Improving national cultural indices using a longitudinal meta-analysis of Hofstede's dimensions

This meta-analysis offers an updated set of national cultural scores along the dimensions of Hofstede's cultural framework. The meta-analytic national cultural indices have two advantages. First, they are based on a larger and more representative sample than that used in Hofstede's or any other cross-cultural comparison study. The data come from 451 empirical studies representing over 2000 samples comprising over half a million individuals from 49 countries and regions. Second, cultural change is addressed by offering separate sets of indices for different decades. This would be helpful in longitudinal studies of the interplay between culture and other phenomena. The meta-analytic indices are validated against a set of external criteria.     

The role of national culture in financial literacy: Cross-country evidence

This paper examines the effect of national culture on adult financial literacy levels in 12 countries. Contrary to earlier financial literacy studies, our results are directly comparable across countries given that we use the standardized OECD/INFE financial literacy survey data and Hofstede's, 2001, cultural dimensions to capture financial literacy and national culture. In line with the financial socialization theory, we find that uncertainty avoidance positively influences financial literacy, while individualism negatively influences financial literacy. We conclude that national culture affects financial literacy and that it is important to account for cultural dimensions in future international financial literacy research.     

Cross-country differences in ICT adoption: A consequence of Culture?

The diffusion of information and communication technology (ICT) has witnessed a surge in recent years. The rate of adoption across countries diverges considerably regardless of the income levels. In this paper, we attempt to explain the differences in ICT adoption rates across countries by using Hofstede's cultural framework. The effect of culture on ICT adoption is explored by applying two different measures of ICT adoption, namely the average share of ICT spending in GDP across 42 countries, and per capita computer across 49 countries. The results suggest that the national culture and the ICT adoption rate of a country are closely related. It appears that most of the Hofstede dimensions are important in influencing ICT adoption, thereby confirming our hypotheses. In particular, the power distance and the uncertainty avoidance dimensions seem to be the most important ones. These results are robust in both datasets, even after controlling for levels of education and income.     

How Much are Health Websites Influenced by Culture? Content Analysis of Online Diet Programs in the United States,the United Kingdom,and Korea

This study investigates the content of diet websites in the United States (US), United Kingdom (UK), and Korea from a cross-cultural perspective using two cultural typologies: Hofstede's individualism-collectivism and Hall's low-high context. The results show a balance of the universal features and culture specific characteristics in the websites. Interestingly, the UK was in the middle between the US and Korea in several features even though the UK and the US typically had been generally included in the same cultural group in advertising studies. It was also determined that neither Hofstede's typology nor Hall's high-low context is enough to explain the cultural representations found on the websites. The need for new typologies for explaining or categorizing the cultural characteristics in advertising is suggested.     

The Cultural Roots of Guanxi: An Exploratory Study

This paper first describes the cultural roots and characteristics of guanxi in Chinese society. It then goes on to test some propositions about the perceived relationship between these characteristics and (i) Hofstede's conceptualisation of collectivism and power distance and (ii) the content and quality of formal institutions. The sampling frame used consisted of three groups of students –viz. Chinese Singaporeans, Non‐Chinese Singaporeans and Mainland Chinese, studying in tertiary institutions in Singapore. Our findings suggest that, while the perceptions of guanxi were positively and significantly related to Hofstede's culturally related variables, this was not so in the case of formal institutions. This latter result suggests that, in East Asian countries, guanxi may well be regarded as, at least, a partial substitute for formal institutions.     

Effectiveness of Absurdity in Advertising Across Cultures

This paper examines the effect of absurd advertising on memory and persuasion across cultures. Drawing on Hofstede's cultural dimensions, it is hypothesized that the effect of absurdity on recall is culturally invariant, whereas the effect on attitude toward the ad is contingent on the recipients’ cultural orientation. The assumptions are tested using a between-subjects experimental design, in which we manipulated type of absurdity and used the cultural dimensions as blocking variables. Data was collected from 274 students in the United States, Germany, Russia, and China. We discuss theoretical and managerial implications of these findings as well as guidelines for further research.     

Determinants and Effects of Cultural Context: A Review,Conceptual Model,and Propositions

Edward Hall's pioneering work on “Silent Languages” of time, space, material possessions, friendship patterns, and agreements and his conceptualization of cultures as low-context and high-context have inspired numerous research studies on international and cross-cultural marketing. Despite these widespread applications, there is no research to date that integrates the theoretical foundations and applications of Hall's work in a single study. In this context, the current research delivers on the following three goals: (a) an extensive literature review of Hall's work on cultural context is done; (b) a conceptual model is developed that depicts the determinants and effects of cultural context; and (c) 12 propositions are developed, contrasting the effect of low- versus high-context cultures on a variety of cultural themes, such as Hofstede's five cultural dimensions, mono-chronic or M-time versus polychronic or P-time orientation, and relationship building etc. International marketing implications of this research and directions for future research are discussed.     

Organizational acculturation in foreign subsidiaries

Organizational acculturation refers to the influence of parent organizational culture resulting in change of work values of local employees in foreign subsidiaries. A study of host country national middle managers in Southeast Asia explored the impact of organizational acculturation. In the first phase, the work-related cultural values of managers employed by Swedish subsidiaries in Singapore were compared with those of a control group of managers employed by non-Swedish companies. The second phase investigated the work values of managers in Hong Kong, Singapore, and Thailand, based on Hofstede's four cultural dimensions. The findings clearly indicated that local managers in Swedish subsidiaries had experienced organizational acculturation, as distinct Swedish values had been adopted. However, cultural change did not occur to an equal extent among the three countries nor between different cultural values. Implications of the findings for international human resource management are discussed. © 1993 John Wiley & Sons, Inc.     

The impact of cultural differences on technology adoption

This study examines the impact of Type I and Type II cultural differences on mobile phone adoption patterns. We use Hofstede's cultural dimensions to examine cultural differences of two countries (Type I: the U.S.; Type II: S. Korea) and employ the Bass diffusion model to delineate innovation and imitation effects on mobile phone adoption. The results show that in Type I culture innovation factor has a significantly higher level of effect on adoption than it does in Type II culture; and in Type II culture imitation factor has a higher degree of effect on adoption than it does in Type I culture. These findings imply that in individualistic cultures, people tend to seek information on their own from direct and formal sources, whereas in collectivistic cultures, people rely more on subjective evaluation of an innovation, conveyed from other-like-minded individuals who already have adopted the innovation.     

Do culture-dependent response styles distort substantial relationships?

Survey data are frequently distorted by answering tendencies, such as acquiescence, disacquiescence, midpoint and extreme response style. Cross-cultural research projects may be particularly vulnerable to misinterpretations. This paper provides empirical insights into the manner and degree to which culture systematically distorts findings from survey data. The study is based on data from 1027 respondents from Austria, France, Germany, India, Mexico, Russia, Spain, and the United States. The investigation firstly demonstrates that Hofstede's and project GLOBE's cultural dimensions explain variations in response styles across different countries. Secondly, and most importantly, the paper explores the impact of culture-dependent response styles on findings. Remarkably, the extent of distortion in correlation analysis and mean comparisons is less severe than expected. Nonetheless, cross-cultural researchers would be well advised to control at least for (dis-)acquiescence before analyzing and interpreting their data.     

Culture and negotiation

Negotiation has three elements: predisposing factors, process, and outcomes. Process is the art and outcomes is the science of negotiation. Culture adds a new consideration that affects each element. Culture's effects on negotiation are studied using Geert Hofstede's dimensional model of culture. The negotiation process and Hofstede's culture model are combined in four settings. The settings are defined by two factors, if the negotiation is within or between cultures and the role of the participant as a negotiator or intervener. The predicted effects of culture on the process and outcome are detailed for each setting. Then the outcomes of the negotiation decision are discussed in terms of Hofstede's model, especially “Uncertainty Avoidance” and “Masculinity-Femininity” dimensions. Culture clearly influences each aspect of negotiation. Understanding culture can make the participants more effective negotiators and interveners.     

Comparing advertising effectiveness in South-American and North-American contexts: testing Hofstede's and Inglehart's cultural dimensions in the higher education sector

ABSTRACT

This research compares the effectiveness of advertising and relational marketing in two countries characterized by varying levels of both Hofstede's and Inglehart's cultural dimensions – Peru (high-power distance, high collectivism, survival and traditional values) and Canada (low-power distance, high individualism, self-expression and secular-rational values). Survey data from a high credence service sector (higher education) in both countries is used for the analysis. The results indicate that advertising and relational marketing have direct effects on choice in Peru, but do not have significant direct effects on choice in Canada. Advertising does, however, affect positively perceptual outcome measures (perceived marketing effectiveness) in Canada. Additionally, we find that advertising and relational marketing have an indirect impact on choice and perceived marketing effectiveness through the mediation of perceived informativeness and influencers in both countries. These results point to the need to account for mechanisms and mediating variables when building theoretical frameworks in cross-country studies.     

The use of humour in television advertising: revisiting the US-UK comparison

This paper replicates a portion of the Weinberger and Spotts (1989) study, which compared the use of humour in television advertising in the US and the UK. A careful comparison of the results of the two studies suggests that the overall use of humour has become more similar in the two countries. Unlike the Weinberger and Spotts study, the current study found no difference in the proportion of ads that use humour, and little difference in the situational use of humour. However, differences in the way that humour is used and in the types of humour used remain. These differences are discussed in the context of Hofstede's (1991) cultural dimensions.     

A comparative evaluation of seven instruments for measuring values comprising Hofstede's model of culture

Culture and its measurement are foundational to International Business research. Hofstede's model of culture dominates cross-cultural research. Unfortunately, the evidence of poor psychometric properties of Hofstede's instrument for measuring cultural values, the VSM, has been mounting, which prompted the development of numerous alternative instruments for measuring cultural values comprising Hofstede's model of culture. The abundance of choices makes it challenging to determine which of the instruments is most suitable for a given study. Using a large international sample (N = 12,462), we evaluated the psychometric properties of seven different instruments for measuring individual-level values in Hofstede's cultural framework and assessed their content validity, reliability, factor structure, and measurement equivalence. Our tests confirmed that Hofstede's instrument suffers from several psychometric deficiencies, while other instruments, notably those developed by Dorfman and Howell (1988), Yoo et al. (2011), and Taras et al. (2013), showed good reliability and validity. Guidelines for selecting the most suitable instrument and directions for future instrument development are provided.     

A Comparison of Communications Practices Among Indian and U.S. Scientists and Engineers

ABSTRACT

An investigation of communication practices among U.S. (n s= 90) and Indian (n = 71) engineers and scientists employed in the aerospace industry revealed statistically significant differences between the two cultures. The differences may be attributed to Hofstede's (1980) cultural dimensions of individualism, uncertainty avoidance, and power distance; Hofstede and Bond's (1988) Confucian dynamism; and Hall's (1976) cultural context. Implications for practice address strategies to accommodate foreign cultures and to develop complementary approaches using the strengths of both cultures. Areas for future research are offered.     

A Comparison of Native Culture,Non-Native Culture and New Management Ideology

Abstract Based on a case study of a Native-operated criminal justice organization, this article uses Hofstede'sfive dimensions of national cultural differences to examine the connections between cultural values and management practices. It concludes that Hofstede's dimensions can provide insights into the differences between Native and non-Native cultures and how Native organizations may draw on traditional cultural values to improve organizational effectiveness. In general, Native cultures are described as collectivist, egalitarian, adaptive, and tolerant. The argument is made that the cultural context in which Native organizations operate is in many ways more compatible with the new management ideology than is the society in which this ideology prevails. Résumé Fondée sur une étude de cas d'un organisme de justice pénale géré par les autochtones, la présente recherche examine les liens entre des valeurs culturelles et des pratiques de gestion en se référant aux cinq dimensions des différences culturelles nationales de Hofstede. Elle con-clut que ces dimensions peuvent jeter une lumière nou-velle sur les différences entre cultures autochtones et allochtones, et sur la façon dont les organismes autochtones peuvent tirer parti de leurs valeurs culturelles traditionnelles pour rehausser I'efficacité orga-nisationnelle. En général, les cultures autochtones sont perçues comme collectivistes, égalitaires, flexibles et tolérantes. Nous proposons l'idée que le contexte cul-turel dans lequel fonctionnent les organismes autochtones est à de nombreux égards plus compatible avec la nouvelle idéologic de gestion que ne Vest la société où prévaut cette idéologic.     

National Culture and Default on Mortgages

In this paper, we investigate the relationship between national cultural characteristics and default on mortgages (DOM). Using Hofstede's constructs and controlling for other relevant determinants of DOM, our regression analyses show that borrowers from countries with high individualism may default more on their mortgages in both a relatively stable economic period and during a period of crisis. Moreover, we find that borrowers from societies showing lower level of pragmatism and higher level of indulgence default more on their mortgages in a stable economic period. Our findings suggest important implications for multinational financial institutions that provide mortgages across countries.     

Culture's Consequences for Management in Hong Kong

In a recent review of Hofstede's comparative study of business practice and national cultures, 61 works replicating his methods are identified, and the critical four differences in the cultural dimension are ‘largely confirmed’. The only replication of Hofstede's study within IBM (his original sample vehicle) has largely validated the original model some twenty years later. These results seem to confirm the valuable contribution of Hofstede's work, although his model contains the limitations of all models; the simplification of reality into an understandable form cannot do justice to its complexity. In this paper, the main consequences of Hofstede's work for Hong Kong are reviewed. His proposition that culture and particularly social values influence economic activity and management, which is consequently ‘culture-bound’, is restated and supported by more recent studies.     

Hermes Revisited: A Replication of Hofstede's Study in Hong Kong and the UK

Hofstedes' well-known study of cross-cultural values has come to be regarded as among the most influential in the field, and the subsequent extensive citation of a study, which involved the measurement of international differences in cultural values within IBM or ‘Hermes’, is testimony to its seminal status. Unfortunately, this success has not been matched by increased co-operative research amongst social scientists into cultural issues, namely through an ‘intersubjective’ approach which was one of Hofstede's hopes for subsequent development. Hofstede's approach, based on the comparative explanation of work-related values, is categorized and labelled variously and using different typologies, thus re-emphasizing that his approach is not the only perspective.     

Cultural Change and Marketing

ABSTRACT

The results of this study suggest that marketing strategies need to be adjusted to changing cultures. Culture affects marketing decisions regarding product, price, promotion and place (the 4 Ps). Many marketing studies have been reported based on Hofstede's seminal work on national culture (1980). Marketing managers need to be cautious about assuming the validity of the Anglo cluster equating the cultures of the United States (U.S.) and Canada. We should recognize that national cultures are changing in the U.S., Canada and Mexico, as well as most other countries in the world. Our findings for a very recent sample of people attending executive and MBA programs would seem to apply to the upwardly-mobile business class. Contrary to the ubiquitous Hofstede data found in textbooks, we found no significant differences in Power Distance between the U.S., Mexico and Canada. Our findings regarding differences in Uncertainty Avoidance show that Mexico did not have a significantly higher mean than the U.S., but that the U.S. had a higher mean than Canada. The U.S. and Canada did not differ significantly on Individualism/Collectivism. Our results suggest that caution should be taken in automatically assuming cultural parity between the U.S. and Canada and that established cultural positions between the North American Free Trade Agreement (NAFTA) member nations may be changing.