1. The Dimensions of Culture Hofstede and the HERMES Project

2. Geert Hofstede Hofstede is a native of the Netherlands and acquired his doctorate in the field of social psychology. Beginning in 1966, he undertook a massive research project involving a major multinational corporation identified only by the pseudonym HERMES. In the course of this project some 116,000 questionnaires were completed by HERMES employees at all levels (unskilled workers to top managers) located in 50 developed and less developed nations. The questionnaires were administered in the language of each country. A total of 20 languages were employed. The principal difference among the respondents was culture; all of them were otherwise similar because they were carefully matched for other characteristics such as age, sex, and job category, and all worked for the same corporation.

3. Power Distance This dimension indicates the extent to which a society accepts the fact that power in institutions and organizations is distributed unequally among individuals.

4. Power Distance LARGESMALL High dependence needsLow dependence needs Inequality acceptedInequality minimized Hierarchy neededHierarchy for convenience Superiors often inaccessibleSuperiors accessible Power-holders have privilegesAll have equal rights Change by revolutionChange by evolution

6. Uncertainty Avoidance This dimension indicates the extent to which a society feels threatened by ambiguous situations and tries to avoid them by providing rules, believing in absolute truths, and refusing to tolerate deviance.

7. Uncertainty Avoidance STRONGWEAK Anxiety, high stressRelaxed, lower stress Inner urge to work hardHard work not a virtue per se Showing emotions acceptedEmotions not shown Conflict is threatening Conflict & competition seen as fair play Need for consensusAcceptance of dissent Need to avoid failureWillingness to take risks Need for laws and rulesThere should be few rules

9. Individualism vs Collectivism This dimension indicates the extent to which a society is a loosely knit social framework in which people are supposed to take care of themselves and their immediate families, instead of a tight social framework in which people distinguish between in-groups and out-groups and expect their in- group to look after them.

10. Individualism vs Collectivism INDIVIDUALISMCOLLECTIVISM “I” conscious“We” conscious Private optionsRelationships over tasks Fulfill obligations to selfFulfill obligations to group Loss of self-respect, guiltLoss of “face”, shame

12. Masculinity vs Femininity This dimension indicates the extent to which the dominant values in society tend toward assertiveness and the acquisition of things, and away from concern for people and the quality of life.

13. Masculinity vs Femininity MASCULINITYFEMININITY Ambitious and a need to excelQuality of life serving others Tendency to polarizeStriving for consensus Live in order to workWork in order to live Big and fast are beautifulSmall and slow are beautiful Admiration for the achieverSympathy for the unfortunate DecisivenessIntuition

15. Confucian Dynamism This dimension indicates the extent to which a society exhibits a pragmatic future-oriented perspective rather than a conventional historic or short term point of view.

16. Confucian Dynamism LOWHIGH Absolute truthMany truths (time, context) Conventional/TraditionalPragmatic Short term orientationLong term orientation Concern for stabilityAcceptance of change Quick results expectedPerseverance Spending for todayThrift for investment

18. Cultural Constraints on Transfer of Technology Across Nations

21. Proposition 1: Process- and person-embodied technologies are more difficult than product-embodied technologies to transfer and diffuse across nations because cultural differences at the organizational, as well as societal, level play greater roles in such transfers.

22. Proposition 2: Transfer of technology is easiest between two organizations that are similar in terms of their societal/national culture-based tendencies to either avoid or embrace uncertainty generated in their organizational contexts to such transfers.

23. Proposition 3: Technologies that might introduce significant changes in the distributions of power, status (real and symbolic), and rewards in the recipient organization of the developing country that emphasizes power distance are least likely to be effectively transferred.

24. Proposition 4: a)Organizations located in individualistic cultures are more successful than organizations located in collectivistic cultures in their propensity to absorb and diffuse imported technology. b)However, collectivistic cultures that are fairly masculine also are effective in such matters.

25. Proposition 5: Masculine cultures are more effective than feminine cultures in absorbing and diffusing imported technology in organizational contexts.

26. Associative vs Abstractive Cultures ASSOCIATIVE People utilize associations among events that may not have much logical basis. Communication is characterized by face- to-face contact, and it takes place among individuals who share a large body of information based on both historical and contextual modes. Context is very important. ABSTRACTIVE Cause-effect relationships or rational Judeo- Christian types of thinking are dominant. A vast amount of communication tends to be conveyed through mass media and related technological mechanisms.

27. Proposition 6: Abstractive cultures are more effective than associative cultures in their ability to absorb and diffuse imported technology.

28. Negotiated Order 1)The number of negotiators, their experience, and whom they represent. 2)The sequence and frequency of negotiations. 3)The relative balance of power among the concerned parties. 4)The stakes and visibility of the outcome of the negotiations. 5)The complexity of the issues. 6)The alternatives to avoiding or discontinuing negotiations.

29. Proposition 7: Differences in the negotiated orders of the cultures of the organizations involved in the transfer and diffusion of technology across nations adversely affects the effectiveness of such transfers.

30. Absorptive Capacity 1)Local versus cosmopolitan orientation. 2)The existence of a sophisticated technical core in the recipient organization. 3)The differences in strategic management between the transacting organizations.

31. Proposition 8: Cosmopolitan organizations in societies that also have a sophisticated technical and an appropriate strategic management orientation are more effective than local organizations in systematically managing technological transfers.