3 Culture & Business

Vocabulary flashcards covering key cultural concepts, frameworks, and business implications from Week 3 lecture notes on Global Strategy and Communication.

Culture

Collective programming of the mind that distinguishes members of one group from another; includes language, religion, social structure, education, etc.

Characteristics of Culture – Learned

Culture is acquired through learning and experience, not inherited biologically.

Characteristics of Culture – Shared

Cultural norms and values are common to members of a group, not unique to single individuals.

Characteristics of Culture – Transgenerational

Culture is cumulative and passed from one generation to the next.

Characteristics of Culture – Symbolic

Culture relies on the human capacity to use symbols—one thing representing another.

Characteristics of Culture – Patterned

Culture has structure and integration; change in one part affects other parts.

Characteristics of Culture – Adaptive

Culture allows humans to adjust to changing environments, unlike purely genetic adaptation.

Cross-Cultural Literacy

Understanding how cultural differences influence business practices, communication, and behaviour.

Ethnocentrism

Self-centred mentality that one’s own culture is superior to others.

Self-Reference Criterion

Unconscious habit of using one’s own culture to evaluate unfamiliar environments.

Determinants of Culture

Religion, social structure, language, education, political philosophy, and economic philosophy.

Religion (as a cultural determinant)

Major manifestation of culture influencing festivals, routines, and symbolic values relevant to business.

Social Structure

Basic social organisation of a society, including individualism vs. collectivism and social stratification.

Social Stratification

Division of society into strata based on family background, occupation, and income.

Social Mobility

Extent to which individuals can move out of the strata into which they are born.

Caste System

Social position determined by family; little or no possibility of movement.

Class System

Social position can change through achievements or luck.

Language Barriers

Communication obstacles arising when parties lack a shared fluent language.

Lingua Franca

A common language (often English) adopted for international business communication.

Corporate Language

Official or unofficial language chosen by an MNE to facilitate internal and external communication.

Education (as a cultural determinant)

National educational level that shapes competitive advantage and can reinforce or reduce stratification.

Hofstede’s Cultural Dimensions

Framework describing national cultures using six dimensions: power distance, uncertainty avoidance, individualism–collectivism, masculinity–femininity, time orientation, indulgence–restraint.

Power Distance

Extent to which less-powerful members accept unequal power distribution.

High Power Distance

People obey superiors blindly; organisations are centralised and tall.

Low Power Distance

Flatter, decentralised structures; subordinates are highly qualified and expect consultation.

Uncertainty Avoidance

Degree to which people feel threatened by ambiguity and create rules to avoid it.

High Uncertainty Avoidance Traits

Conflict avoidance, intolerance of deviance, respect for laws, reliance on experts.

Individualism

Tendency to prioritise personal goals and self-reliance; value hard work and freedom.

Collectivism

Emphasis on group goals, loyalty, and harmony; individuals belong to groups for mutual support.

Masculinity

Cultural preference for achievement, assertiveness, money, and material success.

Femininity

Cultural preference for caring, quality of life, cooperation, and work–life balance.

Time Orientation

Extent to which a society focuses on long-term future versus short-term present and past.

Short-Term Orientation

Focus on quick results, respect for traditions, little saving for the future.

Long-Term Orientation

Emphasis on perseverance, thrift, adapting traditions, and achieving future outcomes.

GLOBE Study

Nine-dimension framework analysing leadership, organisational behaviour, and societal practices.

World Values Survey

Research project mapping cultures along Traditional–Secular-Rational and Survival–Self-Expression values.

Cultural Intelligence (CQ)

Ability to understand and adapt to new cultures.

CQ Phase 1 – Awareness

Recognising one’s own cultural programming and appreciating others’ perspectives.

CQ Phase 2 – Knowledge

Identifying symbols, rituals, and taboos in other cultures—cross-cultural literacy.

CQ Phase 3 – Skills

Applying awareness and knowledge through effective cross-cultural practice.

MNE as Engine of Cultural Change

Multinational enterprises can introduce new ideas, products, and management styles that alter host cultures.

Six Rules of Thumb Overseas

Be prepared; slow down; establish trust; value language; respect differences; accept no culture is superior.

Global Strategy Implication

Firms must tailor strategies to cultural similarities and differences across markets.

Indulgence vs. Restraint

Hofstede dimension not covered in detail; contrasts gratification of needs with suppression by social norms.