracted from practice, and applied back to practice to form what is called intelligent practice...
, they are more tolerant of change.
- Masculinity (MAS), vs. femininity: “The distribution of emotional roles between the genders”. Masculine cultures’ values are competitivenessCompetitivenessCompetitiveness is a comparative concept of the ability and performance of a firm, sub-sector or country to sell and supply goods and/or services in a given market...
, assertivenessAssertivenessAssertiveness is a particular mode of communication. Dorland's Medical Dictionary defines assertiveness as:During the second half of the 20th century, assertiveness was increasingly singled out as a behavioral skill taught by many personal development experts, behavior therapists, and cognitive...
, materialismMaterialismIn philosophy, the theory of materialism holds that the only thing that exists is matter; that all things are composed of material and all phenomena are the result of material interactions. In other words, matter is the only substance...
, ambitionAmbitionAmbition is the desire for personal achievement. It provides the motivation and determination necessary to achieve a particular end or condition. Ambitious people are characterised by their strong desire for attainment, power, or superiority...
and power, whereas feminine cultures place more value on relationshipsInterpersonal relationshipAn interpersonal relationship is an association between two or more people that may range from fleeting to enduring. This association may be based on limerence, love, solidarity, regular business interactions, or some other type of social commitment. Interpersonal relationships are formed in the...
and quality of lifeQuality of lifeThe term quality of life is used to evaluate the general well-being of individuals and societies. The term is used in a wide range of contexts, including the fields of international development, healthcare, and politics. Quality of life should not be confused with the concept of standard of...
. In masculine cultures, the differences between gender roles are more dramatic and less fluid than in feminine cultures where men and women have the same values emphasizing modesty and caring. As a result of the taboo on sexuality in many cultures, particularly masculine ones, and because of the obvious gender generalizations implied by Hofstede's terminology, this dimension is often renamed by users of Hofstede's work, e.g. to Quantity of Life vs. Quality of Life.
- Long term orientation (LTO), vs. short term orientation: First called “Confucian dynamism”, it describes societies’ time horizonTime horizonA time horizon, also known as a planning horizon, is a fixed point of time in the future at which point certain processes will be evaluated or assumed to end. It is necessary in an accounting, finance or risk management regime to assign such a fixed horizon time so that alternatives can be...
. Long term oriented societies attach more importance to the future. They foster pragmatic valuesPragmatismPragmatism is a philosophical tradition centered on the linking of practice and theory. It describes a process where theory is extracted from practice, and applied back to practice to form what is called intelligent practice...
oriented towards rewards, including persistence, saving and capacity for adaptation. In short term oriented societies, values promoted are related to the past and the present, including steadiness, respect for tradition, preservation of one’s face, reciprocationNorm of reciprocityThe norm of reciprocity is the social expectation that people will respond to each other in kind—returning benefits for benefits, and responding with either indifference or hostility to harms. The social norm of reciprocity often takes different forms in different areas of social life, or in...
and fulfilling social obligations.
- Indulgence, vs. restraint: Societies with a high rate of indulgence allow hedonisticHedonismHedonism is a school of thought which argues that pleasure is the only intrinsic good. In very simple terms, a hedonist strives to maximize net pleasure .-Etymology:The name derives from the Greek word for "delight" ....
behaviors: people can freely satisfy their basic needs and desires. On the opposite side, restraint define societies with strict social norms, where gratification of drives are suppressed and regulated.
Differences between cultures on the values dimensions
Putting together national scores (from 1 for the lowest to 120 for the highest), Hofstede’s six dimensions model allow international comparison between cultures, also called comparative researchComparative research
Comparative research is a research methodology in the social sciences that aims to make comparisons across different countries or cultures. A major problem in comparative research is that the data sets in different countries may not use the same categories, or define categories differently .-...
:
- Power distance index shows very high scores for Latin and Asian countries, African areas and the Arab world. On the other hand Anglo and Germanic countries have a lower power distance (only 11 for Austria and 18 for Denmark).
- For example, the United States has a 40 on the cultural scale of Hofstede’s analysis. Compared to Guatemala where the power distance is very high (95) and Israel where it is very low (13), the United States is in the middle.
- In Europe, power distance tends to be lower in northern countries and higher in southern and eastern parts: for example, 90 for Romania, 57 for Spain vs. 31 for Sweden and 35 for the United Kingdom.
- Regarding the individualism index, there is a clear gap between developed and Western countries on one hand, and less developed and eastern countries on the other. North America and Europe can be considered as individualistic with relatively high scores: for example, 80 for Canada and Hungary. In contrast, Asia, Africa and Latin America have strong collectivistic values: Colombia scores only 13 points on the IDV scale, and Indonesia 14. The greatest contrast can be drawn comparing two extreme countries on this dimension: 6 points for Guatemala vs. 91 points score for the United States. Japan and the Arab world have middle values on this dimension.
- Uncertainty avoidance scores are the highest in Latin American countries, Southern and Eastern Europe countries including German speaking countries, and Japan. They are lower for Anglo, Nordic, and Chinese culture countries. However few countries have very low UAI. For example, Germany has a high UAI (65) and Belgium even more (94) compared to Sweden (29) or Denmark (23) despite their geographical proximity.
- Masculinity is extremely low in Nordic countries: Norway scores 8 and Sweden only 5. In contrast, Masculinity is very high in Japan (95), and in European countries like Hungary, Austria and Switzerland influenced by German culture. In the Anglo world, masculinity scores are relatively high with 66 for the United Kingdom for example. Latin countries present contrasting scores: for example Venezuela has a 73 point score whereas Chile’s is only 28.
- High long term orientation scores are typically found in East Asia, with China having 118, Hong Kong 96 and Japan 88. They are moderate in Eastern and Western Europe, and low in the Anglo countries, the Muslim world, Africa and in Latin America. However there is less data about this dimension.
- There is even less data about the sixth dimension. Indulgence scores are highest in Latin America, parts of Africa, the Anglo world and Nordic Europe; restraint is mostly found in East Asia, Eastern Europe and the Muslim world.
Correlations of values with other country differences
Researchers have grouped some countries together by comparing countries value scores with other country difference such as geographical proximity, shared language, related historical background, similar religious beliefs and practices, common philosophical influences, identical political systemPolitical system
A political system is a system of politics and government. It is usually compared to the legal system, economic system, cultural system, and other social systems...
s, in other words everything which is implied by the definition of one nation’s culture.
For example, low power distance is associated with consultative political practices and income equity, whereas high power distance is correlated with the use of bribery and corruption in domestic politics and the unequal distribution of income. Individualism is positively correlated with mobility
Social mobility
Social mobility refers to the movement of people in a population from one social class or economic level to another. It typically refers to vertical mobility -- movement of individuals or groups up from one socio-economic level to another, often by changing jobs or marrying; but can also refer to...
between social classes and with national wealth. In fact, when a country gets richer it has been observed that people get more individualistic.
Another example of correlation has been drawn by the Sigma Two Group in 2003. They have studied the correlation between countries cultural dimensions and their predominate religion, based on the World Factbook 2002. On average, predominantly Catholic countries show very high uncertainty avoidance, relatively high power distance, moderate masculinity and relatively low individualism, whereas predominantly atheist countries tend to be collectivistic, with low uncertainty avoidance, moderate masculinity score and very high power distance.
Why is it important to be aware of cultural differences?
"Culture is more often a source of conflict than of synergy. Cultural differences are a nuisance at best and often a disaster."Despite the evidence that groups are different from each other, we tend to believe that deep inside all people are the same. In fact, as we are generally not aware of other countries’ cultures, we tend to minimize cultural differences. This leads to misunderstanding
Understanding
Understanding is a psychological process related to an abstract or physical object, such as a person, situation, or message whereby one is able to think about it and use concepts to deal adequately with that object....
s and misinterpretations between people from different countries.
Instead of the convergence phenomena we expected with information technologies availability (the “global village
Global Village (term)
Global Village is a term closely associated with Marshall McLuhan, popularized in his books The Gutenberg Galaxy: The Making of Typographic Man and Understanding Media . McLuhan described how the globe has been contracted into a village by electric technology and the instantaneous movement of...
culture”), cultural differences are still significant today and diversity tends to increase. So, in order to be able to have cross-cultural relations, we have to be aware of these cultural differences.
With his five dimensions model, Geert Hofstede shed light on these differences. Therefore, it is a great tool to use in order to have a general overview and an approximate understanding of other cultures and, to know how to behave towards individuals from other countries. Because, we still need to cooperate with members of other cultures, and maybe more than ever with the new problems which have arisen for several decades like environmental issue
Environmental issue
Environmental issues are negative aspects of human activity on the biophysical environment. Environmentalism, a social and environmental movement that started in the 1960s, addresses environmental issues through advocacy, education and activism.-Types:...
s. Therefore cross-cultural understanding is indispensable.
What are the practical applications of the theory?
Geert Hofstede is perhaps the best known sociologist of cultureSociology of culture
The sociology of culture concerns culture—usually understood as sets of cognitive meanings—as it is manifested in society. For Georg Simmel, culture referred to "the cultivation of individuals through the agency of external forms which have been objectified in the course of history".Cultural...
and anthropologist in the context of applications for understanding international business
International Business
International business is a term used to collectively describe all commercial transactions that take place between two or more regions, countries and nations beyond their political boundary...
. Many articles and research papers refer to his publications, with over 20,000 citations to his 2003 book Culture's Consequences: Comparing Values, Behaviors, Institutions and Organizations Across Nations (which is an updated version of his first publication). The five dimensions model is widely used in many domains of human social life
Social relation
In social science, a social relation or social interaction refers to a relationship between two , three or more individuals . Social relations, derived from individual agency, form the basis of the social structure. To this extent social relations are always the basic object of analysis for social...
, and particularly in the field of business. Practical applications were developed almost immediately. In fact, when it comes to business, promoting cultural sensitivity will help people work more effectively when interacting with people from other countries, and will participate to make transactions are successful.
International communication
In business, it is commonly agreed that communication is one of the primary concerns. So, for professionals who work internationally; people who interact daily with other people from different countries within their company or with other companies abroad; Hofstede’s model gives insights into other cultures. In fact, cross-cultural communication
Cross-cultural communication
Cross-cultural communication is a field of study that looks at how people from differing cultural backgrounds communicate, in similar and different ways among themselves, and how they endeavour to communicate across cultures.- Origins :The Cold War, the United States economy...
requires being aware of cultural differences because what may be considered perfectly acceptable and natural in one country, can be confusing or even offensive in another. All the levels in communication are affected by cultural dimensions: verbals (words and language itself), non verbals
Nonverbal communication
Nonverbal communication is usually understood as the process of communication through sending and receiving wordless messages. Messages can be communicated through gestures and touch , by body language or posture, by facial expression and eye contact...
(body language, gestures) and etiquette
Etiquette
Etiquette is a code of behavior that delineates expectations for social behavior according to contemporary conventional norms within a society, social class, or group...
do’s and don’ts (clothing, gift-giving, dining, customs and protocol). And this is also valid for written communication as explained in William Wardrobe’s essay "Beyond Hofstede: Cultural applications for communication with Latin American Businesses".
International negotiation
In international negotiation
Negotiation
Negotiation is a dialogue between two or more people or parties, intended to reach an understanding, resolve point of difference, or gain advantage in outcome of dialogue, to produce an agreement upon courses of action, to bargain for individual or collective advantage, to craft outcomes to satisfy...
s, communication style, expectation, issue ranking and goals will change according to the negotiators’ countries of origin. If applied properly, the understanding of cultural dimensions should increase success in negotiations and reduce frustration
Frustration
This article concerns the field of psychology. The term frustration does, however, also concern physics. In this context, the term is treated in a different article, geometric frustration....
and conflicts.
For example, in a negotiation between Chinese and Canadian, Canadian negotiators may want to reach an agreement and sign a contract, whereas Chinese negotiators may want to spend more time for non business activities, small talk
Small talk (phatic communication)
Small talk is an informal type of discourse that does not cover any functional topics of conversation or any transactions that need to be addressed....
s and hospitality
Hospitality
Hospitality is the relationship between guest and host, or the act or practice of being hospitable. Specifically, this includes the reception and entertainment of guests, visitors, or strangers, resorts, membership clubs, conventions, attractions, special events, and other services for travelers...
with preferences for protocol
Protocol (diplomacy)
In international politics, protocol is the etiquette of diplomacy and affairs of state.A protocol is a rule which guides how an activity should be performed, especially in the field of diplomacy. In diplomatic services and governmental fields of endeavor protocols are often unwritten guidelines...
and form in order to first establish the relationship.
“When negotiating in Western countries, the objective is to work toward a target of mutual understanding and agreement and 'shake-hands' when that agreement is reached – a cultural signal of the end of negotiations and the start of 'working together'.
In Middle Eastern countries much negotiation takes place leading into the 'agreement', signified by shaking hands. However, the deal is not complete in the Middle Eastern culture. In fact, it is a cultural sign that 'serious' negotiations are just beginning.”
International management
These considerations are also true in international management and cross-cultural leadership
Cross-cultural leadership
Cross-cultural psychology attempts to understand how individuals of different cultures interact with each other . Along these lines, cross-cultural leadership has developed as a way to understand leaders who work in the newly globalized market...
. Decisions taken have to be based on the country’s customs and values.
When working in international companies, managers may provide training to their employees in ordrer to make them sensitive to cultural differences, develop nuanced business practices, with protocols across countries. Hofstede's dimensions offer guidelines for defining culturally acceptable approaches to corporate organizations.
As a part of the public domain, Geert Hofstede’s work is used by numerous consultancies
Consultant
A consultant is a professional who provides professional or expert advice in a particular area such as management, accountancy, the environment, entertainment, technology, law , human resources, marketing, emergency management, food production, medicine, finance, life management, economics, public...
worldwide. But only 3 of them are regarded as partners and have Hofstede’s a full support with regular contacts.
- The American firm ITAP International Inc. and its ITAP International Alliance propose full-service consulting based on Hofstede’s approach using the Culture in the Workplace Questionnaire™
- Similarly, Itim international, headquartered in SwedenSwedenSweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....
offers culture and management consultancy, trainingTrainingThe term training refers to the acquisition of knowledge, skills, and competencies as a result of the teaching of vocational or practical skills and knowledge that relate to specific useful competencies. It forms the core of apprenticeships and provides the backbone of content at institutes of...
and coaching. - Itim focus, in the NetherlandsNetherlandsThe Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...
and FinlandFinlandFinland , officially the Republic of Finland, is a Nordic country situated in the Fennoscandian region of Northern Europe. It is bordered by Sweden in the west, Norway in the north and Russia in the east, while Estonia lies to its south across the Gulf of Finland.Around 5.4 million people reside...
, concentrate on change consultancy at organizational level.
International marketing
As in communication, negotiation and management, the five dimensions model is very useful in international marketing
International marketing
International marketing or global marketing refers to marketing carried out by companies overseas or across national borderlines. This strategy uses an extension of the techniques used in the home country of a firm...
too because it defines national values not only in business context but in general. Marieke de Mooij has studied the application of Hofstede’s findings in the field of global branding, advertising strategy
Advertising
Advertising is a form of communication used to persuade an audience to take some action with respect to products, ideas, or services. Most commonly, the desired result is to drive consumer behavior with respect to a commercial offering, although political and ideological advertising is also common...
and consumer behavior. As companies try to adapt their products and services to local habits and preferences they have to understand the specificity of their market.
For example, if you want to market cars in a country where the uncertainty avoidance is high, you should emphasize on their safety, whereas in other countries you may base your advertisement on the social image they give you.
Cell phone marketing is another interesting example of the application of Hofstede’s model for cultural differences: if you want to advertise cell phones in China, you may show a collective experience whereas in the United States you may show how an individual uses it to save time and money.
The variety of application of Hofstede’s abstract theory is so wide that it has even been translated in the field of web design
Web design
Web design is the process of planning and creating a website. Text, images, digital media and interactive elements are used by web designers to produce the page seen on the web browser...
ing in which you have to adapt to national preferences according to cultures’ values.
Limitations of Hofstede’s model
Even though Hofstede’s model is generally accepted as the most comprehensive framework of national cultures values by those studying business culture, its validity and its limitations have been extensively criticized. To give only one example, in a recent article in the Academy of ManagementAcademy of Management
The Academy of Management is a professional association for scholars dedicated to creating and disseminating knowledge about management and organizations. The Academy of Management was established in 1936...
's flagship journal, The Academy of Management Review, Galit Ailon deconstructs Hofstede's book Culture's Consequences by mirroring it against its own assumptions and logic. Ailon finds inconsistencies at the level of both theory and methodology and cautions against an uncritical reading of Hofstede's cultural dimensions. Literature in subjects actually studying culture, such as anthropology or social psychology, don't even mention the existence of Hofstede's model.
Questionable choice of national level
Aside from Hofstede's 5 cultural dimensions, there are other factors on which culture can be analyzed. There are other levels for assessing culture. These levels are overlooked often because of the nature of the construction of these levels.Individual level: cultural dimensions versus individual personalities
Hofstede acknowledges that the cultural dimensions he identified, as culture and values, are theoretical constructionSocial constructionism
Social constructionism and social constructivism are sociological theories of knowledge that consider how social phenomena or objects of consciousness develop in social contexts. A social construction is a concept or practice that is the construct of a particular group...
s. They are tools meant to be used in practical applications. Generalizations about one country’s culture are helpful but they have to be regarded as such, i.e. as guidelines for a better understanding. They are group-level dimensions which describe national averages which apply to the population in its entirely. Hofstede's cultural dimensions enable users to distinguish countries but are not about differences between members of societies. They don’t necessarily define individuals’ personalities
Personality psychology
Personality psychology is a branch of psychology that studies personality and individual differences. Its areas of focus include:* Constructing a coherent picture of the individual and his or her major psychological processes...
. National scores should never be interpreted as deterministic for individuals. For example, a Japanese person can have very comfortable in changing situation whereas on average, Japanese people have high uncertainty avoidance. There are still exceptions to the rule.
Hofstede’s theory can be contrasted with its equivalence at individual level: the trait theory
Trait theory
In psychology, Trait theory is a major approach to the study of human personality. Trait theorists are primarily interested in the measurement of traits, which can be defined as habitual patterns of behavior, thought, and emotion. According to this perspective, traits are relatively stable over...
about human personality.
Organizational level
Within and across countries, individuals are also parts of organizations such as companies. Hofstede acknowledges that “the […] dimensions of national cultures are not relevant for comparing organizations within the same country”. In contrast with national cultures, embedded in values, organizational cultures are embedded in practices.From 1985 to 1987, Geert’s institute IRIC (Institute for Research on Intercultural Cooperation) has conducted a separate research project in order to study organizational culture. Including 20 organizational units in two countries (Denmark
Denmark
Denmark is a Scandinavian country in Northern Europe. The countries of Denmark and Greenland, as well as the Faroe Islands, constitute the Kingdom of Denmark . It is the southernmost of the Nordic countries, southwest of Sweden and south of Norway, and bordered to the south by Germany. Denmark...
and the Netherlands
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...
), six different dimensions of practices, or communities of practice
Community of practice
A community of practice is, according to cognitive anthropologists Jean Lave and Etienne Wenger, a group of people who share an interest, a craft, and/or a profession. The group can evolve naturally because of the members' common interest in a particular domain or area, or it can be created...
have been identified:
- Process-Oriented vs. Results-Oriented
- Employee-Oriented vs. Job-Oriented
- Parochial vs. Professional
- Open System vs. Closed System
- Loose Control vs. Tight Control
- Pragmatic vs. Normative
Managing international organizations involves understanding both national and organizational cultures. Communities of practice across borders are significant for multinationals in order to hold the company together.
Occupational level
Within the occupational level, there is a certain degree of values and convictions that people hold with respect to the national and organizational cultureOrganizational culture
Organizational culture is defined as “A pattern of shared basic assumptions invented, discovered, or developed by a given group as it learns to cope with its problems of external adaptation and internal integration" that have worked well enough to be considered valid and therefore, to be taught to...
s they are part of. The culture of management as an occupation has components from national and organizational cultures. This is an important distinction from the organizational level.
Gender level
When describing culture, gender differences are largely not taken into consideration. However, there are certain factors that are useful to analyze in the discussion of cross-cultural communication. Within each society, men’s culture differs greatly from women’s culture. Although men and women can often perform the same duties from a technical standpoint, there are often symbols to which each gender has a different response. In situations where one gender responds in an alternative manner to their prescribed roles, the other sex may not even accept their deviant gender role. The level of reactions experienced by people exposed to foreign cultures can be compared similarly to the reactions of gender behaviors of the opposite sex. The degree of gender differentiationGender identity
A gender identity is the way in which an individual self-identifies with a gender category, for example, as being either a man or a woman, or in some cases being neither, which can be distinct from biological sex. Basic gender identity is usually formed by age three and is extremely difficult to...
in a country depends primarily on the culture within that nation and its history.
See also
- Cultural relativismCultural relativismCultural relativism is the principle that an individual human's beliefs and activities should be understood by others in terms of that individual's own culture. This principle was established as axiomatic in anthropological research by Franz Boas in the first few decades of the 20th century and...
- Cultural norms
- Cultural identityCultural identityCultural identity is the identity of a group or culture, or of an individual as far as one is influenced by one's belonging to a group or culture. Cultural identity is similar to and has overlaps with, but is not synonymous with, identity politics....
- Culture shockCulture shockCulture shock is the anxiety, feelings of frustration, alienation and anger that may occur when a person is emplaced in a new culture.One of the most common causes of culture shock involves individuals in a foreign country. Culture shock can be described as consisting of one or more distinct phases...
- National character studiesNational Character StudiesNational character studies refers to a set of anthropological studies conducted during and directly after World War II that arose from the Culture and Personality School within psychological anthropology....
- National identityNational identityNational identity is the person's identity and sense of belonging to one state or to one nation, a feeling one shares with a group of people, regardless of one's citizenship status....
- Cross-cultural communicationCross-cultural communicationCross-cultural communication is a field of study that looks at how people from differing cultural backgrounds communicate, in similar and different ways among themselves, and how they endeavour to communicate across cultures.- Origins :The Cold War, the United States economy...
- Intercultural communicationIntercultural communicationIntercultural communication is a form of global communication. It is used to describe the wide range of communication problems that naturally appear within an organization made up of individuals from different religious, social, ethnic, and educational backgrounds. Intercultural communication is...
- Intercultural communication principlesIntercultural communication principlesIntercultural communication principles guide the process of exchanging meaningful and unambiguous information across cultural boundaries, in a way that preserves mutual respect and minimises antagonism. For these purposes, culture is a shared system of symbols, beliefs, attitudes, values,...
- International relationsInternational relationsInternational relations is the study of relationships between countries, including the roles of states, inter-governmental organizations , international nongovernmental organizations , non-governmental organizations and multinational corporations...
- Intercultural competenceIntercultural competenceIntercultural competence is the ability of successful communication with people of other cultures.A person who is interculturally competent captures and understands, in interaction with people from foreign cultures, their specific concepts in perception, thinking, feeling and acting...
- Cross-cultural leadershipCross-cultural leadershipCross-cultural psychology attempts to understand how individuals of different cultures interact with each other . Along these lines, cross-cultural leadership has developed as a way to understand leaders who work in the newly globalized market...
- Emotions and CultureEmotions and cultureEmotions are universal phenomena; however, they are affected by culture. While some emotions are universal and are experienced in similar ways as a reaction to similar events across all cultures, other emotions show considerable cultural differences in their antecedent events, the way they are...
- Uncertainty reduction theoryUncertainty reduction theoryUncertainty Reduction Theory was introduced in 1975 in the paper Some Exploration in Initial Interaction and Beyond: Toward a Developmental Theory of Interpersonal Communication. This theory, a collaborative effort of Charles R. Berger and Richard J. Calabrese, was proposed to predict and explain...
- Sociology of genderSociology of genderSociology of gender is a prominent subfield of sociology. Since 1950 an increasing part of the academic literature, and of the public discourse uses gender for the perceived or projected masculinity or femininity of a person...
- Fons TrompenaarsFons TrompenaarsFons Trompenaars is a Dutch author and consultant in the field of cross-cultural communication. His books include: Riding the Waves of Culture, Seven Cultures of Capitalism, Building Cross-Cultural Competence, 21 Leaders for the 21st Century and Innovating in a Global Crisis...
- Edward T. HallEdward T. HallEdward Twitchell Hall, Jr. was an American anthropologist and cross-cultural researcher. He is remembered for developing the concept of Proxemics, a description of how people behave and react in different types of culturally-defined personal space...