The Role of Culture 4-1 Griffin & Pustay Copyright 2010 Pearson Education, Inc publishing as Prentice Hall International Business, 6th Edition chapter Chapter Objectives • Discuss the primary characteristics of culture • Describe the various elements of culture and provide examples of how they influence international business • Identify the means by which members of a culture communicate with each other 4-2 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Chapter Objectives (continued) • Discuss how religious and other values affect the domestic environments in which international businesses operate • Describe the major cultural clusters and their usefulness for international managers • Explain Hofstede’s primary findings about differences in cultural values • Explain how cultural conflicts may arise 4-3 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Culture Culture is the collection of values, beliefs, behaviors, customs, and attitudes that distinguish one society from another A society’s culture determines the rules that govern how firms operate in the society 4-4 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Characteristics of Culture • Learned behavior • Interrelated elements • Adaptive • Shared 4-5 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Figure 4.1 Elements of Culture Language Social structure Communication Culture Values/ attitudes 4-6 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Religion Social Structure Individuals, families, and groups Social stratification Social mobility 4-7 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Language • 3000+ different languages worldwide • 10,000+ different dialects • Primary delineator of cultural groups 4-8 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Map 4.1 World Languages 4-9 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Map 4.2 Africa’s Colonial Legacy 4-10 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Values and Attitudes (continued) 4-23 Time Age Education Status Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Theories of Culture • Hall’s Low-Context, High-Context Approach • Cultural Cluster Approach • Hofstede’s Five Dimensions 4-24 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Hall’s Low-Context High-Context Approach An approach to understanding communication based on the relative emphasis on verbal and nonverbal cues to transmit meaning 4-25 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall 4-26 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Chinese Korean Japanese Vietnamese Arab Greek Spanish Italian High Context British Scandinavian Swiss German Low Context U.S / Canadian Figure 4.2 High- and Low-Context Cultures The Cultural Cluster Approach An approach to understanding communication based on meaningful clusters of countries that share similar cultural values 4-27 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Map 4.4 A Synthesis of Country Clusters 4-28 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Hofstede’s Five Dimensions Social Orientation Power Orientation Uncertainty Orientation Goal Orientation Time Orientation 4-29 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Social Orientation Individualism Collectivism Relative importance of the interests of the individual versus interests of the group 4-30 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Power Orientation Power Respect Power Tolerance Appropriateness of power/authority within organizations 4-31 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Figure 4.4 Social Orientation and Power Orientation Patterns 4-32 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Uncertainty Orientation Uncertainty Acceptance Uncertainty Avoidance Emotional response to uncertainty and change 4-33 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Goal Orientation Aggressive Passive What motivates people to achieve different goals 4-34 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Time Orientation Long-term outlook Short-term outlook The extent to which members of a culture adopt a long-term or a short-term outlook on work and life 4-35 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Understanding New Cultures Self-reference criterion Cultural literacy 4-36 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Acculturation All rights reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher Printed in the United States of America Copyright © 2010 Pearson Education, Inc publishing as Prentice Hall .. .Chapter Objectives • Discuss the primary characteristics of culture • Describe the various elements of culture and provide examples of how they influence international business... Education, Inc publishing as Prentice Hall Chapter Objectives (continued) • Discuss how religious and other values affect the domestic environments in which international businesses operate • Describe... international businesses operate • Describe the major cultural clusters and their usefulness for international managers • Explain Hofstede’s primary findings about differences in cultural values