...significant differences in opinion found among different countries' opinions regarding business ethics. There were many tests and samples done in South Africa, Turkey, Israel, USA, Western Australia that were compared to more recent studies done in Jamaica, and the West Indies. Researchers compared the countries' cultures using Hofstede's four dimensions of National culture: power distance, collectivist vs individualist, femininity vs masculinity, and uncertain avoidance. The researchers then gathered employee attitudes towards business ethics from a sample of people in each country. Some examples of things on the questionnaire are “The only moral of business is making money” or “I view sick days as vacation days that I deserve” etc. The results suggested that the people in Jamaica and West Indies had similar views on business ethics to those living in Western Australia. Taking it a step further, they found that both Australia and Jamaica scored moderately on power distance and on masculine culture. USA culture received a score similar to the Australian culture on all four of Hofstede's dimensions, yet Jamaica's attitudes of business ethics were extremely different towards the attitudes of those in USA. This shows that Hofstede's dimensions of national culture doesn't include the attitudes towards business ethics. The Turkish and Israeli respondents feel more strongly than the Jamaican respondents that businesses are exempt from the common moral actions a person would behave with...
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...Hofstede’s Cultural Dimensions US vs. India by Edward A. Molnar January 19, 2013 Abstract This article acknowledges the six dimensions of Hofstede’s theory of cultural dimensions, and defines five of them for a comparison between the United States and India. This article shows for the most part, the definitions of Hofstede’s cultural dimensions are correct, but the article did identify some ambiguities while making the comparisons. Finally, future areas of possible research were identified that would assist in the removal of the ambiguities. Hofstede’s Cultural Dimensions US vs. India Geert Hofstede’s theory of cultural dimensions was a result of an analysis of a world-wide survey of employee values by IBM in the 1960’s and 1970’s. This theory describes the effects of a society’s culture on the values of that culture’s members and how those values relate to behavior. This is accomplished by using a structure resulting from factor analysis (Hofstede, 2011). This theory has been used as an example for several fields, particularly in cross-cultural psychology (Hofstede, 2011). Geert Hofstede’s original cultural dimensions theory had four dimensions from which cultural values could be analyzed. These four dimensions were: (a) individualism versus collectivism (IDV); (b) uncertainty avoidance (UAI); (c) power distance (PDI); (d) masculinity versus femininity (MAS). While Hofstede was performing research in Hong Kong he added the fifth dimension, long-term...
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... clear to both parties the new venture is alost certain to get into trouble. He says that “such fundamental goal disparitires oftern go unrecognized or remain taboo.”1 It is for this very reason that joint ventures often fail. Hofstede’s five levels of cultural dimensions shed light on the differences of foreign investment. Semenov analyzed the differences in economic governance among 18 developed countries Western countries and proved direct links between systems of governance and Hofstede’s original four cultures value dimensions of Power Distance, Uncertainty Avoidance, Individualism and Masculinity. Kogut and Singh in the article have found a way to measure cultural distance between countries and a correlation of investment. It showed that for instance the more culturally distant countries from the US the less their investment into the US. It is evident that the...
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...Hofstede's Dimensions of Culture Geert H. Hofstede was born on October 2, 1928 in Haarlem, the Netherlands. He received his M.Sc. from the Delft Institute of Technology in 1953, his Ph.D. (cum laude) from Groningen University in 1967. Hofstede is most well known for his work on four dimensions of cultural variability, commonly referred to as "Hofstede's Dimensions." These include: Uncertainty Avoidance, Power Distance, Masculinity-Femininity, Individualism-Collectivism, and Long-Term/Short Term Orientation. These dimensions were arrived in his 1980 publication, "Culture's consequences: International differences in work-related values." The study took existing survey data (sample size of 116,000) collected from a multinational corporation (IBM). The result was a score in each of the dimensions for 40 different countries. During 1978-83, the Dutch cultural anthropologist Geert Hofstede conducted detailed interviews with hundreds of IBM employees in 53 countries. Through standard statistical analysis of fairly large data sets, he was able to determine patterns of similarities and differences among the replies. From this data analysis, he formulated his theory that world cultures vary along consistent, fundamental dimensions. Since his subjects were constrained to one multinational corporation's world-wide employees, and thus to one company culture, he ascribed their differences to the effects of their national cultures. (One weakness is that he maintained that each country...
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...Journal of Comparative International Management 2009, Vol. 12, no.2, 73-89 ©2009 Management futures Printed in canada Cross-cultural Communication and Multicultural Team Performance: A German and American Comparison by Steven W. Congden University of Hartford, U.S.A. Alexei V. Matveev College of Staten Island – CUNY, U.S.A David E. Desplaces College of Charleston, U.S.A. This study builds on work by Matveev & Nelson (2004) which investigated the relationship between cross-cultural communication competence and multicultural team performance using American and Russian managers. This study examines the impact of national culture on German and American subjects. While a relationship between cross-cultural communication competence and multicultural team performance was found, it did not differ by overall national culture. Of the four dimensions of cross-cultural communication competence, only Cultural Empathy was found to be significantly different between Germans and Americans. No differences were found for the dimensions of Interpersonal Skills, Team Effectiveness, and Cultural Uncertainty. 1. Introduction Worldwide intercultural cooperation drives corporate growth and development across the globe resulting in a heightened demand for a qualified but diverse workforce. researchers have documented that the successful performance of multicultural teams is a vital and contributing factor to organizational success (Jackson, may, & Whitney, 1995; Snow, Snell, davison, & hambrick...
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...Claremont Colleges Scholarship @ Claremont CMC Senior Theses CMC Student Scholarship 2011 The Effect of Culture on the Implementation of International Financial Reporting Standards Mitchell A. Skotarczyk Claremont McKenna College Recommended Citation Skotarczyk, Mitchell A., "The Effect of Culture on the Implementation of International Financial Reporting Standards" (2011). CMC Senior Theses. Paper 165. http://scholarship.claremont.edu/cmc_theses/165 This Open Access Senior Thesis is brought to you by Scholarship@Claremont. It has been accepted for inclusion in this collection by an authorized administrator. For more information, please contact scholarship@cuc.claremont.edu. CLAREMONT McKENNA COLLEGE THE EFFECT OF CULTURE ON THE IMPLEMENTATION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS SUBMITTED TO PROFESSOR MARC MASSOUD AND DEAN GREGORY HESS BY MITCHELL SKOTARCZYK FOR SENIOR THESIS SPRING 2011 2 Table of Contents I. Introduction…………………….……………………………………………………………….4 II. Literature Summary………………………………………...………………...….……………..5 III. IFRS……………………...……………………………………………………..……………11 IV. Carve-outs…………………………………………………………………………………....18 V. Culture and Accounting………………………………………………………………………25 VI. Conclusion………………………………………………………………...…………………30 Appendix………………………………………………………………………………………...32 Bibliography……………………………………………………………………………………..37 3 I. Introduction As globalization increases at a blistering pace, more...
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...CHAPTER 4 SOCIAL AND CULTURAL ENVIRONMENTS SUMMARY Culture, a society’s “programming of the mind,” has both a pervasive and changing influence on each national market environment. Global marketers must recognize the influence of culture and be prepared to either respond to it or change it. Human behavior is a function of a person’s own unique personality and that person’s interaction with the collective forces of the particular society and culture in which he or she has lived. In particular, attitudes, values, and beliefs can vary significantly from country to country. Also, differences pertaining to religion, aesthetics, dietary customs, and language and communication can affect local reaction to brands or products as well as the ability of company personnel to function effectively in different cultures. A number of concepts and theoretical frameworks provide insights into these and other cultural issues. Cultures can be classified as high- or low-context; communication and negotiation styles can differ from country to country. Hofstede’s social value typology sheds light on national cultures in terms of power distance, individualism vs. collectivism, masculinity vs. femininity, uncertainty avoidance, and long- versus short-term orientation. By understanding the self-reference criterion, global marketers can overcome the unconscious tendency for perceptual blockage and distortion. Rogers’ classic study on the diffusion of innovations helps explain how products...
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...SOME EMPIRICAL EVIDENCE Dustin Chambers and Susan Hamer Department of Economics and Finance, Salisbury University, Salisbury, USA ABSTRACT Using Hofstede’s cultural data set, this paper examines the impact of cultural characteristics on a nation’s economic performance. Using a two-step estimation procedure, we first estimate a panel growth regression and obtain estimates of each nation’s fixed effects, which reflect idiosyncratic differences in growth performance. In the second step, we regress the fixed effects on invariant cultural and institutional variables. Our estimation results suggest that individuality and tolerance for uncertainty are the most important cultural factors in explaining nation-specific growth performance. Furthermore, our findings suggest that political and property rights play a major role in determining idiosyncratic growth. Keywords: culture, economic growth, freedom, property rights JEL classification numbers: C23, O1 I. INTRODUCTION Using several measures of culture, we seek to determine the effect of culture on a nation’s economic performance. Among the cultural characteristics that we examine, individuality and uncertainty avoidance are found to be the most important in predicting economic growth that is not otherwise explained by economic fundamentals. Moreover, we discover that these cultural characteristics indirectly influence growth by shaping the legal framework of the nations in our study. On an intuitive level, these findings are not...
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...ignorant about the country and its’ business relations and lack thereof. This paper will focus on research, data analysis and identifying Russia’s major elements and dimensions of culture, aspects and dimensions integrated by locals conducting business, contrast to that of US culture and businesses and implications for US businesses that wish to conduct business in Russia. References will be provided through discussion of interviews from actual residents from within different districts throughout Russia, as well as work attire, women in the workforce, examine Russian self-employed, women’s experiences, communication, interpretations, expectations of gender employment and various social schemes. This should prove to broaden a basic understanding of foreign and cross border relationships and assist with an understanding of business practices in Russia. What are the major elements and dimensions of culture in this region? Ethics When discussing Russia and their corporate ethics contrast to that of the United States there are quite Russian ethics are quite different and separate in terms of being an individual. Self grooming is a must. Corporate leaders are expected to maintain all standard pertaining to grooming. An individual’s appearance such as haircuts and certain lengths, cleansed nails and dress. Russians believe in first impressions so much that will make a deal based upon their first meeting with you. This is developed and mentored...
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...Topic 1: Analyze the role of cultural factors that can create comparative advantage for a company. Give some relevant examples. CONTENT Facing with the diversity of the market as well as the establishment of more and more enterprises, managers’ pressure is weighed on how to make their firms different and attract more customers compared to other companies. In the opinion of Michael Porter, entrepreneurs who only focus on two objectives of growth and product diversification strategy does not guarantee long-term success for business. It is important for any business organization to build a sustainable comparative strength. Since then the concept of “Comparative advantage” was born with the sense that the specific value of the enterprise will help businesses reach high performance and always be unforgettable. There are many factors that create comparative advantages for business and one of the basic elements and also plays the important role is the cultural factors. It is supposed that culture is the promotion of the ability and the fullest expression of human nature. Hence, culture exists in any human activity such as economy, politic, society, communication, behavior, or in the innermost thoughts. Each nation brings its own different cultural values, creating the cultural diversity. This has caused not only difficulties for multinational companies to be able to adapt but also an opportunity for businesses to learn, thus make the particular policies that create comparative...
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...CHAPTER 2 ENRIRONMENTAL INFLUENCE ON ACCOUNTING DEVELOPMENT 1 2.1 Introduction In international accounting research, environmental influence is the key to understanding one country’s accounting system. "To a large extent, accounting is a product of its environment. That is, it is shaped by, reflects, and reinforces particular characteristics unique to its national environment" (Radebaugh and Gray 1997). From the late 1960s, researchers in international accounting have tried to categorize countries according to a series of criteria, which have been developed on a deductive or conductive basis. These criteria tried to explain the reasons for accounting differences between countries; they aimed to describe and compare different systems with each other in an efficient way. There are several advantages to categorize and analyze the differences among countries: First, it promotes improved understanding of the complex realities of accounting practices, as well as the factors that shape a country’s accounting regulations; Second, it provides useful information for solving some of the important accounting problems that exist in the world. For example, it can help policymakers assess the prospects and problems of international harmonization; Third, it can assist in the training of accountants and auditors who operate internationally; And finally, it can enable a developing country to better understand the available and appropriate types of financial...
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...CHAPTER 3 Group Member Diversity CHAPTER OUTLINE Heterogeneous Groups Personality Dimensions Personality Theory Implications of Personality Dimensions Cultural Dimensions Individualism–Collectivism Power Distance Uncertainty Avoidance Masculine–Feminine High Context–Low Context Monochronic Time–Polychronic Time Barriers to Cultural Understanding Gender Dimensions Generational Dimensions Balanced Diversity GroupWork: Personality Preferences GroupAssessment: Identifying Cultural Dialectics ISBN: 0-536-56665-8 63 Working in Groups: Communication Principles and Strategies, Fourth Edition, by Isa N. Engleberg and Dianna R. Wynn. Published by Allyn & Bacon. Copyright © 2007 by Pearson Education, Inc. 64 Part I Basic Group Concepts HETEROGENEOUS GROUPS When you read or hear the word diversity, you may think about race or about people from other countries. The concept of diversity, however, involves much more than country of origin, skin color, or ethnic heritage. When discussing group communication, we use the term diversity in its most general sense—the quality of being different. The American Heritage Dictionary of the English Language defines diverse as “made up of distinct characteristics, qualities, or elements.”1 The homogeneous–heterogeneous dialectic is particularly applicable to the study of group membership. As we note in Chapter 1, the prefix homo comes from the Greek language and means “same” or “similar”; hetero means “different.” Thus, a homogeneous...
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...CAVUMC05_124-157hr 10/10/07 1:41 PM Page 124 c h a p t e r 5 The Cultural Environment of International Business Learning Objectives In this chapter, you will learn about: 1. The challenge of crossing cultural boundaries 2. The meaning of culture: foundation concepts 3. Why culture matters in international business 4. National, professional, and corporate culture 5. Interpretations of culture 6. Key dimensions of culture 7. Language as a key dimension of culture 8. Culture and contemporary issues 9. Managerial guidelines for crosscultural success > American Football . . . in Europe? There are few things more representative of U.S. culture than American football. It is an extravaganza, complete with exciting halftime shows and peppy cheerleaders. The game exemplifies national pride. The national anthem is played, flags are unfurled, and uniformed players charge up and down the field like an army in the throes of often violent conflict. The teams’ huddles divide the game into small planning sessions for the next play. In the United States, the National Football League (NFL) oversees the sport and, like any successful business, wants to score in new markets. The NFL first tackled Europe in 1991, with plans to establish American football there. After years of failed attempts, NFL Europe emerged as six teams, five of which were based in Germany (such as the Berlin Thunder, the Cologne Centurions, and the Hamburg Sea Devils). Earlier teams established in Spain...
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...INDEX Introduction The challenge of crossing cultural boundaries The meaning of culture: foundation concepts Why culture matters in international business National, professional, and corporate culture Interpretations of culture Key dimensions of culture Language as a key dimension of culture Culture and contemporary issues Managerial guidelines for cross-cultural success Page 1 to 1 Page 1 to 5 Page 5 to 6 Page 7 to 9 Page 9 to 9 Page 10 to 14 Page 14 to 17 Page 17 to 19 Page 19 to 21 Page 21 to 23 1 Introduction There are few things more representative of U.S. culture than American football. It is an extravaganza, complete with exciting halftime shows and peppy cheerleaders. The game exemplifies national pride. The national anthem is played, flags are unfurled, and uniformed players charge up and down the field like an army in the throes of often violent conflict. The teams’ huddles divide the game into small planning sessions for the next play. In the United States, the National Football League (NFL) oversees the sport and, like any successful business, wants to score in new markets. The NFL first tackled Europe in 1991, with plans to establish American football there. After years of failed attempts, NFL Europe emerged as six teams, five of which were based in Germany (such as the Berlin Thunder, the Cologne Centurions, and the Hamburg Sea Devils). Earlier teams established in Spain had failed. Why did American football triumph in Germany but fail in Spain? An...
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...3122-prelims.qxd 10/29/03 2:20 PM Page i International Human Resource Management 3122-prelims.qxd 10/29/03 2:20 PM Page ii 3122-prelims.qxd 10/29/03 2:20 PM Page iii second edition International Human Resource Management edited by A n n e - Wi l H a r z i n g J o r i s Va n R u y s s e v e l d t SAGE Publications London l Thousand Oaks l New Delhi 3122-prelims.qxd 10/29/03 2:20 PM Page iv © Anne-Wil Harzing and Joris van Ruysseveldt, 2004 First published 2004 Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted under the Copyright, Designs and Patents Act, 1988, this publication may be reproduced, stored or transmitted in any form, or by any means, only with the prior permission in writing of the publishers, or in the case of reprographic reproduction, in accordance with the terms of licences issued by the Copyright Licensing Agency. Enquiries concerning reproduction outside those terms should be sent to the publishers. SAGE Publications Ltd 1 Olivers Yard London EC1Y 1SP SAGE Publications Inc 2455 Teller Road Thousand Oaks, California 91320 SAGE Publications India Pvt Ltd B-42, Panchsheel Enclave Post Box 4109 New Delhi 100 017 British Library Cataloguing in Publication data A catalogue record for this book is available from the British Library ISBN 0 7619 4039 1 ISBN 0 7619 4040 5 (pbk) Library of Congress Control Number...
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