Cross cultural issues

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Cross cultural issues

• Dr Joan Harvey
• Joan.Harvey_at_ncl.ac.uk

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What are we covering today?

• Understanding of culture and cultural
  differences
• Looking at two studies using a risk perspective
• Driving
• Management differences UK vs Zim
• Asking the question to what extent do attitudes,
  values amd behaviour vary across cultures?

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Conceptualising risk issues and culture

• Culture as shared values
• Collective programming of the mind that
  distinguishes the members of one group or
  category of people from others Hofstede and
  Hofstede, 1995
• Evident in rules, procedures, how we do things
  around here
• Is learned
• Risk taking, risk awareness
• Risk avoidance, loss avoidance or uncertainty
  avoidance?

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Why is cross-culture important?

• Costly IJV failures
• Breakdown of expatriate assignments
• Breakdown of collaborative assignments
• Product failure, errors, poor quality
• Failure to understand markets, business partners,
  consumers
• Misunderstandings can cause aggression, etc.
• Perception differences, including risk

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How has culture been investigated and studied?

• Social anthropology
• International Business
• Sociolinguistics and communications
• Early work in Psychology was limited to things
  such as
• Differences in perception of values of coins
  amongst children from different ethnic bases
• Linguistics included class as well as
  cross-cultural differences
• We will look at several writers today, including
  Hofstede, Trompenaars and Hall

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Geert Hofstede 1

• Dutch social anthropologist
• Obtained attitude data from IBM worldwide in late
  1970s
• Factor analysed and looked for factors which
  differentiated nationalities
• Data on 50 countries, but only sufficient N for
  40 in first book
• Generally accepted as the most important now in
  cross-culture
• But still limitations in his theory

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Geert Hofstede 5 factors

• Masculinity femininity
• Essentially the differentiation of sex-roles vs.
  both sex-roles considered the same
• Ambition and desire to achieve vs. social concern
  and interpersonal relationships
• Power distance
• The tolerance of small or large power
  differentials Amount of power that can be wielded
• Uncertainty avoidance
• Tolerance of ambiguity, flexibility vs.
  preference for structure
• Individualism- collectivism
• Help and commitment to group versus high personal
  achievement
• LT-ST orientation added later in 1990s
• Confucian dynamism principles on both sides,
  primarily time-based

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Geert Hofstede

• All countries will have changed in last 30 years
• Eastern Europe
• Developing countries that are now developed
• Political changes
• Changes in technology and global communication
• Migration of peoples
• Are cross-cultural differences still as
  pronounced?
• In-group vs out-group explanations

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Geert Hofstede

• Issues
• This study put cross-cultural differences into
  the mainstream rather than as error variance in
  other studies
• Encouraged other theorists
• Recent research has allowed many more countries
  to be mapped

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Country PD UAI MF IC LTO
Germany 35 65 66 67 31
China 80 30 66 20 118
USA 40 46 62 91 29
Japan 54 92 95 46 80
UK 35 35 66 89 25
Finland 33 59 26 63 41
Austria 11 70 79 55 31
India 77 40 56 48 61
Hungary 46 82 88 80 50
Denmark 18 23 16 74 46
Czech Rep 57 74 57 58 13
Slovakia 104 51 110 52 38
Poland 50 72 60 55 31
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Comments on these data

• Short-terms orientation in e.g. UK clearly shown
  in how the financial markets behave- out to get
  the quick buck
• Chinese and Japanese businesses into investment
  for the longer term, built on relationships and
  family structures

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Examples of other theories a Trompenaars 7
factors

• Universalism versus particularism
• Work relationships mixed with personal ones
• Individualism versus collectivism
• Affective versus neutral culture
• Specific versus diffuse relationships
• Distinct relationships versus diffuse ones
• Achieving versus ascribing status
• Earned through achievement or recognised e.g.
  seniority/age
• Perception of time
• Sequential monochronic or parallel
  polychronic
• Relating to nature

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Example b GLOBAL project

• Assertiveness
• Future orientation
• Gender egalitarianism
• Humane orientation
• Institutional collectivism
• In-group collectivism
• Performance orientation
• Power distance
• Uncertainty avoidance

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Two more factors that are interrelated.

• Time perception
• Polychronic or cyclical e.g. southern Europe,
  China, Japan
• Monochronic e.g. northern Europe, US
• Context Edward Hall
• High means that perception of what is said is
  taken in context, including NVCs
• Low means words are interpreted literally

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Other dimensions from indigenous social psychology

• China
• Confucian values
• Filial piety
• Industriousness
• Giving and protecting face
• Thrift
• Guanxi
• Social networking crucial to business
  relationships
• Ren ching
• Respectful exchange of gifts, favours and
  obligations

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Other dimensions

• Japan
• Amae and respect
• Reliance and dependence upon indulgent love of an
  older person
• Kanban
• Concept of whole transcending sum of parts
• Ringi
• Upward communications and decision making
• Sacred treasures-
• life time employment, seniority, enterprise
  unions/families
• Harmony and cooperation wa
• Gakureki Shakai
• Social system attaching value to education

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Example Theory Z

• Application of Japanese management principles to
  American British businesses
• Long term focus
• Zero tolerance
• Personal responsibility for self-development
• Positive attitudes to seniority
• Teamwork rather than individual achievement
• Commitment and trust
• Quality and pride
• Multi-skilling

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Other dimensions

• Africa
• Cognitive tolerance
• Not on seat
• Africa time
• Indaba Malawi
• Ubuntu Malawi
• Tribal loyalty
• Power and respect based on experience
• Managers right to manage

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Other dimensions

• Several cultures resent intrusiveness of
  western values, western research methods, e.g.
• Philippines
• Sub-Saharan Africa
• India
• China

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Other dimensions

• Latin American countries emphasis on
• Respect
• Family
• Hierarchy
• Honour
• Affiliative obedience
• Cultural rigidity
• Machismo
• Sympatia

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Other dimensions

• India
• Detachment as a coping mechanism, therefore
  working hard is unrelated to success or failure
• Ingratiation techniques to advance personal goals
  within hierarchical collective context
• similar to parts of western Africa

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Exercise

• Now to discuss and answer the following
  question
• What are the factors that might determine
  differences in attitudes to business and risk
  between
• China
• UK
• Italy
• Present your reasons for three of the factors

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Effects of cultural differences

• How society functions
• Basic values and beliefs- lifestyles
• Relationships in organizations
• Gambling and investment behaviours
• Consumer behaviour
• Driver behaviour

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Study into driver behaviour theories for
risk-taking in drivers

• Risk homeostasis
• Risk avoidance
• Sensation seeking
• Flow, arousal
• Motivation, intrigue and curiosity
• Fatigue
• Vigilance

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But do these apply across cultures?

• Risk homeostasis and risk avoidance- cultural
  differences known
• Sensation seeking- individualism-related so will
  be less strong in Pacific rim countries
• Flow- probably a western concept
• Motivation, intrigue and curiosity- known to be
  conceptually different in many cultures
• Arousal and fatigue
• Vigilance- may vary according to cultural norms

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Did we expect cross-cultural differences? Yes

• Evidence from Australia and Finland shows
  differences in safety skills
• Differences in driver anger between UK and US
• Finland, UK Netherlands differ from Turkey, Iran
  and Greece combination of driving style and
  culture in determining N accidents
• Americans more risk-averse than Chinese in
  relation to buying risky financial options in
  1998, not necessarily now!

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Other findings

• Significant country differences in
• speeding penalties, parking offences,
• mean annual mileage and mean yrs driving,
• F1 responses to under-stimulation,
• F3 lapse and error proneness
• F4 anxiety
• Corrrelations of personality factors with F1
• Significant sex differences for
• F2 enthusiasm and flow, F3 lapses and F4 anxiety
• Significant age differences for
• At fault crashes
• Annual mileage

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F3 Lapse and error proneness
UK US
Men 26.02 29.45
Women 28.16 33.18
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Possible causal cross-cultural differences?

• Hofstede factors?
• Uncertainty avoidance or flexibility X
• Masculinity femininity X
• Individualism collectivism X
• Power distance X
• Long term short term orientation X
• Other relevant factors
• High or low context cultures Poss
• Time perception Poss
• Risk perception, risk awareness Prob
• Anger management Prob
• Motivational differences Prob

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A reminder for US vs UK/ Europe
Country PD UAI MF IC LTO
Germany 35 65 66 67 31
China 80 30 66 20 118
USA 40 46 62 91 29
Japan 54 92 95 46 80
UK 35 35 66 89 25
Finland 33 59 26 63 41
Austria 11 70 79 55 31
India 77 40 56 48 61
Czech 57 74 57 58 13
Slovakia 104 51 110 52 38
Poland 50 72 60 55 31
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Implications

• This was a small study, possibly not
  representative, but the evidence here is
  consistent
• drivers in US and UK/Europe show differences in
  propensity to boredom, personality correlates of
  driving and a series of driver metrics.
• So is it the drivers culture or the environment
  that is the cause of these differences, or both?

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Cross-cultural differences?

• Situational/environmental causes?
• Driving in US rural areas is much lower stimulus
  driving than UK or Europe
• Overtaking manoeuvres more dangerous, more
  lapses less likely in US
• Road planners need to think very hard about
  putting interest back into the roads-
• more bends in roads,
• more not less scenery,
• more things to do.
• Driver causes
• US and UK relatively similar in Hofstede factors,
  although other Europeans differ more.
• So could it be risk perceptions or driving
  attitudes that differentiate US and Uk/Europe?

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Quiz questions

• 1 In sub-Saharan Africa, it is important not to
  be late for meetings Yes No
• 2 In sub-Saharan African countries, a manager
  should use command rather than persuasion
  Yes No
• 3 It is important to get to know your host before
  doing business in the Middle East Yes No

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More.

• 4 When given a business card by a Japanese
  business person, what should you do with it and
  why?
• 5 Would you start a presentation to Japanese
  business people with an apology? Yes no
• 6 If offered coffee by an Arab, if you didn't
  like coffee, should you refuse it? Yes no

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For doing business.

• 7 Trust is important in

• 8 Seniority or age is important

• Japan
• Malaysia
• USA
• China

• Japan
• Malaysia
• USA
• China

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Study example UK vs Zimbabwean Managers

• Attitude and motivational differences measured
• Status, prestige, loyalty
• Social approval
• Motive strength and work values
• 117 African managers, mostly from Zim but a few
  from Botswana 32 women
• 82 British managers 58 women
• Similar ages

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Study results

• Cultural differences found in
• Importance of status, position, pride and
  prestige
• Social approval
• Loyalty to work colleagues tribal
• No differences found for
• Courtesy
• Accept criticism
• Admit mistakes
• Loyalty to friends and family

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A few more to compare
Country PD UAI MF IC LTO
China 80 30 66 20 118
USA 40 46 62 91 29
Japan 54 92 95 46 80
UK 35 35 66 89 25
Arab Cs 80 68 53 38 -
E Africa 64 52 41 27 25 Zim
W Africa 77 54 46 20 -
Spain 57 86 42 51 19
Italy 50 75 70 76 34
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What can other research add?

• Specific aggressive behaviours in driving are
  associated with cultural norms Shinar, 1998
• Chinese from PRC more risk-seeking in investments
  than USA Weber and Hsee, 1998
• US more risk-averse than Spanish Zinkhan
  Karande 1990
• Differences in risk preference between PRC, USA,
  Germany and Poland Weber and Hsee 1998
• Many nationality differences found in
  sensation-seeking and risk taking Pizam et al,
  2004

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More research

• Risk judgements taken by HK and Taiwan more
  sensitive to magnitude of potential losses and
  less mitigated by prob positive outcomes than
  Netherlands and US Bontempo et al, 1997
• Culturally diverse groups had more problems with
  interaction behaviours that interfered with
  problem-solving Watson and Kumar 1992
• Risk perception ratings of drivers Spanish
  highest, US lowest, younger perceived less risk
  cf West German and Brazil Sivak et al 1989

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And more.

• Australia- issues in risk-taking include
  self-improvement, emotional engagement and
  control Lupton Tulloch, 2002
• Turkish drivers smaller safety margins that do
  not allow corrective manoevres Ozkan et al,
  2006
• Using simulated intersection crossing, West
  Germans made fewer attempts, greater p(success),
  greater safety margins than US or Spanish Sivak
  et al, 1989

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Summary of cultural difference issues across the
studies

• Power distance Uncertainty avoidance
• Individualism-collectivism Masculinity-femininity
  
• LT/ST orientation Risk perception
• Risk aversion Affect, including anger
• Motivation Need for harmony
• Respect and piety Trust
• Responses to errors Violations
• Context communications Time perception
• Social approval Groupthink, shift to risk
• In-group bias and tribalism Leadership/
  management
• And all these can affect how we work and behave
  in many situations!

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But we should not forget..

• That the scores for countries have considerable
  within-groups variation.
• That some countries e.g. India, US have large
  ethnic sub-groups which will be different to the
  country averages.
• So I can propose that countries may divide on
  each dimension into 3 perhaps Individualism-colle
  ctivism into 5 broad groupings.

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Key texts

• Hofstede G and Hofstede G (2005) Culture and
  Organizations Software of the mind. 2nd ed
  London McGraw Hill
• Lewis RD (2007) When Cultures Collide. 3rd ed
  London Nicholas Brearley

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Thank you for your attention

• Joan Harvey
• Newcastle University, United Kingdom and
  Visiting Professor, Czech University of Life
  Sciences CZU
• Joan.Harvey_at_ncl.ac.uk
• With thanks to
• Neil Thorpe, Newcastle University, United Kingdom
  
• Corinne Mulley, Professor of Transport Economics,
  University of Sydney, Australia
• Ludek Kolman, CZU