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The Three Pillars of International IT

Strategy, Culture & National Development

Copyright © Karen Loch - All rights reserved

Strateg

y

Cu

lture

Natl D

ev

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Questions

z Does culture matter?

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Questions

z Does culture matter?

Business is Business

all over the world

Cultural differences

explain everything

Cultural differences

explain everything

Computer subculture

is the same all over the world

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What is Culture?

z … provides members with images of their basic concerns, principles, ethics, and bodies of manners, rituals, ideologies, strategies, and tactics of self-survival including certain notions of good deeds and bad, various forms of folklore and legends …

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What is Culture?

z … The way we give logic to the world begins at birth with the gestures, words, tone of voice, noises, colors, smells, and body contact we experience. . . . Our culture is what is familiar, recognizable, habitual. It is “what goes without saying.” Van Maanen & Laurent, The flow of cultures in Organizaition, Theory, and the multinational croproation, NY, 1993 by Ghoshal and Westney.

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Are there Types of CULTURE?

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Are there Types of CULTURE?

z Within national boundaries z Cultural attributes which cross boundaries

y Arab y Latin America

z Some nations have strong internal cultural differences y Canada (English and French)y India (14 official languages in India &

hundreds of dialects)

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Are there Types of CULTURE?

z Most nations have intra-regional differences y United States: Northeast, West, South y Germany

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Are there Types of CULTURE?

z Corporate culture y Proctor & Gamble y Microsoft y Michelin y Toyota

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Are there Types of CULTURE?

z Professional culturey Highly structured formal education y On-going professional activities y Cross over national cultures

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Can Culture be Managed?

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Is Culture an object or aProcess?

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Can Culture be Managed?

z Contrasting views of the Worldy Organization HAS culture

y Organization IS culture

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Descriptive Models of Cultural Difference or Similarity

z Hofstede’sz Hall’sz Cultural Contexts

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Dimensions ofNational Culture

z Hofstede’s dimensionsy Revering hierarchyy Individualism / collectivism y Taking care of business y Risk avoidance y Long term orientation

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HOFSTEDE’S STUDY

z 1980 modelz 116,000 questionnaires in 50 countries (plus 3

national groups) z Conducted over time -- 1968 & 1973 z One of the 1st empirical studies of culture in

organizationsz One of the 1st major surveys to substantiate

cultural dimensions z Defines national culture through 4 (5)

dimensions

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Revering Hierarchy:Israel 13 rank and class are less important

Germany 35

Netherlands 38

USA 40

Japan 54

France 68

Hong Kong 68

India 77

West Africa 77

Indonesia 78

China 80

Russia 95 rank and class are very important

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Individualism-Collectivism:USA 91 Highly individualistic

Netherlands 80

France 71

Germany 67

Israel 54

Russia 50

India 48

Japan 46

Hong Kong 25

China 20

West Africa 20

Indonesia 14 Highly collectivistic

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Taking Care of Business:Japan 95 Tough values

Germany 66

USA 62

Hong Kong 57

India 56

China 50

Israel 47

West Africa 46

Indonesia 46

France 43

Russia 40

Netherlands 14 Paternalistic values

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Risk Avoidance:Japan 92 Avoid risk

Russia 90

France 86

Israel 81

Germany 65

China 60

West Africa 54

Netherlands 53

Indonesia 48

USA 46

India 40

Hong Kong 29

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Long-term Orientation:China 118 future orientation

Hong Kong 96

Japan 80

India 61

Netherlands 44

Germany 31

France 30

USA 29

Indonesia 25

West Africa 16

Russia 10 past and/or present orientation

Israel N/A

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Cultural Difference:•Pakistan•Venezuela•Hong Kong•China•Japan•Brazil•Singapore•Spain•France

•Australia•India•Belgium•Italy

•Canada•UK•Sweden•Germany•USA•Netherlands

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Dimensions ofNational Culture

z Hall’s dimensions (1959, 1976)y Space

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Dimensions ofNational Culture

z Hall’s dimensions (1959, 1976)y Spacey Material Goods

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Dimensions ofNational Culture

z Hall’s dimensions (1959, 1976)y Spacey Material Goods y Friendship

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Dimensions ofNational Culture

z Hall’s dimensions (1959, 1976)y Spacey Material Goods y Friendship y Time

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Dimensions ofNational Culture

z Hall’s dimensions (1959, 1976)y Spacey Material Goods y Friendship y Time y Agreement

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High-context vs. Low context Communication

High Context(implicit)

JapaneseArabLatin

ChineseMediterraneanIndian

Low Context(explicit)

AmericanEnglish

German Scandinavian