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Causes of cultural differences and change

INTERNATIONAL CULTURAL AND SOCIAL ENVIRONMENTS

Affect of Cultures on Business Practices

Causes of cultural differences and change:

Cultural value systems are set early in life and are difficult to change. By the age of ten most children
have their basic value system in place, such as;
• evil vs good
• dirty vs clean
• ugly vs beautiful
• unnatural vs natural
• abnormal vs normal
• paradoxical vs logical
• irrational vs rational

Culture is transmitted by various patterns:

– from parent to child
– from teacher to pupil
– from social leader to follower
– from one age peer to another

Change in culture may come through

– choice or imposition
– contact with other cultures
Isolation tends to stabilize a culture and contact tends to create cultural borrowing
Language and religion also affect cultural stability

Behavioral practices affecting businesses:

In any culture a variety of behavioral practices affect the way businesses are conducted. Some of the
common behavioral practices affecting businesses are given below;
• group affiliations
• role of competence
• attitudes towards gender, age & family
• importance of occupation
• communications
– language, context
– silent language
• attitudes towards work
• other behavioral differences
• degree of self-reliance
• preference for autocratic vs consultative management
• attitudes towards self-determination vs fatalism

Some management styles:

Scholars like Herzberg have researched cultures of countries around the world and have categorized
countries according to business practices;
• Theory “X” - workers are generally irresponsible, unwilling to work and must be persuaded to
perform their obligations
• Theory “Y” - given an appropriate work environment and in absence of exceptional disincentives,
workers are dedicated to their tasks, are generally self motivated
• Decision making
• USA - authoritarian
• Western Europe - limited co-determination
• Japan - with consensus
• Latin America – paternalistic
• Corporate emphasis
• North America - short-term profit
• Western Europe - employee & corporate interests
• Japan - close cooperation between govt. & business
• Latin America - highly govt. regulated

Hofstede’s dimensions of national culture:

• Power distance - extent to which power in organizations is unequally distributed
– high power distance - centralized tall, pyramid organizations, people at lower strata with lower
qualifications (Philippines, Mexico, South Korea, India)
– Low power distance - less centralized, flatter organizations, people at lower strata with higher
qualifications (Austria)
• Uncertainty avoidance - extent to which society feels threatened by uncertain or ambiguous
situations
– high uncertainty avoidance - structured organizational activities, more written rules, less risk
taking by managers, lower labor turnover, less ambitious employees (Germany, Japan & Spain)
– low uncertainty avoidance (Denmark & Great Britain)
• Individualism - Collectivism
– individualism - tendency of people to look after themselves and their immediate family (normally
high in wealthy countries)

– collectivism - people belong to groups or collectives and look after each other in exchange for
loyalty (normally high in poor countries)
• Masculinity - Femininity
– masculinity - dominant values of society are success, money, advancement (large-scale
enterprises and economic growth considered important, situations of higher job stress and
employees kept under higher degree of control - Japan)
– femininity - dominant values of society are caring for others and quality of life (greater
importance on cooperation, friendlier atmosphere, employment security, low job stress and
employees allowed considerable freedom - small scale enterprises and emphasis on conservation
of environment - more women hold higher level jobs - Norway)
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Culture is a human medium:

• there is not one aspect of human life that is not touched and altered by culture
• this means personality
• how people express themselves (including shows & emotions)
• the way they think
• how they walk
• how problems are solved
• how their cities are planned & laid-out
• how transportation systems function & are organized
• how economics & government systems work & are put together

Cultural influences on consumer behavior:

• Hierarchy of needs, which distorts demand across product categories.
• Culture based values, especially on individualistic or collective orientations, which influence
purchase behavior and decision process (individual vs family)
• Institutions which influence consumer behavior
• Influences through cultural variations in personal factors of consumer behavior, brand loyalty,
consumer involvement, perceived risk, cognitive style.

Level of context needed:

HIGH CONTEXT
• JAPANESE
• CHINESE
• GREEK
• ARABS
• SPANISH
• ITALIAN
• ENGLISH
• NORTH AMERICAN
• FRENCH
• SCANDINAVIAN
• GERMAN
LOW CONTEXT

Impact of national cultures on marketing
:
• Material culture & marketing
– types of products suitable for individual markets
– types of media available
– distribution systems / storage facilities
• Imperialism
– alien products are agents of change in host culture
• Language as a culture mirror
– most obvious difference between cultures
– English has large vocabulary of commercial & industrial words
– Eskimo has many words to describe snow
• Cultural events & marketing opportunities
– Eid, Christmas, Chinese New Year etc.
• Cultural sensitivities to products , colors etc.

Reconciliation of cultural differences by international marketer:


• Cultural awareness

– managers must be aware of what cultural differences are and how these differences would
influence basic functions of management
– managers must decide carefully whether and to what extent they should adopt home-country
practices to foreign environment
– international managers need to identify the roles that individuals play in process of cultural
change and in acceptance of change
– cultural elements which may resist change should be identified and understood before planning
any organizational change
– products, services and advertising should also fit needs and perceptions of host culture
• grouping countries together

• fitting needs to company position

– not all companies need to have same degree of cultural awareness
– the more a change upsets important cultural values, the more resistance it will face
– cost of change may exceed the benefits gained

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