1. Cross cultural issues Dr Joan Harvey Joan.Harvey@ncl.ac.uk

3. What are we covering today?  Understanding of culture and cultural differences  Looking at two studies using a risk perspective  Driving  Management differences UK vs Zim  Asking the question: to what extent do attitudes, values amd behaviour vary across cultures?  Understanding of culture and cultural differences  Looking at two studies using a risk perspective  Driving  Management differences UK vs Zim  Asking the question: to what extent do attitudes, values amd behaviour vary across cultures?

4. Conceptualising risk issues and culture  Culture as shared values  “Collective programming of the mind that distinguishes the members of one group or category of people from others” [Hofstede and Hofstede, 1995]  Evident in rules, procedures, ‘how we do things around here’  Is learned  Risk taking, risk awareness  Risk avoidance, loss avoidance or uncertainty avoidance?  Culture as shared values  “Collective programming of the mind that distinguishes the members of one group or category of people from others” [Hofstede and Hofstede, 1995]  Evident in rules, procedures, ‘how we do things around here’  Is learned  Risk taking, risk awareness  Risk avoidance, loss avoidance or uncertainty avoidance?

6. Why is cross-culture important?  Costly IJV failures  Breakdown of expatriate assignments  Breakdown of collaborative assignments  Product failure, errors, poor quality  Failure to understand markets, business partners, consumers  Misunderstandings can cause aggression, etc.  Perception differences, including risk

7. How has culture been investigated and studied?  Social anthropology  International Business  Sociolinguistics and communications  Early work in Psychology was limited to things such as:  Differences in perception of values of coins amongst children from different ethnic bases  Linguistics: included class as well as cross-cultural differences  We will look at several writers today, including Hofstede, Trompenaars and Hall  Social anthropology  International Business  Sociolinguistics and communications  Early work in Psychology was limited to things such as:  Differences in perception of values of coins amongst children from different ethnic bases  Linguistics: included class as well as cross-cultural differences  We will look at several writers today, including Hofstede, Trompenaars and Hall

8. Geert Hofstede 1  Dutch social anthropologist  Obtained attitude data from IBM worldwide in late 1970s  Factor analysed and looked for factors which differentiated nationalities  Data on 50 countries, but only sufficient N for 40 in first book  Generally accepted as the most important now in cross-culture  But still limitations in his theory

9. Geert Hofstede: 5 factors  Masculinity femininity  Essentially the differentiation of sex-roles vs. both sex-roles considered the same  Ambition and desire to achieve vs. social concern and interpersonal relationships  Power distance  The tolerance of small or large power differentials Amount of power that can be wielded  Uncertainty avoidance  Tolerance of ambiguity, flexibility vs. preference for structure  Individualism- collectivism  Help and commitment to group versus high personal achievement  LT-ST orientation [added later in 1990s]  “Confucian dynamism” principles on both sides, primarily time- based

10. Geert Hofstede  All countries will have changed in last 30 years  Eastern Europe  Developing countries that are now developed  Political changes  Changes in technology and global communication  Migration of peoples  Are cross-cultural differences still as pronounced?  In-group vs out-group explanations  All countries will have changed in last 30 years  Eastern Europe  Developing countries that are now developed  Political changes  Changes in technology and global communication  Migration of peoples  Are cross-cultural differences still as pronounced?  In-group vs out-group explanations

11. Geert Hofstede  Issues  This study put cross-cultural differences into the mainstream rather than as “error variance” in other studies  Encouraged other theorists  Recent research has allowed many more countries to be mapped  Issues  This study put cross-cultural differences into the mainstream rather than as “error variance” in other studies  Encouraged other theorists  Recent research has allowed many more countries to be mapped

12. CountryPDUAIMFICLTO Germany3565666731 China80306620118 USA4046629129 Japan5492954680 UK35 668925 Finland3359266341 Austria1170795531 India7740564861 Hungary4682888050 Denmark1823167446 Czech Rep5774575813 Slovakia104511105238 Poland5072605531

13. Comments on these data  Short-terms orientation in e.g. UK clearly shown in how the financial markets behave- out to get the quick ‘buck’  Chinese and Japanese businesses into investment for the longer term, built on relationships and ‘family’ structures  Short-terms orientation in e.g. UK clearly shown in how the financial markets behave- out to get the quick ‘buck’  Chinese and Japanese businesses into investment for the longer term, built on relationships and ‘family’ structures

14. Examples of other theories: [a] Trompenaars 7 factors:  Universalism versus particularism  Work relationships mixed with personal ones  Individualism versus collectivism  Affective versus neutral culture  Specific versus diffuse relationships  Distinct relationships versus diffuse ones  Achieving versus ascribing status  Earned through achievement or recognised e.g. seniority/age  Perception of time  Sequential [monochronic] or parallel [polychronic]  Relating to nature

15. Example [b] GLOBAL project  Assertiveness  Future orientation  Gender egalitarianism  Humane orientation  Institutional collectivism  In-group collectivism  Performance orientation  Power distance  Uncertainty avoidance

16. Two more factors that are interrelated.  Time perception  Polychronic or cyclical [e.g. southern Europe, China, Japan]  Monochronic [e.g. northern Europe, US]  Context [Edward Hall]  High means that perception of what is said is taken in context, including NVCs  Low means words are interpreted literally

17. Other dimensions from indigenous social psychology  China  Confucian values  Filial piety  Industriousness  Giving and protecting face  Thrift  Guanxi  Social networking crucial to business relationships  Ren ching  Respectful exchange of gifts, favours and obligations

18. Other dimensions  Japan  Amae and respect  Reliance and dependence upon indulgent love of an older person  Kanban  Concept of whole transcending sum of parts  Ringi  Upward communications and decision making  Sacred treasures-  life time employment, seniority, enterprise unions/families  Harmony and cooperation [‘wa’]  Gakureki Shakai  Social system attaching value to education

19. Example: Theory Z  Application of Japanese management principles to American & British businesses  Long term focus  Zero tolerance  Personal responsibility for self-development  Positive attitudes to seniority  Teamwork rather than individual achievement  Commitment and trust  Quality and pride  Multi-skilling

20. Other dimensions  Africa  Cognitive tolerance  Not on seat  Africa time  Indaba [Malawi]  Ubuntu [Malawi]  Tribal loyalty  Power and respect based on experience  Managers ‘right to manage’

21. Other dimensions  Several cultures resent ‘intrusiveness’ of western values, western research methods, e.g.  Philippines  Sub-Saharan Africa  India  China

22. Other dimensions  Latin American countries: emphasis on  Respect  Family  Hierarchy  Honour  Affiliative obedience  Cultural rigidity  Machismo  Sympatia

23. Other dimensions  India  Detachment as a coping mechanism, therefore working hard is unrelated to success or failure  Ingratiation techniques to advance personal goals within hierarchical collective context  [similar to parts of western Africa]

24. Exercise  Now to discuss and answer the following question:  What are the factors that might determine differences in attitudes to business and risk between  China  UK  Italy  Present your reasons for three of the factors  Now to discuss and answer the following question:  What are the factors that might determine differences in attitudes to business and risk between  China  UK  Italy  Present your reasons for three of the factors

25. Effects of cultural differences  How society functions  Basic values and beliefs- lifestyles  Relationships in organizations  Gambling and investment behaviours  Consumer behaviour  Driver behaviour  How society functions  Basic values and beliefs- lifestyles  Relationships in organizations  Gambling and investment behaviours  Consumer behaviour  Driver behaviour

26. Study into driver behaviour: theories for risk-taking in drivers:  Risk homeostasis  Risk avoidance  Sensation seeking  Flow, arousal  Motivation, intrigue and curiosity  Fatigue  Vigilance

27. But do these apply across cultures?  Risk homeostasis and risk avoidance- cultural differences known  Sensation seeking- individualism-related so will be less strong in Pacific rim countries  Flow- probably a western concept  Motivation, intrigue and curiosity- known to be conceptually different in many cultures  Arousal and fatigue  Vigilance- may vary according to cultural norms

28. Did we expect cross-cultural differences? …Yes  Evidence from Australia and Finland shows differences in safety skills  Differences in driver anger between UK and US  Finland, UK Netherlands differ from Turkey, Iran and Greece: combination of driving style and culture in determining N accidents  Americans more risk-averse than Chinese in relation to buying risky financial options [in 1998, not necessarily now!]

29.  Significant country differences in:  speeding penalties, parking offences,  mean annual mileage and mean yrs driving,  F1 responses to under-stimulation,  F3 lapse and error proneness  F4 anxiety  Corrrelations of personality factors with F1  Significant sex differences for  F2 enthusiasm and flow, F3 lapses and F4 anxiety  Significant age differences for  At fault crashes  Annual mileage Other findings

30. F3: Lapse and error proneness UKUS Men26.0229.45 Women28.1633.18

31.  Hofstede factors?  Uncertainty avoidance or flexibilityX  Masculinity femininityX  Individualism collectivismX  Power distanceX  Long term short term orientationX  Other relevant factors  High or low context culturesPoss  Time perceptionPoss  Risk perception, risk awarenessProb  Anger managementProb  Motivational differencesProb Possible causal cross-cultural differences?

32. A reminder for US vs UK/ Europe … CountryPDUAIMFICLTO Germany3565666731 China80306620118 USA4046629129 Japan5492954680 UK35 668925 Finland3359266341 Austria1170795531 India7740564861 Czech5774575813 Slovakia104511105238 Poland5072605531

33.  This was a small study, possibly not representative, but… the evidence here is consistent:  drivers in US and UK/Europe show differences in propensity to boredom, personality correlates of driving and a series of driver metrics.  So is it the drivers’ culture or the environment that is the cause of these differences, or both? Implications

34.  Situational/environmental causes?  Driving in US rural areas is much lower stimulus driving than UK or Europe  Overtaking manoeuvres [more dangerous, more lapses] less likely in US  Road planners need to think very hard about putting interest back into the roads-  more bends in roads,  more [not less] scenery,  more things to do.  Driver causes  US and UK relatively similar in Hofstede factors, although other Europeans differ more.  So could it be risk perceptions or driving attitudes that differentiate US and Uk/Europe? Cross-cultural differences?

35. Quiz questions  1 In sub-Saharan Africa, it is important not to be late for meetings Yes No  2 In sub-Saharan African countries, a manager should use command rather than persuasion Yes No  3 It is important to get to know your host before doing business in the Middle East Yes No  1 In sub-Saharan Africa, it is important not to be late for meetings Yes No  2 In sub-Saharan African countries, a manager should use command rather than persuasion Yes No  3 It is important to get to know your host before doing business in the Middle East Yes No

36. More….  4 When given a business card by a Japanese business person, what should you do with it and why?  5 Would you start a presentation to Japanese business people with an apology?Yesno  6 If offered coffee by an Arab, if you didn't like coffee, should you refuse it?Yesno  4 When given a business card by a Japanese business person, what should you do with it and why?  5 Would you start a presentation to Japanese business people with an apology?Yesno  6 If offered coffee by an Arab, if you didn't like coffee, should you refuse it?Yesno

37. For doing business……. 7 Trust is important in  Japan  Malaysia  USA  China 8 Seniority or age is important  Japan  Malaysia  USA  China

38. Study example: UK vs Zimbabwean Managers  Attitude and motivational differences measured  Status, prestige, loyalty  Social approval  Motive strength and work values  117 African managers, mostly from Zim but a few from Botswana 32% women  82 British managers 58% women  Similar ages  Attitude and motivational differences measured  Status, prestige, loyalty  Social approval  Motive strength and work values  117 African managers, mostly from Zim but a few from Botswana 32% women  82 British managers 58% women  Similar ages

39. Study results  Cultural differences found in  Importance of status, position, pride and prestige  Social approval  Loyalty to work colleagues… [tribal]  No differences found for  Courtesy  Accept criticism  Admit mistakes  Loyalty to friends and family  Cultural differences found in  Importance of status, position, pride and prestige  Social approval  Loyalty to work colleagues… [tribal]  No differences found for  Courtesy  Accept criticism  Admit mistakes  Loyalty to friends and family

40. A few more to compare… CountryPDUAIMFICLTO China80306620118 USA4046629129 Japan5492954680 UK35 668925 Arab Cs80685338- E Africa6452412725 Zim W Africa77544620- Spain5786425119 Italy5075707634

41. What can other research add?  Specific aggressive behaviours in driving are associated with cultural norms [Shinar, 1998]  Chinese from PRC more risk-seeking in investments than USA [Weber and Hsee, 1998]  US more risk-averse than Spanish [Zinkhan & Karande 1990]  Differences in risk preference between PRC, USA, Germany and Poland [Weber and Hsee 1998]  Many nationality differences found in sensation- seeking and risk taking [Pizam et al, 2004]  Specific aggressive behaviours in driving are associated with cultural norms [Shinar, 1998]  Chinese from PRC more risk-seeking in investments than USA [Weber and Hsee, 1998]  US more risk-averse than Spanish [Zinkhan & Karande 1990]  Differences in risk preference between PRC, USA, Germany and Poland [Weber and Hsee 1998]  Many nationality differences found in sensation- seeking and risk taking [Pizam et al, 2004]

42. More research…  Risk judgements taken by HK and Taiwan more sensitive to magnitude of potential losses and less mitigated by prob [positive outcomes] than Netherlands and US [Bontempo et al, 1997]  Culturally diverse groups had more problems with interaction behaviours that interfered with problem- solving [Watson and Kumar 1992]  Risk perception ratings of drivers: Spanish highest, US lowest, younger perceived less risk [cf West German and Brazil] [Sivak et al 1989]  Risk judgements taken by HK and Taiwan more sensitive to magnitude of potential losses and less mitigated by prob [positive outcomes] than Netherlands and US [Bontempo et al, 1997]  Culturally diverse groups had more problems with interaction behaviours that interfered with problem- solving [Watson and Kumar 1992]  Risk perception ratings of drivers: Spanish highest, US lowest, younger perceived less risk [cf West German and Brazil] [Sivak et al 1989]

43. And more….  Australia- issues in risk-taking include self- improvement, emotional engagement and control [Lupton & Tulloch, 2002]  Turkish drivers: smaller safety margins that do not allow corrective manoevres [Ozkan et al, 2006]  Using simulated intersection crossing, West Germans made fewer attempts, greater p(success), greater safety margins than US or Spanish [Sivak et al, 1989]  Australia- issues in risk-taking include self- improvement, emotional engagement and control [Lupton & Tulloch, 2002]  Turkish drivers: smaller safety margins that do not allow corrective manoevres [Ozkan et al, 2006]  Using simulated intersection crossing, West Germans made fewer attempts, greater p(success), greater safety margins than US or Spanish [Sivak et al, 1989]

45. Power distanceUncertainty avoidance Individualism-collectivismMasculinity-femininity LT/ST orientationRisk perception Risk aversionAffect, including anger MotivationNeed for harmony Respect and pietyTrust Responses to errorsViolations Context & communicationsTime perception Social approval Groupthink, shift to risk In-group bias and tribalismLeadership/ management And all these can affect how we work and behave in many situations! Summary of cultural difference issues across the studies

46. But we should not forget..  That the scores for countries have considerable within-groups variation.  That some countries [e.g. India, US] have large ethnic sub-groups which will be different to the country averages.  So I can propose that countries may divide on each dimension into 3 [perhaps Individualism-collectivism into 5] broad groupings.  That the scores for countries have considerable within-groups variation.  That some countries [e.g. India, US] have large ethnic sub-groups which will be different to the country averages.  So I can propose that countries may divide on each dimension into 3 [perhaps Individualism-collectivism into 5] broad groupings.

47. Key texts Hofstede G and Hofstede G (2005) Culture and Organizations: Software of the mind. 2nd ed London: McGraw Hill Lewis RD (2007) When Cultures Collide. 3rd ed London: Nicholas Brearley

48. Joan Harvey Newcastle University, United Kingdom and Visiting Professor, Czech University of Life Sciences [CZU] Joan.Harvey@ncl.ac.uk With thanks to Neil Thorpe, Newcastle University, United Kingdom Corinne Mulley, Professor of Transport Economics, University of Sydney, Australia Ludek Kolman, CZU Thank you for your attention