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CHAPTER 4

VALIDATION OF HOFSTEDE’S CULTURAL DIMENSIONS:

A QUALITATIVE ANALYSIS

This chapter describes the exploratory and validation phase which helped

in arriving at the basic framework of culture that could be meaningful and

relevant to the Indian regional context and that can possibly influence the

performance of micro, small and medium entrepreneurs in India. The

previous chapter made an extensive review of the relationship between

entrepreneurial behaviours and the respective region’s cultural

environment. It also analyzed some of the major theories that define

cultural dimensions of a region or country from where the six cultural

dimensions of Hofstede have been considered as the most appropriate for

the Indian context. A qualitative survey, based on semi-structured

questionnaire, of forty experts was undertaken to validate the relevance

and adequacy of Hofstede’s framework for India and also to bring out a

cultural dimensional framework relevant to the micro, small and medium

entrepreneurs in India.

4.1 Etic and Emic approaches to cross-culture research

Hofstede’s framework has been considered as the baseline and an attempt is made to

understand how relevant they are in the Indian regional context. The framework as

derived by Hofstede had used an “Etic” (global and scientific) approach. As these

dimensions are used in India it was felt necessary to take an insider view: an “Emic”

(insider or bottom up) approach could be used to assess whether these factors were

sufficient to define the various cultural outlooks across the various regions of the

country.

In this context it was necessary to understand the significance of etic and emic

approaches to cross-culture research. An emic approach looks at the insider

perspectives of the “native members of the culture whose beliefs and behaviours were

being studied” (Lett, 1990, p. 130). This approach gives importance to the local

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viewpoints. An etic approach, on the other hand, is often termed as outsider or

deductive or global and its comparisons across countries and contexts and facilitates

debate on cross-cultural concepts (Morris et al, 1999). The etic vs. emic dichotomy in

research has often been attributed respectively to the distinction between global or

universal vs. the native culture specific approach; the distinction is also due to

quantitative vs. qualitative approach (Buckley et al, 2014). As Morris et al (1999)

contemplated, the divide between emic and etic could be explained with respect to

field work done by Rohlen (1974) as compared to the cross country culture studies

done by Hofstede (1980).

In the emic approach to this study, views were sought from Indian experts to

understand the fitment of Hofstede’s cultural dimensions in the Indian context and

also to examine if there were other important dimensions that could influence the

performance of micro, small and medium entrepreneurs which ought to be looked

into.

4.2 Hofstede’s findings of Indian cultural traits

The Indian country level cultural dimensions as viewed though the six dimensional

framework of Hofstede is given in Fig. 4.2.1.

Fig. 4.2.1: Hofstede’s Cultural Dimensions – India

Source: http://geert-hofstede.com/india.html

55

The scores provided by Hofstede (Fig.4.2.1) was a comparative index and the high,

intermediate and low rating was as per his comparison with those of various other

countries of the world.

Power Distance (high vs. low): India has a high score of 77 indicating that the people

have a relatively high level of adherence to power hierarchies and where employees

expect to be directed by their bosses.

Collectivism vs. Individualism: The score is an intermediate value of 48 which

indicates that both collectivism and individualism exist in almost equal measures.

Masculinity vs. Femininity: The score in this case is high at 56 which indicates that

the Indian society is majorly driven by achievements, success and competitive spirit

which are perceived to be masculine attributes.

Uncertainty Avoidance (high vs. low): India scores a medium to low score of 40 in

this case. Indians have the medium to low preference for uncertainty avoidance.

Long Term (Pragmatic) vs. Short Term (Normative) Orientation: The score is a

relatively high score of 51 which shows a reference for a long term and pragmatic

culture.

Indulgence vs. Restraint: India has a low score of 26 for this dimension which

indicates a low preference for Indulgence and that it is a predominantly ‘Restraint’

culture.

4.3 Interactions with experts: A Qualitative Approach

A study was undertaken to validate the six cultural dimensions for India and also to

see whether there were any additional dimensions beyond what Hofstede had

envisaged for India. Semi-structured questionnaires were administered to a panel of

forty experts from different regions and professions. The panel of experts consisted of

micro, small and medium entrepreneurs, professionals from private industrial sector,

professionals from academics, legal, arts & culture, banking and non-banking

financial sectors and Indian bureaucracy and public services undertakings.

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Table 4.3.1 provides the descriptive statistics of the panel of experts considered for

the structured interview and Table 4.3.2 provides the details of the structured

questions put forth. Care was taken to include experts from every section of the

society. Effort was also taken to include people hailing from various regions of the

country.

Table 4.3.1: Descriptive statistics of panel of experts

Expertise Profile Count

Age Range

Min Max

Micro, small and medium Entrepreneurs 3 45 55

Professionals from Private Industrial Sector 10 42 65

Professionals from Academics, Legal, Arts & Culture 15 42 70

Professionals from Banking and Non Banking Financial

Sector

7 57 68

Professionals from Indian Bureaucracy and Public

Services Undertaking 5 52 70

The questions (Table 4.3.2) put forth to the forty experts had one common thread: to

identify the behaviour of each of the six dimensions of Hofstede in the Indian context.

Along with the questionnaire a brief description of these cultural dimensions as

promulgated by Hofstede was provided to each of these experts. A succinct paper by

Hofstede (2010) was also provided for better understanding of these dimensions.

The expected responses included those on the expert’s impression about the

applicability of Hofstede’s postulates on culture: are they valid for Indian micro,

small and medium entrepreneurs, and if so how much. Secondly they were expected

to give their views on any additional dimensions which Hofstede had not

conceptualized in his framework but could be important in the study of Indian culture

as applicability to micro, small and medium entrepreneurs.

The responses received were qualitatively analysed to validate the relevance and

adequacy of Hofstede’s cultural framework for the Indian context. An analytical

cultural framework was then arrived at for further studies on the cultural determinants

on the entrepreneurial efficiency in the case of Indian MSMEs.

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Table 4.3.2: Interview Questions put across to the Experts

Questions

1 Do less powerful members of the Indian society accept unequal distribution of

power

2 1. According to you what type of societal orientation (collectivism or

individualism) is practiced in the various Indian regions?

2. Do you think collectivism brings about social network and social

reciprocity?

3 Are the people in various part of India strongly uncomfortable to uncertainties?

4 Are masculinity and femininity traits relevant in the cultural composition of

people in the various regions of India? If so, which is the more dominant trait?

5 What type of orientation do the people of various regions of India subscribe to?

Are they pragmatic (long term oriented)? Or are they normative (short term

oriented)?

6 Are people from different regions of India Indulgent or Restraint?

7 Do any other cultural values or characteristics which do not figure in the above

framework, but according to you assume importance in the Indian, regional

context?

If so, what are those characteristics?

4.4 Findings and Analysis

The experts had distinct views on the applicability of Hofstede’s dimensions. Table

4.4.1 summarises the experts’ evaluation of Hofstede’s dimensions. Hofstede’s latest

evaluation of Indian culture provides a high score of 77 (Fig. 4.2.1) indicating that the

Indian society has a higher level of acceptance of power hierarchies. The experts also

opine that Indians have a relatively high level of acceptance of power hierarchies

except that this level of acceptance varies across regions based on gender, literacy

levels, social and ethnic orientations. People of certain regions especially in South and

North East India tend to go beyond the power inequalities and aspire for

interdependence and collaborative working style as against hierarchical power

structures.

The experts opined that both Collectivism and Individualism were practiced in the

country – collectivism was practiced more by the business communities. This was

more in agreement with Hofstede’s intermediate score of 48 (Fig 4.2.1) which

indicated the presence of both individualism and collectivism. The experts also

observed that while collectivism in many cases could lead to social networking and

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reciprocity there were instances when collectivism triggered by political and

communal reasons turns sectarian which need not necessarily lead to social welfare.

These types of collectivism could often unsettle and disrupt the social and group

objectives as well as efforts taken to achieve social objectives. Similarly, certain

cases of individualistic practices could also be unsettling or disruptive. This was one

major input which went beyond Hofstede’s findings in the Indian context.

Uncertainty avoidance as a cultural attribute received a low score of 40 in Hofstede’s

evaluation (Fig. 4.2.1). This score was in line with the experts’ view that Indians were

generally tolerant to uncertainties. Majority of the Indians were economically and

socially backward and did not have the choice or capability to take measures to avoid

uncertainty. They were forced to face uncertainties and could foresee or control very

little. People in the villages are more tolerant to uncertainties while those in the urban

areas are relatively less tolerant to uncertainties. The experts also opined that low

levels of uncertainty avoidance were seen among the business communities which

amount to their higher risk-taking propensity.

Hofstede’s score for Masculinity was a moderate 56 (Fig. 4.2.1). This means that

while there was a simple majority of people who prioritize on competition,

achievement and success, there were enough people in the country who were caring

and who uphold the quality of life. The experts observed that in many parts of the

country the same person was found to have elements of both Masculinity and

Femininity, especially when the person was from the lower echelons of society. They

also stated that the two traits were spread across the country with certain regions

accounting for a predominance of masculine behaviour while the other parts show

higher levels of feminine behaviour.

The experts observed that Indian culture was a mix of pragmatic and normative

behaviours and that the reasons were historic and linked to a person’s religious and

personal beliefs, traditions and her/his social and ethnic identity. The level of

adherence changes based on factors like literacy, nature of social groups, adherence to

religious beliefs, traditions etc. Hofstede’s high score of 51 for long term or pragmatic

orientation (Fig. 4.2.1) on the other hand indicated that the Indian culture was long

term and pragmatically oriented.

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Table 4.4.1:

Summary of Experts’ evaluation of Hofstede’s dimensions for India

Hofstede’s

Dimension Synthesis of Experts’ views 1 Power

Distance

(Acceptance of

the unequal

distribution of

power by the

less powerful

members of

the society)

1) Relatively higher levels of acceptance of power

hierarchies, but the extent varied from region to region,

based on gender, level of literacy, social and ethnic groups

2) Acceptance of hierarchical power structures might help

entrepreneurial efficiency in certain regions.

3) There was a growing trend where the younger generation

of India did not prefer to go by power hierarchies and

believed in collaborative interactions both in social life

and at work which according to them increased

entrepreneurial efficiency 2 Collectivism

vs.

Individualism

1) Both existed and could lead to social networking

2) Collectivism borne out of sectarian reasons could be

disruptive and unsettling

3) Individualism practiced for sectarian reasons could also be

disruptive

4) Non disruptive collectivism could lead to positive

performance which was the landmark quality of trading

(Vaish) communities and certain ethnic and social groups

in India 3 Uncertainty

Avoidance

1) Lower levels of uncertainty avoidance – intensity varied

from region to region

2) Trading and business communities had low levels of

Uncertainty Avoidance (higher Risk-taking Propensity)

3) Majority of the Indians were economically and socially

backward and were forced to face uncertainties

4) Rural population was more tolerant to uncertainties while

people from urban areas had high Uncertainty Avoidance. 4 Masculinity vs.

Femininity

1) Both groups were present across various regions

2) Masculinity could be more dominant

5 Long term

(pragmatic)

orientation vs.

short term (or

normative)

orientation

Both present; level of occurrence based on literacy levels,

ethnicity, traditions and customs etc.

6 Indulgence vs.

Restraint

Mix of both indulgent and restrained social groups with the

level of acceptance varying across regions.

Social and economic backwardness restrains people from

being indulgent

Younger generation was found to be more indulgent

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According to Hofstede, the score available for Indulgence was only 26 (Fig. 4.2.1). It

indicated that majority of Indians exhibit ‘Restraint’. The experts also opined that

India had both indulgent and restrained social groups and this attribute varied across

regions. Many of them felt that it was also age based as the younger generation tend

to be more Indulgent. Again, economic and social backwardness were reasons for a

society to be restrained as they cannot afford to be indulgent even if they choose to do

so.

One important contribution by the experts was the proposal of an additional cultural

dimension beyond those promulgated by Hofstede, namely, ‘Ethnic Orientation’. The

ethnicity of an individual, according to them, created a distinct cultural identity as he

belongs to a certain community, race, minority social groups etc.

4.5 Discussion

The experts’ assessment of the validity of Hofstede’s cultural dimensions as

applicable to the Indian context converged fully on two aspects: Power Distance

(Acceptance of the unequal distribution of power by the less powerful members of the

society), and Masculinity (vs. Femininity). Both agreed that majority of the Indians

acknowledged and abided by power hierarchies. Both masculinity and femininity

existed in the Indian society with masculinity being the relatively dominant attribute.

However these convergences were without prejudice to the experts’ view that the

level of adherence varied significantly across various regions of the country and were

also dependent on factors like literacy levels, religious influences, and traditions.

The experts’ had divergent views on the remaining four dimensions of Hofstede.

According to them, Indian society had a mix of both long term (pragmatic) and short

term (normative) orientations. Hofstede’s assessment indicated that Indians were

predominantly pragmatic and long term. On collectivism and individualism they

asked the question as to what type of collectivism. They were of the opinion that both

collectivism and individualism existed in India in different formats. There was

collectivism which united people together for socially beneficial processes. A good

example of this type of collectivism was that practiced by the business communities

of India. There was individualism which led to positive leadership which many times

complements positive collectivism. On the other hand there were instances of people

61

being constrained to join groups which were ordained by triggers borne out of

religious, caste social or political reasons. The experts’ inputs helped to bring out

several manifestations of both collectivism and individualism (Fig.4.5.1).

Majority of the Indians, being economically backward, did not have the means to

protect themselves under various measures to avoid uncertainties. They were

constrained to face all the unexpected vagaries of nature and unpalatable economic

consequences. But it was also true that continuing exposure to uncertainties over and

again helped the Indian people build up an intrinsic immunity to unforeseen

calamities and hardships. This was different from the innate business risk appetite

(borne out of low levels of uncertainty avoidance) which many entrepreneurs in India

were endowed with and a large part of these came from the business communities

who were known for higher standards of entrepreneurship.

The fourth divergence was on Indulgent vs. Restraint orientations. Although the

Indian society was found to be characterised by restraint as proposed by Hofstede’s

studies, it was again not a dimension borne out of choice, at all times, stated the

experts. The high levels of economic and social backwardness of the vast majority of

people prevent them from being indulgent. Their life was more of a struggle against

different types of inequalities and they tended to be restrained as a matter of chance.

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Table 4.5.1:

Comparison of Hofstede’s Dimensions and the Experts’ views on Indian culture

Cultural

Dimension

Hofstede Vs. Indian Experts

Convergence Divergence

Acceptance of

unequal distribution

of power by the less

powerful members

of the society

Relatively

higher level of

acceptance

Level of acceptance varied across the country

Lower level of acceptance by the younger

generation

Collectivism vs.

Individualism

Both co-exist in

India

Level of adherence not the same across

various regions of India and it varied across

regions and communities.

Existence of both disruptive and disruptive

collectivism as well as disruptive and non

disruptive individualism

Uncertainty

Avoidance

Lower level of

uncertainty

avoidance

Level of Uncertainty Avoidance varied

across regions.

For majority of Indians uncertainties were

facts of life due to social and economic

backwardness; they didn’t have a choice or

capability to avoid it.

Thus people in rural areas had lower levels

of Uncertainty Avoidance whereas those in

urban areas had a higher level of Uncertainty

Avoidance

From an entrepreneur perspective his risk-

taking propensity was to be looked at.

Masculinity vs.

Femininity

Both were

present

The level of adherence varying across

regions and also communities

People in the northern regions of India

showed more of masculine features thank

those in the southern regions

Pragmatic vs.

Normative

orientation

NIL Both existed. Varied across regions and

communities based on literacy levels,

religious influences, and traditions

Indulgence vs.

Restraint

NIL Both existed. Many communities showed

more penchant for Indulgent behaviours

The level of Restraint or indulgence was also

based of economic and social reasons

Ethnic Orientation NIL A significant attribute which also varied

across regions. The cultural identity caused

by social or community associations gave a

unique behavioural and performance

characteristic to the people

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As discussed earlier in Chapter 2, many researchers have brought out the close

relationship between culture and entrepreneurship on the one hand and that between

culture and economic development on the other (Naude, 2013; Hofstede & Bond

(1988); Thomas & Mueller, 2000; Weiss 1988; Maysami and Goby 1998). So the

various cultural dimensions promulgated by Hofstede et al and now by the experts

have a great significance in the study of micro, small and medium entrepreneurship.

The significant contribution of this study is the identification that there could be a

seventh dimension in the Indian context beyond what Hofstede et al had proposed,

namely, ‘Ethnic Orientation’. Every community or caste (or religion) based

association could have an overwhelming influence on the grooming of its members.

This is mainly due to the cultural influences that the practices, conventions or belief

systems these associations could instil in human beings, controlling and deciding

upon their behavioural patterns. One of the best examples of these cultural instincts

could be seen in the Vaish communities of India.

The other interesting findings from the study are related to Collectivism (vs.

Individualism), Uncertainty Avoidance and Indulgence (vs. Restraint). There were

four situations for Collectivism vs. Individualism and three situations each for

Uncertainty Avoidance and Indulgence vs. Restraint as illustrated in Fig. 4.4.1, Fig.

4.4.2 and Fig. 4.4.3. In an ideal situation there could be high collectivism or high

individualism or a mix of the two. Here based on inputs received from the Indian

experts there could be least eight different possibilities of occurrences which are (see

Fig: 4.4.1):

1) High occurrence of Non Disruptive Collectivism

2) High occurrence of Disruptive Collectivism

3) High occurrence of Non Disruptive Individualism

4) High occurrence of Disruptive Individualism

5) Combination of Non Disruptive Collectivism and Non Disruptive

Individualism

6) Combination of Disruptive Collectivism and Disruptive Individualism

7) Combination of Non Disruptive Collectivism and Disruptive Individualism

8) Combination of Disruptive Collectivism Non Disruptive Individualism

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Fig. 4.4.1: Possibilities for Collectivism vs. Individualism

In the case of Uncertainty Avoidance three possibilities are suggested (Fig: 4.4.2):

1) Low Uncertainty Avoidance by Choice (Risk-taking Appetite or Propensity)

2) High Uncertainty Avoidance by Choice

3) Low Uncertainty Avoidance due to economic and social backwardness

Fig. 4.4.2: Possibilities for Uncertainty Avoidance

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In the case of Indulgence and Restraint, experts point out three possibilities (Fig:

4.4.3):

1) High Indulgence (and low restraint) by choice

2) High Restraint (and low indulgence) by choice

3) High Restraint (and low indulgence) due to economic and social backwardness

Fig. 4.4.3: Possibilities for Indulgence vs. Restraint

Fig. 4.4.4: Ethnic Orientations

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The essence of the experts’ inputs brought out the fact that any cross cultural study

might need to consider ethnicity or ethnic orientations to fully understand an

individual’s behavioural and attitudinal aspects. Ethnic means ‘connected with or

belonging to a nation, race or people that share a cultural tradition’ and ethnicity

means ‘the fact of belonging to a particular race (Oxford Advanced Learner’s

Dictionary, 2015). Ethnicity in India, according to Manor (1996), could be based on

identities grounded on religion, language, tribal and also Aryan and Dravidian

orientations. Ethnicity associated with a group means that the members are aware of

a common origin and culture and there are a set of connections and regular

interactions among the members ‘sharing common national background or migratory

experiences (Aldrich & Waldinger, 1990, p. 112) Every ethnic group has their own

intrinsic social and cultural inheritance which shapes an individual’s behaviour and

attitudes. Ethnic Orientation, therefore, could influence an individual’s attitude to

entrepreneurship as well just like any other cultural dimension. There were three

major components for Ethnic Orientation (see Fig. 4.4.4): they were Religion or Caste

based, Trading practices based, or based on any other minority sub groups like

displaced, refugee, scheduled tribes etc.

4.6 Outcome from the Exploratory Study

The exploratory study brought out various cultural dimensions relevant for Indian

society and which could possibly influence entrepreneurial performance in the MSME

space. The baseline for this study was Hofstede’s six dimensions and the latest value

of the scores as provided by Hofstede. His study of national cultures was based on a

global and scientific approach or a neutral observer’s perspective (Etic approach).

Here an attempt is made to moderate these views though an Emic approach using the

inputs received from forty Indian experts who provided native insider perspectives.

The experts concluded that people’s adherence to Hofstede’s cultural attributes were

dependent on the various regional factors like historic and cultural backgrounds,

literacy levels, level of political and social awareness, and social orientations as

summarised in Table 4.5.1. Their views highly converged on two of the dimensions,

namely, Power Distance, and Masculinity and Femininity subject to the fact that the

67

levels of acceptance varied across regions and also based on literacy, economic and

social aspects.

The experts’ views were divergent in the case of the other four dimensions, namely,

Long Term or Pragmatic (vs. Short Term) orientation, Collectivism (vs.

Individualism), Uncertainty Avoidance and Indulgence (vs. Restraint). Both

Collectivism and Individualism could also be disruptive and unsettling due to

sectarian, doctrine and group based loyalties. In the case of Uncertainty Avoidance,

Indians generally had low levels. One reason for this was due to economic and social

reasons in which case they were destined to face uncertainties year after year and soon

got used to these uncertainties. This was without prejudice to the fact that there was

an emerging group of business entrepreneurs in India who were endowed with low

levels of uncertainties which led to higher business and entrepreneurial risk-taking

propensity. Similarly it was found that that Indulgence could be a choice only for the

people who could afford it and there was a majority of people in India who could not

afford Indulgence as a matter of choice. Restraint behaviour was found predominant

in the country as most of the population was constrained to be so due to economic and

social backwardness.

The study also brought out a seventh cultural dimension called Ethnic Orientation

which was significant in the Indian context. The social, race or caste based

orientation primarily gave a specific social and cultural identity for the people. The

study supported the view that having an ethnic identity borne out of religion, race,

language or minority groups led to superior performance.

4.7 Revisions in the hypotheses based on the outcome from the exploratory and

validation phase

Three main outcomes of the exploratory study affected the statements of hypotheses.

One was the identification of the seventh dimension, namely, Ethnic Orientation,

which needed to be included in the set of cultural dimensions considered for this

research. Secondly, from the perspective of entrepreneurial performance Risk-taking

Propensity had to be considered instead of Uncertainty Avoidance which seems to be

super set as it is seen now. The incorporation of these outcomes would thus revise the

hypotheses.

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The revised hypotheses are listed below with revisions highlighted in bold print.

Table 4.7.1: Revised Hypotheses

Hypotheses Set-01

H0.1 There is zero variance in the performance of MSME entrepreneurs across the

states, location types, enterprise types, business types and across the various

hierarchical interactions between state, location, enterprise, and business types

Hypotheses Set-02

H0.2.1 There is zero variance in Power Distance of entrepreneurs managing

MSMEs across the two states,

the two locations, the two

enterprise types, the two

business types and across the

various hierarchical

interactions between state,

location, enterprise, and

business types

H0.2.2 There is zero variance in Risk-taking propensity

H0.2.3 There is zero variance in Collectivism

H0.2.4 There is zero variance in Masculinity

H0.2.5 There is zero variance in Pragmatic Orientation

H0.2.6 There is zero variance in Indulgence scores of

H0.2.7 There is zero variance in Ethnic Orientation

Hypotheses Set-03

H0.3.1 Power Distance dimension does not influence MSME

entrepreneurs across the

various hierarchical

combinations of location

types, enterprise types, and

business types in Kerala

H0.3.2 Risk-taking propensity dimension

H0.3.3 Collectivism dimension

H0.3.4 Masculinity dimension

H0.3.5 Pragmatic Orientation dimension

H0.3.6 Indulgence dimension

H0.3.7 Ethnic Orientation

H0.3.11 Power Distance does not influence MSME

entrepreneurs across the

various hierarchical

combinations of location,

enterprise,

and business types in

Maharashtra

H0.3.12 Risk-taking propensity

H0.3.13 Collectivism

H0.3.14 Masculinity

H0.3.15 Pragmatic Orientation

H0.3.16 Indulgence

H0.3.17 Ethnic Orientation

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4.8 Summary

The validation of the six dimensional framework of Hofstede has led to the

conclusion that these cultural attributes are applicable for India except that the

degrees of adherence vary across various states of the country. The study also

came up with a seventh cultural dimension called ethnic orientation.

In Chapter 5, an attempt is made to discuss how these hypotheses and attributes

would be tested in an empirical setting. In the process the development of the

questionnaire, choice of regions for the study, pilot testing and sample survey

based empirical investigations are all discussed.