chapter 1-3 brief summary ICC

hofstede

4 originals, 1980

1. power distance

2. uncertainty avoidance

3. individualism vs collectivism

4. masculinity vs femininity

added in 1991

5. long vs short term orientation

added in 2010

6. indulgence vs restraint

trompenaars

relationship between humans

1. universalism vs particularism

2. individualism vs communitarianism

3. neutral affective

4. specific vs diffuse

5. achievement vs ascription

how humans deal with time

6. sequential vs synchronic

how humans deal with environment

7. internal vs external control

edward hall

• high context culture: non-verbal, implicit messages, long-term relationships

• low context culture: verbal, explicit statements, short-term relationships

1. proxemics (use of space)

2. chronemics (use of time)

   1. monochronic vs polychronic

stereotypes vs prejudice

• stereotype: generalised belief about a group of people, positive or negative, putting people in boxes

• prejudice: negative attitude / feeling toward people based on their membership in a group, has an emotional, judgmental side

globalisation of world economy

1. migration and diasporas: movement of people across borders, formation of multicultural societies

2. info spread and digitalisation: internet, social media and digital platforms, enable people to adapt / engage to diverse cultures

3. consumer culture: dominance of global brands for consumers everywhere, standardisation of products / services offered in global market

4. local-global interactions: while global influences spread, local cultures adapt and re-interpret such influences, creating unique hybrid forms

characterisation of cultural hybridisation

• cultural syncretism: combining elements from different cultures, merging religious or spiritual practices

• language mixing: hybrid dialects

• creative innovation: new artistic, culinary, and technological innovations

• translational identities: individuals develop identities that embrace multiple cultural influences

GLOBE study

1. power distance

2. uncertainty avoidance

3. humane orientation

4. institutional collectivism

5. in-group collectivism

6. assertiveness

7. gender egalitarianism

8. future orientation

9. performance orientation

content highlight comparison

• hofstede: conceptual cultural understanding, inspiration for further research

• trompenaars: action-oriented, real-world situation, emphasis on resolving cultural conflict & dilemma, flexible

• hall: relationship & non-verbal aspects, findings in context dimension

• GLOBE: should-be value vs as-is practice, combine national & organisational culture

iceberg model

Charles Osgood

• percepta: visible dimension, 10% → symbol, behaviour, habit

• concepta: invisible dimension, 90% → belief, attitude, value

Edgar Schein

• artefacts: can be seen

• values: stated values and rules of behaviour

• basic assumptions: deeply integrated beliefs which are hard to recognise from outside

elements of concepta dimension

1. belief: personal opinion you just know is true for yourself, but you can’t prove it to everyone

2. attitude: how you feel about something specific → feelings and emotions are big here

3. norm: a rule for how people should act in certain situations → standard way of behaving

4. value: big, general idea of what’s good or important, not tied to a specific thing

5. fundamental assumption: the deepest layer → basic, shared ideas about how the world and people are

characteristics of cultural impacted organisational forms

• village market = low UA, low PD

• well-oiled machine = high UA, low PD

• family or tribe = low UA, high PD

• traditional bureaucracy = high UA, high PD

shannon-weaver communication model

1. sender

2. encoder

3. medium

4. decoder

5. destination

6. noise

4 sides model of communication

1. factual content

2. self revelation

3. relationship

4. appeal

paul watzlawick’s 5 axioms of communication

1. one cannot not communicate

2. content and relationship

3. punctuation

4. digital vs analog

5. symmetrical vs complementary

non-verbal communication

• paralinguistics: tone, pitch

• chronemics: use of time

• kinesics: facial expressions, gestures, posture

• oculesics: eye movement

• proxemics: intimacy, comfort, distance

• haptics: touching

• appearance

• chromatics: colour symbolic

• silence/no action

typology of intercultural training methods

1. cognitive: knowledge-oriented, facts, focus on cultural norms and values

2. affective: attitude-oriented, focus on self-awareness and managing emotion

3. behavioural: skill-oriented, train for real-life, active and hands on

3-dimensional company management model

1. normative: values and culture → mission and vision, corporate governance, sets identity

2. strategic: structure and strategy → define market approach, key systems

3. operational: actions and plans → set objectives, execution

what is an international company

1. eugene: quantitative → measurable, 25% of investments made abroad

2. dunning: simplified → practical, firm with assets abroad or parent firm in different country

3. pausenberger: qualitative → cultural / managerial, production elsewhere

key indicators of quantitative description

1. foreign country revenue ratio: % of total revenue that comes from foreign country

2. foreign employment ratio: % of total employees working abroad

3. transnationality index (TNI): average of foreign assets ratio, foreign sales ratio, foreign employment ratio

   1. TNI > 70% transnational

limitations of quantitative approaches

1. indicator selection

2. home country problems

3. small country effect

4. management practices

qualitative analysis

• normative: geographic identity, company culture, management mindset

• strategic: market development, organisation, decision-making

• operational: global value chain, IT, controlling system

EPRG model

• explains how mindset and values of management influence company’s internationalisation process

• ethnocentric: home country knows best

• polycentric: host country knows best

• regiocentric: coordinated by region

• geocentric: world-wide orientation

barlett and ghoshal

• implementer: low market importance, low competence level

• black hole: high market importance, low competence level

• contributor: low market importance, high competence level

• strategic driver: high market importance, high competence level