26-29 June 2013EURAM Istanbul - Dr Ursula Schinzel EURAM June 2013 Annual Conference of the European Academy of Management Why are People in Luxembourg Happy? Language as an Identifier of Culture in the Grand Duchy by Dr Ursula Schinzel

26-29 June 2013EURAM Istanbul - Dr Ursula Schinzel Research Question: The purposes of this study are: 1. to explain where Luxembourg fits in on Hofstede’s 7 dimensions of culture 2. to explain Luxembourg people’s high scores on the measure of happiness 2

26-29 June 2013EURAM Istanbul - Dr Ursula Schinzel Review of the Literature Review of the Literature Participant Observation (Primary Data) Participant Observation (Primary Data) Interviews (Primary Data) Interviews (Primary Data) Questionnaires (Primary Data) Questionnaires (Primary Data) Methods 3

26-29 June 2013EURAM Istanbul - Dr Ursula Schinzel Literature Review The era before Hofstede: The era before Hofstede: Maslow, Abraham Maslow, Abraham McClelland, David McClelland, David Herzberg, Frederick Herzberg, Frederick Rockeach, Milton Rockeach, Milton Hall, Edward Hall, Edward Kluckhohn, Florence and Strodtbeck, Fred Kluckhohn, Florence and Strodtbeck, Fred 4 The era after Hofstede: The era after Hofstede: Triandis, Harry Triandis, Harry Smith, Peter, B. Smith, Peter, B. Schwartz, Shalom Schwartz, Shalom Trompenaars, Fons & Hamden-Turner, Charles Trompenaars, Fons & Hamden-Turner, Charles De Mooij, Marieke De Mooij, Marieke Inglehart, Ronald Inglehart, Ronald The GLOBE, House, Robert; Hanges, Paul… The GLOBE, House, Robert; Hanges, Paul… Schein, Edgar Schein, Edgar Bond, Michael, Harris Bond, Michael, Harris Mintzberg, Henry Mintzberg, Henry Minkov, Michael Minkov, Michael Hofstede, Gert Jan Hofstede, Gert Jan McSweeney McSweeney The era besides Hofstede: The era besides Hofstede: Scholz, Christian; Böhm, Hans Scholz, Christian; Böhm, Hans Lewis, Richard D. Lewis, Richard D. Spizzo, Daniel Spizzo, Daniel The era beyond Hofstede: The era beyond Hofstede: Aaker, Jennifer Aaker, Jennifer Briley, Donnel Briley, Donnel Nakata, Cheryl Nakata, Cheryl Kirkman, Hong, Benet-Martínez, Leung, Hermans, Kempen…. Kirkman, Hong, Benet-Martínez, Leung, Hermans, Kempen….

26-29 June 2013EURAM Istanbul - Dr Ursula Schinzel What did he do? Born in the Netherlands in 1928 Born in the Netherlands in 1928 IBM HRM research in the 1960s IBM HRM research in the 1960s 116,000 questionnaires 116,000 questionnaires Identified 4 cultural dimensions, later added more: Identified 4 cultural dimensions, later added more: IDV/COLL, UAI, PDI, MAS/FEM, IDV/COLL, UAI, PDI, MAS/FEM, LTO, IVR, MON. LTO, IVR, MON. Dared to contradict Maslow, Herzberg, McClelland Dared to contradict Maslow, Herzberg, McClelland Brought cultural research from the US to Europe Brought cultural research from the US to Europe Emeritus Professor at Maastricht University Emeritus Professor at Maastricht University Start at 2:36 Start at 2:36 5 Geert Hofstede (1928- )

26-29 June 2013EURAM Istanbul - Dr Ursula Schinzel Hofstede’s Dimensions of Culture 6 Masculinity versus Femininity (MAS) Power Distance Index (PDI) Long-Term versus Short- Term Orientation(LTO) Indulgence versus Restraint (IVR) Uncertainty Avoidance (UAI ) Individualism versus Collectivism (IDV) Monumentalism (MON) Hofstede's Dimensions of Culture - Explained Easily : e_gdata_player

26-29 June 2013EURAM Istanbul - Dr Ursula Schinzel Luxembourg 7 Unitary parliamentary democracy and constitutional monarchy Unitary parliamentary democracy and constitutional monarchy Grand Duke: Henri Grand Duke: Henri Prime Minister: Jean-Claude Juncker Prime Minister: Jean-Claude Juncker Official languages: Luxembourgish, French, German Official languages: Luxembourgish, French, German Capital Luxembourg (90,000 inhabitants) Capital Luxembourg (90,000 inhabitants) Size: 2,586 km2 Size: 2,586 km2 Population total: 511,000 Population total: 511,000 Motto: “Mir wëlle bleiwe wat mir sinn” “We want to remain what we are” Motto: “Mir wëlle bleiwe wat mir sinn” “We want to remain what we are” Anthem: “Ons Heemecht” – “Our Homeland” Anthem: “Ons Heemecht” – “Our Homeland” Queen Mary II and Marie-Astrid

26-29 June 2013EURAM Istanbul - Dr Ursula Schinzel 8 Hypothesis 1: Native Luxembourgers scores on PDI, UAI, IDV, MAS, LTO, IVR, MON cultural dimensions are significantly different from the scores of non-Luxembourgers in Luxembourg Hypothesis 2: There are significant differences between Hofstede et al.’s PDI, UAI, IDV, MAS, LTO, IVR, MON cultural dimensions estimates for Luxembourg and the empirical values found in this study for Luxembourgers with Luxembourgish Nationality Hypothesis 3: Luxembourgers are happy because they Use their language as identifier, are highly uncertainty avoidant, are long-term oriented, have low power distance, are highly collectivist

26-29 June 2013EURAM Istanbul - Dr Ursula Schinzel Data Analysis: Participant Observation 9 HRone American Chamber of Commerce Chamber of Commerce and Sacred Heart University Luxembourg PaperJam Business Club European Commission Luxembourg prefers: Meeting in person; in a Hotel or Bank; over Cocktail with Champagne/ Lunch or Dinner LPRA – Luxembourg Professionals Recruiters Association Brasseries, Restaurants, Hotels, Bars. Femmes Leaders Luxembourg POG – Personnel Officer’s Group Libreria Italiana BEE SECURE Fairs ‘Foires’ University Luxbg

26-29 June 2013EURAM Istanbul - Dr Ursula Schinzel PDI = 35(mQVAL7 – mQVAL2) + 25(mQVAL23 – mQVAL26) + C (pd) PDI = 35(mQVAL7 – mQVAL2) + 25(mQVAL23 – mQVAL26) + C (pd) UAI = 40(m QVAL20 – mQVAL16) + 25(mQVAL24 – mQVAL27) + C (ua) UAI = 40(m QVAL20 – mQVAL16) + 25(mQVAL24 – mQVAL27) + C (ua) IDV = 35(mQVAL4 – mQVAL1) + 35(mQVAL9 – mQVAL6) + C (ic) IDV = 35(mQVAL4 – mQVAL1) + 35(mQVAL9 – mQVAL6) + C (ic) MAS = 35(mQVAL5 – mQVAL3) + 35(mQVAL08 – mQVAL10) + C (mf) MAS = 35(mQVAL5 – mQVAL3) + 35(mQVAL08 – mQVAL10) + C (mf) LTO = 40(mQVAL18 – mQVAL15) + 25(mQVAL28 – mQVAL25) + C (ls) LTO = 40(mQVAL18 – mQVAL15) + 25(mQVAL28 – mQVAL25) + C (ls) IVR = 35(mQVAL12 – mQVAL11) + 40(mQVAL19 – mQVAL17) + C (ir) IVR = 35(mQVAL12 – mQVAL11) + 40(mQVAL19 – mQVAL17) + C (ir) MON = 35(mQVAL14 – mQVAL13) + 25 (mQVAL22 – mQVAL21) + C (mo) MON = 35(mQVAL14 – mQVAL13) + 25 (mQVAL22 – mQVAL21) + C (mo) Culture Calculation Formulas 10

26-29 June 2013EURAM Istanbul - Dr Ursula Schinzel 11 Hofstede’s Cultural Dimension: Interviews’ and Questionnaires’ Results in Collaboration with Lindab Buildings Diekirch Table 1 Comparison Luxembourg – Luxembourg with Luxembourgish nationality (Lux. Nat.) – Hofstede’s estimates on Luxembourg (On a scale from 1-100, 1 being the lowest and 100 the highest score) LuxembourgLux. Nat.Hofstede’s estimates on Luxembourg PDI UAI IDV MAS LTO IVR MON1024-

26-29 June 2013EURAM Istanbul - Dr Ursula Schinzel 12 Cultural dimensions in Luxembourg - Lux. Nat. – France – Germany – UK – Belgium FR – Belgium NL – Italy – the Netherlands NL – China – USA – Japan (on a scale from 0-100) (0=lowest, 100=highest) Luxbg Lux. Nat. FranceGermanyUKBelgium FR Belgium NL ItalyNLChinaUSAJapan PDI UAI IDV MAS LTO IVR MON

26-29 June 2013EURAM Istanbul - Dr Ursula Schinzel 13 What is Logistic Regression? Dance/ / Dance/ / start at 1:02 Logistic regression allows prediction of group membership, for example, prediction of whether someone is a belly dancer based on gender, occupational category, preferred type of reading material and age. Logistic regression allows to evaluate the odds (the probability) of membership in the group of belly dancers based on the combination of values of the predictor variables, 25 year old female sports professor, teaching hip-hop and reading dance books

26-29 June 2013EURAM Istanbul - Dr Ursula Schinzel 14 Logistic Regression Definition: Logistic Regression is a statistical method used to model the relationship between a qualitative dependent variable – like for example ‘ happiness ’ – and a combination of independent variables – like for example ‘ taking risk ’, ‘ free time for life ’, ‘ level of education ’ ‘ job level manager or non- manager ’, ‘ state of health ’, ‘ religion ’ Logistic Regression is calculated in SPSS. SPSS is a computer program from IBM. SPSS means ‘Statistical Package for the Social Sciences’. Between 2009 and 2010 it was called PASW – ‘Predictive Analytics SoftWare’

26-29 June 2013EURAM Istanbul - Dr Ursula Schinzel 15 Logistic Regression Regression Coefficients Odds Ratios Taking Risk Free Time for Life Level of Education Contradict boss State of health Importance of Religion Constant Dependent Variable: Being happy

26-29 June 2013EURAM Istanbul - Dr Ursula Schinzel 16 Correlation Matrix * Significant at.05 Taking Risk Free Time for Life Level of Education Contradict boss State of health Importance of Religion Taking Risk Free Time for Life Level of Education Contradict boss State of health Importance of Religion

26-29 June 2013EURAM Istanbul - Dr Ursula Schinzel Constant For a person who takes risks+(0.931)x1 And who takes free time for himself/herself +(0.974)x1 Who has a high level of education+(-0.930)x1 Who dares to contradict the boss+(1.096)x1 Whose state of health is good+(1.485)x1 For whom religion is important+(0.677)x1 e =3.605 z = = = logit = p with z = with the constant p= p = 0.97 The probability for this person to be happy is This is a very high probability, near 1 17

26-29 June 2013EURAM Istanbul - Dr Ursula Schinzel Logistic Regression: The probability of Luxembourgers of being happy 18 Who does Not take risk Probability of being happy = 0.97 Person 1 Person 2 Probability of being happy = 0.94 Who takes free time for life for him/herself Who has a high level of education Who dares to contradict the boss Whose state of health is good For whom religion is important Who takes risk Who takes free time for life for him/herself Who has a high level of education Who dares to contradict the boss Who se state of health is good For whom religion is important

26-29 June 2013EURAM Istanbul - Dr Ursula Schinzel Correlation among all variables in SPSS 19 PDIUAIIDVMASLTOIVRMON HAPP Y GENDERAGE EDUCATION PDI - UAI IDV MAS.206* ** - LTO IVR **.272 **.042- MON ** ** - HAPPY **.293 **.001- GENDER AGE ** EDUCATION RANK..230**.210 * ** N=134; * p<.05; ** p<.001

26-29 June 2013EURAM Istanbul - Dr Ursula Schinzel Conclusion Conclusion Luxembourgers use their language as identifier use their language as identifier are highly uncertainty avoidant are highly uncertainty avoidant are long-term oriented are long-term oriented have low power distance have low power distance are highly collectivist are highly collectivist and are happy and are happy 20 HAPPY HIGH UNCERTAINTY AVOIDANCE LOW POWER DISTANCE HIGH COLLECTIVISM/ LOW INDIVIDUALISM LANGUAGE AS IDENTIFIER LONG-TERM ORIENTATION Hypothesis 1, 2, 3 are confirmed

26-29 June 2013EURAM Istanbul - Dr Ursula Schinzel 21 EXPLANATIONS PDI POWER DISTANCE INDICATOR PDI Luxembourg is low with 36/100 PDI Lux.Nat.: 29/100 China: 80 USA: 40 PDI (Power Distance Indicator) Luxembourg is small, hierarchy is not felt that much, boss and employees meet in the same sport clubs, supermarkets, bars, evening events

26-29 June 2013EURAM Istanbul - Dr Ursula Schinzel 22 EXPLANATIONS UAI UNCERTAINTY AVOIDANCE INDICATOR UAI Luxembourg is high 97/100 UAI Lux.Nat. 97/100 UK: 35 USA: 46 UAI Uncertain and unknown situations are avoided Secure, regulated, clear life without surprises, is preferred

26-29 June 2013EURAM Istanbul - Dr Ursula Schinzel 23 EXPLANATIONS IDV INDIVIDUALISM VERSUS COLLECTIVISM IDV Luxembourg is medium 51.5/100 IDV Lux.Nat. low IDV 34/100 USA: 91 Italy: 76 IDV Lux.Nat. are highly collective people preferring the well-being of the group and country

26-29 June 2013EURAM Istanbul - Dr Ursula Schinzel 24 EXPLANATIONS MAS MASCULINITY VERSUS FEMININITY MAS the characteristics of a masculine dominant country = competition and success, and those of a feminine dominant country = caring for others, quality of life, are equally distributed MAS Lux.Nat. is medium 54/100 Japan: 95 NL: 14 MAS Luxembourg is medium 47/100

26-29 June 2013EURAM Istanbul - Dr Ursula Schinzel 25 EXPLANATIONS LTO LONG-TERM ORIENTATION VERSUS SHORT-TERM ORIENTATION LTO Luxembourg is high 69/100 LTO Lux.Nat. is high 65/100 USA: 26 Germany: 83 LTO LTO is characterized by foreseen, and planned events and by perseverance and thrift

26-29 June 2013EURAM Istanbul - Dr Ursula Schinzel 26 EXPLANATIONS IVR INDULGENCE VERSUS RESTRAINT IVR In general: indulge in life, love profiting from the benefits of life, enjoy life IVR Luxembourg is medium 53.5/100 IVR Lux.Nat. is medium 55/100 China: 24 Italy: 30 USA: 68

26-29 June 2013EURAM Istanbul - Dr Ursula Schinzel 27 EXPLANATIONS MON MONUMENTALISM MON Luxembourg is low 10/100 MON Lux.Nat. is low 24/100 USA: 54.2 Japan: 4 MON Lux.Nat. love their national traditions and nationality, the Grand Ducal family, National Day, National Hymn and are living their national identity

26-29 June 2013EURAM Istanbul - Dr Ursula Schinzel 28 Language as Identifier Assure national identity World War 1 and 2 Discriminating factor for identification Nationality Access to advantages Importance

26-29 June 2013EURAM Istanbul - Dr Ursula Schinzel 29 Hofstede’s Dimensions of Culture in Luxembourg: Why are people in Luxembourg happy? Luxembourgers are happy because they: Use their language as identifier are highly uncertainty avoidant are long-term oriented have low power distance are highly collectivist Hypothesis 1, 2, 3 are confirmed

26-29 June 2013EURAM Istanbul - Dr Ursula Schinzel 30 Thank you for your attention