Cul

ture

and

Bus

ines

s

J. N

. Hoo

ker

Car

negi

e M

ello

n U

nive

rsity

Uni

vers

ity o

f Pitt

sbur

ghF

ebru

ary

2006

A P

opul

ar V

iew

of C

ultu

re

•C

ultu

re is

all

abou

t foo

d, la

ngua

ge, d

ress

, cus

tom

s,

holid

ays,

etc

.

–W

hat i

f all

Chi

nese

ate

Sau

erbr

aten

and

Spä

tzle

–ra

ther

than

jiăo

zi a

nd b

āo

zi?

•It

wou

ld b

e th

e sa

me

cultu

re!!

The

Wes

tern

Vie

w o

f Cul

ture

•C

ultu

res

diffe

r in

lang

uage

, cui

sine

, etiq

uette

, etc

.

•B

ut w

e ar

e al

l bas

ical

ly th

e sa

me

insi

de.

•A

ppar

ent d

iffer

ence

s ar

e du

e to

leve

ls o

f dev

elop

men

t.–

The

re is

a s

ingl

e pa

th o

f de

velo

pmen

t tow

ard

a ra

tiona

l lif

esty

le.

–T

he W

est i

s ob

viou

sly

ahea

d,

whe

nce

the

dist

inct

ion

of

“dev

elop

ed”

and

“dev

elop

ing”

co

untr

ies.

•I m

ake

no s

uch

assu

mpt

ions

.

Cul

tura

l Ice

berg

•C

ultu

re d

eter

min

es o

ur d

eepe

st a

ssum

ptio

ns, m

ost o

f

whi

ch w

e no

t eve

n aw

are.

–Li

ke a

n ic

eber

g, c

ultu

re li

es m

ostly

ben

eath

the

surf

ace.

Lang

uage

Cui

sine

Dre

ss, h

airs

tyle

Ove

rt r

elig

ion

Con

cept

of

auth

ority

Con

cept

s

of s

pace

and

time

Gui

lt vs

.

sham

e

Rul

e-ba

sed

vs.

rela

tions

hip-

base

d

Apo

lloni

an

vs.

Dio

nysi

anU

nive

rsal

izin

g

ratio

nalit

y?

Man

agem

ent

of in

form

atio

n

Str

ess

man

agem

ent

Cov

ert r

elig

ion

Fun

dam

enta

l

conc

eptio

n of

real

ity

Pop

cul

ture

Cul

tura

l Eco

syst

ems

•C

ultu

res

are

like

ecos

yste

ms

in s

ever

al w

ays.

–T

hey

are

syst

ems

of m

utua

lly s

uppo

rtin

g el

emen

ts.

–O

ne is

not

“be

tter”

tha

n an

othe

r.

Cul

tura

l Eco

syst

ems

–T

hey

have

com

mon

ele

men

ts, b

ut d

iffer

non

ethe

less

.

–M

any

can

coex

ist o

n th

e sa

me

plan

et.

–M

onoc

ultu

re is

a b

ad id

ea.

The

Wor

ld is

Wes

tern

izin

g?

•C

apita

list m

arke

t eco

nom

ies

are

spre

adin

g, a

nd c

ultu

re

is p

rofo

undl

y sh

aped

by

how

peo

ple

mak

e a

livin

g.

Sha

ngha

iLo

ndon

Riy

adh

The

Wor

ld is

Wes

tern

izin

g?

•T

he h

isto

rical

wea

lth a

nd p

ower

of t

he W

est

attr

acts

elit

es a

roun

d th

e w

orld

.

–T

hey

spea

k E

nglis

h, a

dopt

Wes

tern

way

s, s

end

child

ren

to W

este

rn s

choo

ls, c

ultiv

ate

Wes

tern

conn

ectio

ns, e

tc.

The

Wor

ld is

Wes

tern

izin

g?

•G

loba

l mar

ket a

nd c

omm

unic

atio

ns h

omog

eniz

e

the

wor

ld.

The

Wor

ld is

Wes

tern

izin

g?

•Y

outh

cul

ture

is th

e sa

me

ever

ywhe

re (

mov

ies,

mus

ic,

snea

kers

, etc

.).

The

Wor

ld is

Wes

tern

izin

g?

•T

he w

orld

look

s m

ore

and

mor

e

Wes

tern

–S

kysc

rape

rs, t

raffi

c ja

ms,

hig

h te

ch

–S

urfe

it of

con

sum

er g

oods

–P

ollu

tion,

ove

rcon

sum

ptio

n of

reso

urce

s.

Teip

ei 1

01 T

ower

The

Wor

ld is

Wes

tern

izin

g?

•P

eopl

e te

nd to

exa

gger

ate

the

exte

nt to

whi

ch th

e w

orld

is

Wes

tern

izin

g.

–W

este

rner

s do

it…

•B

ecau

se th

ey a

re u

nive

rsal

ists

and

wan

t to

belie

ve th

at e

very

one

is

basi

cally

the

sam

e in

side

.

–O

ther

s do

it…

•B

ecau

se th

ey w

hat t

o em

phas

ize

the

exte

nt to

whi

ch th

ey a

re

“dev

elop

ed.”

Pet

rona

s To

wer

s,

Kua

la L

umpu

r

Not

so

Wes

tern

Afte

r A

ll

•N

on-W

este

rn c

ultu

res

are

resi

stin

g W

este

rn c

ultu

ral

hege

mon

y (S

amue

l Hun

tingt

on).

–C

hina

.

–Le

e K

uan

Yew

of S

inga

pore

(H

arry

Lee

at C

ambr

idge

).

–Is

lam

ic w

orld

.

Not

so

Wes

tern

Afte

r A

ll

•P

eopl

e w

ant t

he b

aubl

es a

nd b

angl

es o

f the

Wes

t but

may

not

wan

t the

cul

ture

.

Not

so

Wes

tern

Afte

r A

ll

•T

he m

edia

and

inte

rnet

can

act

ually

str

engt

hen

regi

onal

diffe

renc

es.

–It

is e

asy

to ta

ilor

new

s, w

eb s

ites

to m

arke

t seg

men

ts.

–U

.S. r

egio

nal d

iffer

ence

s ar

e gr

eate

r no

w th

an e

ver.

Not

so

Wes

tern

Afte

r A

ll

•“Y

outh

cul

ture

” di

sapp

ears

at a

bout

age

26.

–M

any

of to

day’

s ca

pita

lists

in C

hina

spe

nt th

eir

yout

h in

the

Red

Gua

rd, t

he y

outh

mov

emen

t of t

he d

ay.

Bus

ines

s is

Bus

ines

s?

•M

ust k

now

rul

es o

f etiq

uette

onl

y to

prev

ent i

rrel

evan

t cul

tura

l fee

lings

from

intr

udin

g on

an

esse

ntia

l

busi

ness

mat

ter.

–B

usin

ess

beha

vior

is g

over

ned

by

univ

ersa

l law

s of

sup

ply

and

dem

and,

as d

escr

ibed

in n

eocl

assi

cal

econ

omic

s.

Bus

ines

s Is

n’t J

ust B

usin

ess

•B

ut e

cono

mic

law

s ra

dica

lly

unde

rdet

erm

ine

econ

omic

beha

vior

. –

It is

like

law

s of

che

mis

try

in

cook

ing,

or

law

s of

phy

sics

in

traf

fic.

–N

eocl

assi

cal e

cono

mic

s is

base

d on

ass

umpt

ion

of u

tility

-

max

imiz

ing,

ato

mis

tic e

cono

mic

agen

ts.

Bus

ines

s Is

n’t J

ust B

usin

ess

•E

cono

mic

s sa

ys li

ttle

to e

xpla

in…

–

dem

and

(and

ther

efor

e m

arke

ting)

,

–pr

open

sity

to w

ork,

–so

cial

def

initi

on o

f wor

k (I

ndia

n co

ffee

stan

d),

–cl

ass-

defin

ed r

oles

,

–fir

m lo

yalty

,

–fla

t vs.

hie

rarc

hica

l or

gani

zatio

ns,

–st

atus

and

ren

egot

iabi

lity

of c

ontr

acts

,

–co

nven

tions

for

nego

tiatio

n.

Just

to c

larif

y…

•T

o de

scrib

e a

cultu

re is

no

t to

st

ereo

type

the

indi

vidu

als

in it

.–

Eve

ry c

ultu

re h

as th

e fu

ll ra

nge

of p

erso

nalit

y ty

pes.

–T

hey

diffe

r in

how

per

sona

litie

s fit

into

a s

yste

m.

•A

lthou

gh m

ost c

ultu

res

are

influ

ence

d by

the

Wes

t…–

… n

ot a

s m

uch

as p

eopl

e sa

y.

–…

and

not

in th

e w

ays

mos

t peo

ple

thin

k.

–I f

ocus

on

wha

t is

indi

geno

us a

bout

a c

ultu

re, n

ot w

hat i

s W

este

rn a

bout

it.

•I t

alk

fran

kly,

in a

clin

ical

way

, abo

ut h

ow

cultu

res

wor

k.

–A

s in

a m

edic

al s

choo

l cou

rse.

–T

his

is n

ot

appr

opria

te o

utsi

de

the

clas

sroo

m.`Ju

st to

cla

rify…

•I m

ake

no

jud

gm

ents

abo

ut w

hich

cul

ture

s ar

e

“bet

ter.

”

Cul

tura

l Cla

ssifi

catio

n

•O

ne in

trod

uctio

n to

cul

tura

l diff

eren

ce is

thro

ugh

clas

sifi

cati

on

of c

ultu

res.

–T

here

are

at l

east

500

0 cu

lture

s in

the

wor

ld.

–E

ach

has

a lo

gic

its o

wn.

–C

ultu

ral c

lass

ifica

tion

does

n’t c

aptu

re th

is.

–B

ut it

is a

sta

rt.

Rel

atio

nshi

p-ba

sed

Rul

e-ba

sed

Hig

h po

wer

dis

tanc

eLo

w p

ower

dis

tanc

e

Sha

me-

base

dG

uilt-

base

d

Hig

h co

ntex

tLo

w c

onte

xt

Pol

ychr

onic

Mon

ochr

onic

Pol

iteR

ude

Cor

rupt

ion

as

brib

ery

Cor

rupt

ion

as

chea

ting

Fem

inin

eM

ascu

line

Unc

erta

inty

avo

idin

gU

ncer

tain

ty to

lera

nt

Rel

atio

nshi

ps v

s. R

ules

•B

usin

ess

mee

tings

•B

usin

ess

deal

s

–P

erso

nal t

rust

vs.

con

trac

ts &

law

•T

raffi

c be

havi

or

–N

egtia

tion

vs. r

egul

atio

n

•D

ealin

g w

ith s

tres

s

–F

amily

& fr

iend

s vs

. tec

hnol

ogy

& e

ngin

eerin

g

Rel

atio

nshi

ps v

s. R

ules

•R

ule-

base

d:

–N

orth

ern

Eur

ope,

US

A, C

anad

a, A

ustr

alia

–In

clud

ing

Ger

man

y, C

zech

Rep

ublic

•R

elat

ions

hip-

base

d:

–A

sia,

Mid

dle

Eas

t, A

fric

a, L

atin

Am

eric

a

Pow

er D

ista

nce

•H

igh

po

wer

dis

tan

ce =

hie

rarc

hy, a

utho

rity

are

acce

pted

•L

ow

po

wer

dis

tan

ce =

equ

ality

pre

ferr

ed

•P

aren

ts–

Aut

horit

aria

n vs

. len

ient

–P

rote

ctio

n vs

. ind

epen

dent

.

•G

over

nmen

t–

Per

sona

l aut

horit

y vs

. leg

al a

utho

rity.

Pow

er D

ista

nce

•H

ighe

st p

ower

dis

tanc

e (a

ccor

ding

to H

ofst

ede)

:

–M

alay

sia,

Cen

tral

Am

eric

a (e

xcep

t Cos

t Ric

a),

Phi

lippi

nes,

Mex

ico,

Ven

ezue

la, A

rab

coun

trie

s,

Indo

nesi

a, In

dia,

Wes

t Afr

ica,

Yug

osla

via,

Sin

gapo

re, B

razi

l, H

ong

Kon

g

–G

erm

any:

hig

h by

Eur

opea

n st

anda

rds

Pow

er D

ista

nce

•Lo

wes

t pow

er d

ista

nce:

–A

ustr

ia (

?), D

enm

ark,

New

Zea

land

, Ire

land

,

Sw

eden

, Nor

way

, Fin

land

, Sw

itzer

land

, U.K

.

(bus

ines

s on

ly),

Ger

man

y, A

ustr

alia

(bu

sine

ss o

nly)

,

Net

herla

nds,

Can

ada

(bus

ines

s on

ly),

US

A

(bus

ines

s on

ly)

–C

zech

Rep

ublic

Sha

me

vs. G

uilt

•S

ham

e-b

ased

= b

ehav

ior

is r

egul

ated

by

pers

onal

sup

ervi

sion

•G

uilt

-bas

ed =

beh

avio

r is

reg

ulat

ed b

y gu

ilt.

•E

mpl

oyee

sup

ervi

sion

–C

onst

ant v

s. o

ccas

iona

l

•S

ecur

ity

–P

erso

nal p

rese

nce

vs. l

aws

Sha

me

vs. G

uilt

•S

ham

e ba

sed:

–S

ame

as r

elat

ions

hip-

base

d.

•G

uilt-

base

d:

–S

ame

as r

ule-

base

d

–G

erm

any:

par

ticul

arly

ext

rem

e ca

se

Con

text

•H

igh

-co

nte

xt =

info

rmat

ion

abou

t wha

t to

do is

impl

icit

•L

ow

-co

nte

xt =

info

rmat

ion

abou

t wha

t to

do is

spel

led

out

•S

igns

& in

stru

ctio

ns.

•P

erso

nnel

man

agem

ent

–P

erso

nal d

ecis

ion

vs. c

ompa

ny p

olic

y

Con

text

•H

igh

cont

ext:

–Ja

pan,

Chi

na, M

exic

o, e

tc.

•Lo

w c

onte

xt:

–U

SA

, nor

ther

n E

urop

e, e

tc.

–G

erm

any

and

Cze

ch R

epub

lic

Tim

e

•P

oly

chro

nic

= p

eopl

e do

man

y th

ings

at o

nce.

•M

on

och

ron

ic =

peo

ple

do o

ne th

ing

at a

tim

e.

•Q

ueue

s

•A

ppoi

ntm

ents

and

pun

ctua

lity

•M

obile

pho

nes

Tim

e

•P

olyc

hron

ic

–In

dia,

muc

h of

Afr

ica,

Lat

in A

mer

ica,

sou

ther

n

Eur

ope,

Mid

dle

Eas

t

•M

onoc

hron

ic

–U

SA

, Can

ada,

nor

ther

n E

urop

e

–G

erm

any

(ext

rem

e ca

se),

Cze

ch R

epub

lic

(som

ewha

t)

Cou

rtes

y

•In

a p

olit

e cu

lture

, peo

ple

are

cour

teou

s to

asso

ciat

es a

nd d

efer

entia

l to

supe

riors

.

–B

ut r

uden

ess

to s

tran

gers

may

be

tole

rate

d.

•In

a r

ud

ecu

lture

, peo

ple

are

mor

e in

tere

sted

in

bein

g rig

ht th

an b

eing

nic

e.

–B

ut c

ourt

esy

to s

tran

gers

may

be

requ

ired.

•S

avin

g fa

ce v

s. in

-you

r-fa

ce.

Cou

rtes

y

•C

ourt

eous

:

–M

alay

sia,

Jap

an, K

orea

, Mex

ico

•R

ude:

–Is

rael

, Aus

tral

ia, U

SA

, muc

h of

Eur

ope

–G

erm

any,

Cze

ch R

epub

lic

Cor

rupt

ion

•C

orru

ptio

n as

bri

ber

y

–S

hort

cut

to r

elat

ions

hip

build

ing.

•C

orru

ptio

n as

ch

eati

ng

.

–V

iola

tion

of r

ules

.

•B

usin

ess

deal

ings

and

hiri

ng

–N

epot

ism

& c

rony

ism

vs.

tran

spar

ency

.

Cor

rupt

ion

•B

riber

y in

rel

atio

nshi

p-ba

sed

coun

trie

s (e

ndem

ic):

–M

uch

of A

fric

a, e

ast a

nd s

outh

Asi

a, M

iddl

e E

ast

•B

riber

y in

rul

e-ba

sed

coun

trie

s (s

yste

m

brea

kdow

n):

–R

ussi

a, E

aste

rn E

urop

e (C

zech

Rep

. les

s so

)

•C

heat

ing

in r

ue-b

ased

cou

ntrie

s (e

ndem

ic):

–U

SA

, sou

ther

n E

urop

e

Mas

culin

e vs

. Fem

inin

e

•M

ascu

line:

–T

ough

, agg

ress

ive,

am

bitio

us, m

artia

l val

ues.

–C

ompe

titiv

e.

–M

en ta

ke c

harg

e.

•F

emin

ine:

–C

oope

ratio

n, r

eluc

tanc

e to

exc

el.

–M

en &

wom

en’s

rol

es m

ore

sim

ilar.

Mas

culin

e vs

. Fem

inin

e

•F

emin

ine

(acc

ordi

ng to

Hof

sted

e):

–S

cand

inav

ia, w

este

rn S

lavi

c co

untr

ies,

Tha

iland

,

som

e La

tin A

mer

ican

cou

ntrie

s

•M

ascu

line:

–Ja

pan,

Aus

tria

, Sw

itzer

land

, Ire

land

, Jam

aica

, U.K

.,

Ger

man

y, P

hilip

pine

s, I

ndia

, Ara

b co

untr

ies,

som

e

Latin

Am

eric

an c

ount

ries

Unc

erta

inty

•U

ncer

tain

ty a

void

ing:

–P

refe

r fa

mili

ar, p

redi

ctab

le s

urro

undi

ngs.

–D

ysfu

nctio

nal b

urea

ucra

cy s

erve

s as

ritu

al.

–R

isk-

aver

se in

bus

ines

s

•U

ncer

tain

ty to

lera

nt:

–W

illin

g to

take

ris

ks.

–E

ntre

pren

euria

l in

busi

ness

.

Unc

erta

inty

•U

ncer

tain

ty a

void

ing

(acc

ordi

ng to

Hof

sted

e):

–G

reec

e, P

ortu

gal,

Latin

Am

eric

a, B

elgi

um, S

lavi

c

coun

trie

s, F

ranc

e

–C

zech

rep

ublic

, Ger

man

y (t

o so

me

exte

nt)

•U

ncer

tain

ty to

lera

nt:

–S

inga

pore

, Jam

aica

, Sca

ndin

avia

(?)

, Hon

g K

ong,

Irel

and,

Mal

aysi

a (?

), U

.K.,

US

A

Fra

uens

kirc

he a

nd R

atha

us in

Mun

ich

(Mün

nche

n)

Mar

ienp

latz

in M

unic

h

Clo

ckw

ork

in

Rat

haus

Cen

sore

d

Eng

lish

Gar

den,

Mun

ich

Okt

ober

fest

, Mun

ich

Sch

loß

Neu

schw

anst

ein,

Bav

aria

(B

aier

n)

Med

ieva

l fes

tival

, Bav

aria

Kön

igss

ee, B

avar

ia

Züg

spitz

e, n

ear

Gar

mis

ch-P

arte

nkirc

hen

Mal

a S

tran

a, P

ragu

e (P

raha

)

Vie

w fr

om P

ragu

e C

astle

Pra

gue

Cas

tle

Cha

rles

Brid

ge,

Pra

gue

Ast

rono

mic

al

cloc

k, P

ragu

e

Fra

nz K

afka

’s

hous

e, P

ragu

e