Business Culture in Canada and the US: Convergence or Divergence

Derek MatthewsNorwegian School of Management, BI

Department of Culture, Communication and Languages

This is the transcript of an ACTUAL radio conversation of a US naval ship with Canadian authorities off the coast of Newfoundland in October, 1995. Radio conversation released by the Chief of Naval Operations.

Americans: Please divert your course 15 degrees to the North to avoid a collision.Canadians: Recommend you divert YOUR course 15 degrees to the South to

avoid a collision.Americans: This is the Captain of a US Navy ship. I say again, divert your course.Canadians: No. I say again, you divert YOUR course.Americans: THIS IS THE AIRCRAFT CARRIER USS LINCOLN, THE SECOND

LARGEST SHIP IN THE UNITED STATES' ATLANTIC FLEET. WE ARE ACCOMPANIED BY THREE DESTROYERS, THREE CRUISERS AND NUMEROUS SUPPORT VESSELS. I DEMAND THAT YOU CHANGE YOUR COURSE 15 DEGREES NORTH, THAT'S ONE FIVE DEGREES NORTH, OR COUNTER-MEASURES WILL BE UNDERTAKEN TO INSURE THE SAFETYOF THIS SHIP.

Canadians: This is a lighthouse. It's your call.

Canadian & US Business Cultures

Historical paths Revolution and counterrevolution Literature, myths & symbols Business culture: a few gurus Convergence or divergence

Historical Paths

1607 Jamestown 1776 -1791

Declaration and War of Independence

Constitution, B of R

1861-65 Civil War

1608 Québec 1774 Québec Act

GBr solves a crisis

1780’s Loyalists Piecemeal progress

1791, 1840

July 1, 1867 protectionism

1982 Patriation

Revolution vs Counterrevolution*

Law and deviance Economy Centre and periphery Stratification Can / US Identity Literature & Myths

* Seymour Martin Lipset, 1990

Literature & Myths: a little story*

Oedipus

Telemachus

Literature The frontier, rebel, extrovert Survival, victim, introvert

*Russel Brown 1979

x

American symbols

“Life, Liberty and the Pursuit of Happiness”

Canadian Symbols

“Peace, Order and Good Government”

Revolution vs Counterrevolution

Rebellion Individualism Independence Self-reliance Self-confidence Freedom Decisiveness Control of destiny

Counter-rebellion Deference Dependence Reliance Caution London calls the shots Divisiveness (Fr/Eng) Survival

Geert Hofstede: 4 dimensions Individualism vs Collectivism

self-interest vs group interest/loyalty Power distance

High= respect for authority, inequality, distance Masculine / Feminine

M: tough, competitive, gender inequality Uncertainty Avoidance

High: avoid ambiguity, systematic, predictable

Findings: Hofstede Similarities

Individualism: 1 US, 2 Aust, 3 UK, 4 Can Power Distance: Low - 38 US, 39 Can Uncertainty Avoidance: Low - 42 Can, 43 US

(Differences) Masculine: High - 15 US, 24 Can

Observations Ind: rights & merit (US) vs merit (Can) Power distance:? Masc: US - long hours, live to work

Fons Trompenaars: 6 of 7 dimensions

Universalism vs Particularism Affective vs Neutral Specific vs Diffuse Achievement vs Ascriptive orientation Sequential vs Synchronic Inner vs Outer-directed

Findings: Trompenaars

Similarities Universalist (follow the rules/equal treatment) Achievement-oriented (US), Specific (US),

Affective (US), Inner-directed (US) Observations

Can more universalist (respect vs the law) US: achievers, more expressive, captains of

their own fate

Richard Gesteland

Similarities deal-focused, direct, informal, time-conscious,

egalitarian

Differences Canadians: less expressive, less assertive,

slightly more formal and conservative, not as time-obsessed

Compared to Americans Canadians are

less authoritative less decisive less assertive less nationalistic less gun happy

Canadians show more respect for authority more caution more reserve more modesty more conservatism

Convergence: Do we have a choice? American influence

Economy US ownership, FTA (’89)/NAFTA (’94)

Politics Charter of Rights & Freedoms Pressure to conform (eg Customs & Immigration)

Culture Americanization, Media

Longest border “Brain drain” - many go

Convergence: Do we have a choice?

Neil Nevitte “Decline of Deference” (1996) World Values Survey (1981- 90) in Europe & NA Political, economic and social orientations

12/12 Rise in: principle of tolerance, support for meritocracy, pride in

work, interest in politics, egalitarian spousal relations, egalitarian parent/ch relations

Can/US: same direction - 22/25 dimensions except church attendance & job/financial satisfaction Canada led on 16 of 22 13 parallel, 6 converge, 6 diverge

Divergence? Economy

strong gov’t, universal health, welfare state Politics

different system Canada for: nuclear test ban treaty, anti-landmine,

Kyoto, Int’l Criminal Court, banning biological weapons, remaining in Bosnia . . .

“Brain drain” many stay, many come