Download chapter 2

CHAPTER 2
CULTURE
Chapter Objectives




To define and demonstrate the effect of culture’s various dimensions on business
To examine ways in which cultural knowledge can be acquired and individuals and organizations prepared
for cross-cultural interaction
To illustrate ways in which cultural risk poses a challenge to the effective conduct of business
communications and transactions
To suggest ways in which businesses act as change agents in the diverse cultural environments in which
they operate
Opening Vignette
Crossing Cultures: Balancing the Global with the Local
Summary:
This vignette tells how MTV has developed an effective strategy for a global market. While the core of its
productions is still American, 70 percent of its content is local imagery. The company also encourages
local production of shows that can have appeal in other countries by the use of financial incentives. MTV
therefore reflects the local culture while also influencing the local culture.
Chapter Outline
I. CULTURE DEFINED: AN INTEGRATED SYSTEM OF LEARNED BEHAVIOR PATTERNS THAT
ARE CHARACTERISTIC OF THE MEMBERS OF ANY GIVEN SOCIETY (PAGE 37)
A. Acculturation—adjusting and adapting to a specific culture other than one’s own
B. High-context cultures—the listener and the speaker rely on a common understanding of the
context and what is not being said can carry more meaning than what is said
C. Low-context cultures—most of the information is contained explicitly in the words spoken
D. International business acts as a change agent by introducing new products, ideas, and practices
Focus on Politics
Protecting Mozzarella
Summary:
This article reports on efforts by the European Union (EU) to protect product names by geographic
indication. So Mozzarella cheese would have to be cheese from Mozzarella, not a type of cheese. Some
countries want to take this notion even further and protect culturally specific names as applying only to
products produced in their countries. Many claim that this is just another form of protectionism.
II. The Elements of Culture
A. Language
1. Verbal
a. Roles of language capability in international business
1) Aids in information gathering and evaluation
2) Access to local society
3) Company communications
4) Interpretation of contexts that may influence business operations
b. Local assistance is required to deal with local languages
c. Backtranslation –translating a foreign language version back to the original
language by a different person than the one who made the first translation
2. Nonverbal language
a.
b.
c.
d.
e.
B. Religion
1.
2.
Time
Space
Material possessions
Friendship patterns
Business agreements
May affect attitudes toward entrepreneurship, consumption and social organization
Christianity (more than 2 billion people)
a. Catholicism—questions making money
b. Protestantism—emphasizes value of work and accumulation of wealth
c. Holidays such as Christmas affect business
3. Islam (more than 1.2 billion people)
a. Supports entrepreneurship
b. Discourages exploitation
c. Fatalistic—nothing happens without the will of Allah
d. Attitude toward women affects business
e. Restriction on the consumption of certain products (alcohol)
4. Hinduism (860 million people)
a. A way of life predicate on the caste system affecting workforce issues
b. Family is emphasized
5. Buddhism (360 million)
a. Offspring of Hinduism but without caste system
b. Life is seen as filled with suffering
c. Seek nirvana—a spiritual state marked by an absence of desire
d. Emphasis on spiritual achievement, not worldly goods
6. Confucianism (150 million)
a. More of a code of conduct stressing loyalty to group and authority
b. Relationships must be developed to have business ties
C. Values and Attitudes
1. Values are shared beliefs or group norms internalized by individuals
2. Attitudes are evaluations of alternatives based on values
D. Manners and Customs
1. Especially important in negotiations
2. Gift giving customs vary by culture
3. Focus groups can help avoid problems arising from differing manners and customs
E. Material Elements
1. Material culture refers to the results of technology and is directly related to how a
society organizes its economic activity
2. Economic infrastructure—transportation, energy, and communications
3. Social infrastructure—housing, health, and educationally systems
4. Financial and marketing infrastructure—provides facilitating agencies for operation
in a market
F. Aesthetics
1. What is considered of good taste, as expressed in the arts and symbolism of colors,
form, and music
2. Differences in the use of sex, meaning of colors and symbols
G. Education
1. Literacy
2. Educational emphasis varies by culture
H. Social Institutions
1. Family patterns affect consumption and obligations
2. Social stratification—division of a particular population into classes
3. Reference groups—provide values and attitudes that influence behavior
4. Roles of managers and subordinates is determined by cultural social organizations
III. Sources of Cultural Knowledge
A. Objective or factual information is gained from others through communication, research, and
education
B. Experiential knowledge is gained by being involved in a culture
IV. Cultural Analysis
A. Researchers often use checklists and models (Figure 2.3, page 57)
B. A Model of Cross-Cultural Behavior by Sheth and Sethi
C. Natural
self-
reference criterion by James A. Lee –the unconscious reference to one’s own cultural values
D. An analytical approach to reduce the influence of cultural bias
1. Define the problem or goal in terms of domestic cultural traits, habits, or norms
2. Define the problem or goal in terms of the foreign cultural traits, habits, or morns.
Make no value judgments
3. Isolate the self-reference criterion influence in the problem, and examine it carefully to
see how it complicates the problem
4. Redefine the problem without the self-reference criterion influence, and solve for the
optimum-goal situation
E. Ethnocentricism—the tendency to consider one’s own culture as superior to others
V. The Training Challenge
A. Foreign language training
B. International business skills
C. Cultural understanding and sensitivity
1. culture-specific information
2. general cultural information
3. self-specific information
D. Cross-Cultural Training Methods (Figure 2.5, page 62)
Focus On e-Business
Online Cultural Training
Summary:
Online cultural training can supplement classroom training and is useful when time is at a premium. Webbased training includes:
1. Detailed Scenarios
2. Gradual Delivery
3. Support
4. Relevant Exercises
5. Online Discussions
VI. Making Culture Work for Business Success
A. Embrace local culture
B. Build relationships
C. Employ locals to gain cultural knowledge
D. Help employees understand you
E. Adapt products and processes to local markets
F. Coordinate by region
Questions for Discussion
1. Comment on the assumption, "If people are serious about doing business with you,
they will speak English."
The question is best answered by a describing an incident that occurred at an international conference. The
topic of languages arose and an American businessman, who fully expected to hear English as the answer,
asked a small group of people what they thought to be the language of international business. Some were,
indeed, of the same opinion until a Japanese gentleman brought up his view. "To me," he said, "the most
important language of international business is my customer's language."