The power behind the recent surge in Asia’s economy may have developed from the
tenets of one of that continent’s earliest philosophers.
The Confucius Connection:
From Cultural Roots
To Economic Growth
Geert Hofstede
Michael Harris Bond
J
n 1968,the late Nobel-prize-winning
mist Gunnar Myrdal published
Asian Drama that described
tions
into
the failure
ment policies
in South
econo-
a book entitled
his investiga-
of economic
develop-
and Southeast
Asia.
however,
countries
some South and Southeast Asian
besides Singapore,
such as India,
Malaysia,
Thailand,
scene of Myrdal’s
and Indonesia
drama),
(the very
also show signs of
Twenty years later, we are experiencing
a very
an economic takeoff.
World Bank data on the average an-
different
South
nual growth
Korea,
kind of Asian
Taiwan,
Hong
drama:
Kong,
Japan,
and Singapore
product
rate of per capita gross national
(see Exhibit 1) confirm
the East Asian
are now outperforming
the United States and
Western Europe economically.
Western mar-
lead. The Five Dragons, as these countries are
sometimes called, are heading the list, with
kets are flooded with high-quality,
hightechnology
products
“made in Asia”; the
production
of cameras, TV sets, and domestic appliances
has all but ceased in many
average annual sustained-growth
percentages
over a 20-year period of 7.6% for Singapore,
7.2% for Taiwan, 6.6% for South Korea,
Western countries,
the automobile
business
has suffered severely, and President Reagan
has had to violate his free-trade principles to
save the U.S. microchip
industry. It is true
that most of the competition
is from East,
rather than from South or Southeast Asia;
6.1% for Hong
Kong,
and 4.7% for Japan.
These compare with rates for Western Europe
of between 3.5% for Austria and 1.6% for
Britain; for Latin America of between 4.3%
for Brazil and -2.1% for Nicaragua; of 2.4%
for Canada;
and of 1.7% for the United
States.
5
ment was obviously
WHY EAST ASIA?
also involved,
is too easy an explanation
Few economists
nomic
predicted
the staggering
rise of the East Asian
many failed to recognize
well under
forecast
Strout
way. For example,
First, the quality
and
the qualities
begs the question
collectively
Economic
depends
ond, the quality-of-management
an economic
1966 did not even in-
of management
another
on
of the people to be managed;
and Alan M.
in the American
of September
eco-
it even when it was
by Hollis B. Chenery
published
Review
countries,
but this
for two reasons.
explanation
of how an entire nation
produce
nation.
sec-
better management
can
than
For the real explanation,
must turn to the domain
we
of culture.
clude Hong Kong and Singapore because they
were considered insignificant
in this respect.
The future
performances
of Taiwan
and Ko-
rea were heavily underrated,
and those of India and Sri Lanka were overrated.
Fifteen
years later, Singapore
2.5 million
exported
a population
Dragons
with a population
of
more than India did with
of 700 million.
THE NEO-CONFUCIAN HYPOTHESIS
Futurologist
Herman Kahn
cultures of the East Asian
Confucian”-
that is, rooted in the teachings
Confucius.
Kahn saw himself as a “culturist”:
Not only was the success of the Five
He, like the authors
unpredicted,
belief that specific nations
economists
but even after the fact
have no explanation
of why these
of this article,
tural traits that are”rather
can often be modified.”
Colombia,
define culture
starting
position?
capita
income
Korea’s
($150).
seemed
to be in a better
In 1965,
Colombia’s
($280) was about
In 1985,
South
capita income ($2,150) was about
per
twice South
Korea’s per
one-and-a-
half times Colombia’s ($1,320). U.S. garment
buyers, however, chose South Korea -even
though Colombia is nearer-because
of better selection, better quality, lower prices, and
more reliable delivery times. Better manage-
of the mind
although
The authors
as “the collective
that distinguishes
the members
of one category of people from those of another.” This definition applies to national as
well as to corporate
at the national
hypothesis
cultures,
but we will stay
level. Kahn’s neo-Confucian
is that the countries
of East Asia
have common cultural roots going far back
into history, and that under the world-market
conditions
of the past 30 years this cultural
and nzuny fuiled to recognize if even when
was
well under way.”
they
like to
programming
economic rise of fhe Eusf Asian countries,
if
held the
sticky and difficult
“Few econovnisfs predicted Gze staggering
6
of
have specific cul-
to change in any basic fashion,
particular countries were so successful. Why,
for example, did South Korea outperform
which
has labeled the
countries “neo-
in-
Exhibit
2
ECONOMICGROWTH FOR SELECTED
COUNTRIESAND GROSS NATIONAL PRODUCT(GNP) PERCAPITA
1965’85
Ave.
7 965
Annual
GNP/capita
Growth
1985
GNP/capita
Rate
GNP/capita
U.S. $ and
U.S. $ and
(Rank)
(Rank)
%
Singapore
7.6
550 (12)
7420 (10)
Taiwan
7.2
220 (16)
3600 (12)
South Korea
6.6
150 (17)
2150 (13)
Hong Kong
6.1
590 (11)
6230 (11)
Japan
4.7
780 (10)
11300 (5)
Brazil
4.3
240 (15)
1640 (15)
Austria
3.5
1180 (8)
9120 (8)
Colombia
2.9
280 (14)
1320 (16)
West Germany
2.7
1810 (5)
10940 (6)
Canada
2.4
2260 (3)
13680 (3)
Netherlands
2.0
1520 (7)
9290 (7)
Sweden
1.8
2160 (4)
11890 (4)
1.7
90 (18)
270 (18)
States
1.7
3420 (1)
16690 (1)
Great Britain
1.6
1580 (6)
8460 (9)
Poland
1.5
840 (9)
2050 (14)
1.4
2310 (2)
16370 (2)
330 (13)
770 (17)
India
United
Switzerland
Nicaragua
-2.1
Source: World Development Report 1987 and other statistics
heritance
vantage
has constituted
for successful
Cultural
cally transferred;
a competitive
business
inheritances
ad-
activity.
are not geneti-
they can in principle
be ac-
ming; thus from generation to generation, all
kinds of cultural traits are transferred.
With
this in mind, let us begin to look at the teachings of Confucius.
quired by any human being who is at the right
place at the right time. We begin to acquire
the mental programming
we call culture from
the day we are born, and the process continues throughout
our life in a particular society.
Cross-cultural
developmental
psychologists
who have studied the behavior of children in
different societies have shown that a child
learns patterns of cultural behavior very early
in its life. For example, Japanese male infants
of 3 to 4 months are noisier than Japanese female infants of the same age, whereas in the
United States the opposite is true. Sex roles
are only one aspect of our cultural program-
CONFUCIUS AND HIS TEACHINGS
Kong Fu Ze, whom the Jesuit missionaries renamed Confucius, was a high civil servant in
China around the time of 500 B.C. Known
for his wisdom,
he was always surrounded
by
a host of disciples who recorded what we
know of his teachings. He thus held a position
very similar to that of the Greek philosopher
Socrates, who lived just 80 years later. Confucius’ teachings are lessons in practical ethics
without any religious content; Confucianism
7
(if only on the surface);
one’s thoughts,
ever, remain
free. Harmony
maintenance
of an individual’s
ing one’s dignity,
how-
is found
in the
“face, n mean-
self-respect,
and prestige.
The use of our own word “face” in this sense
was actually
derived from the Chinese:
Losing
one’s dignity,
in the Chinese tradition,
is
equivalent
to losing one’s eyes, nose, and
mouth. Social relations should
in such a way that everybody’s
tained. Paying respect
called “giving face.”
GEERT HOFSTEDE
anthropology
management
of Limburg at Maastricht,
He is also director
for Research on Intercultural
which recently
moved
3. Virtuous
of orgmizutiorzui
and international
the University
Netherlands.
is professor
ut
the
of the Institute
Cooperation,
He has lectured and published
and acts us an international
consultant
which,
however,
to cow-
punies and organizations.
toward
else is
others
con-
does not extend as far as the
injunction
Confucius
internationally
to someone
sists of treating others as one would like to be
treated oneself: a basic human benevolence Christian
to the xwne university.
behavior
be conducted
face is main-
to love thy enemies.
said, if one should
As
love one’s ene-
mies, what would remain for one’s friends?
4. Virtue with regard to one’s tasks in life
consists of trying to acquire skills and education, working hard, not spending more than
necessary,
is not a religion
but a set of pragmatic
for daily life, derived
from what
rules
Confucius
saw as the lessons of Chinese history. The following
are the key principles
being
Conspicuous
patient,
consumption
ing one’s temper.
all things.
and
persevering.
is taboo,
Moderation
as is los-
is enjoined
in
of Confucian
teaching:
I. The stability of society is based on unequal relationships between people. The “wu
are ruler/
lun,” or five basic relationships,
THE NEW SCIENCE OF CULTUREMEASUREMENT
subject,
brother,
fate of nations as Kahn and others assume it
to be, how then do we learn about culture?
father/son,
older brother/younger
husband/wife,
and older friend/
If culture
is as important
in determining
the
younger friend. These relationships
are based
on mutual, complementary
obligations:
The
junior partner owes the senior respect and
obedience; the senior owes the junior partner
Mere description
will not do; we need an
approach that allows comparisons
between
countriesthat is, an identification
of cultural variations.
protection and consideration.
2. The family is the prototype of all social
organizations.
A person is not primarily
an
individual;
rather, he or she is a member of
a family. Children should learn to restrain
themselves,
to overcome their individuality
so as to maintain the harmony in the family
Cultural
differences
can be measured indirectly; that is, they can be inferred
from data about collective behavior, such as
the way a country’s national
wealth is distributed
over its population;
the mobility
from one social class to another; or the frequency of political violence or labor con-
flicts,
traffic
accidents,
or suicides.
these can tell us something
culture,
about
but it is not always
should
All of
a country’s
clear how they
be interpreted.
We can avoid this problem
ing direct measures
of culture
by tak-
through
asking
well-designed
questions about people’s values
or beliefs. For this type of measurement,
we
should
have
respondents
access
to matched
from a number
tries (the more
samples
of different
the better,
of
coun-
but preferably
at
least 15).“Matching samples” means that the
respondents
should be people who are as
similar
as possible
in all aspects of their lives
except for their nationality.
year-old
dents,
schoolchildren,
or business
cific
training
matched
representative
populations
though
female medical
stu-
can
samples
such as public
opinion
spesuch
to have
chology at the Chinese University
of Hong
Kong. He also acts as R cross-cultural management trainer for multinational corporations in
Hong Kong, where he has lived since 1974. His
research and publications are devoted to a comparison of the psychological and social functioning of the Chinese people with people from
Western countries.
national
polls, al-
these, too, can be used.
ask the same set of at
countries.
of all our subjects
In comparing
we try to find the patterns
that
other.
form
from whole
least 30 or 40 questions
liefs
attending
all
It is not necessary
We usually
various
ten-
managers
courses
samples.
For example,
MICHAELHARRISBOND is senior lecturer in psy-
distinguish
We
methods
use
that
one
of values and be-
countries
of
in
the answers,
from
several
have been developed
each
statistical
for this
Corporation
made
tional employee
its databank
attitude
academic
research.
worldwide
comparative
employees
since
116,000
on interna-
surveys available
IBM had been
attitude
surveys of its
1967; by 1973, more
questionnaires
for
holding
in 20. different
than
lan-
purpose; this procedure supplies us with suggested dimensions of culture on which we can
guages from 72 countries had been collected.
Employee attitude
surveys have of course
locate our various
been held in many
has succeeded,
countries.
such
If our research
dimensions
should
be
easy to interpret: They should represent fundamental
problems
of human societies for
which there is no one solution but a range of
solutions,
of which each country’s culture
represents
one particular
choice.
A Case of Culture Measurement:
The IBM Studies
A unique opportunity
for culture measurement arose in the early 1970s when the IBM
companies,
but most of
them are not internationally
standardized
and they contain only questions about satisfaction at work (“How do you like your boss,
pay, working
conditions,”
and so forth),
which are not very suitable as cultural indices.
However, IBM’s international
questionnaire contained about 60 questions (out
of a total of about 150) on the employee’s basic values and beliefs that were eminently fit
for measuring
culture. They included such
questions as “How important
are each of the
following to you in an ideal job?” followed by
9
a list of 14 job characteristics
such as earn-
ings, job security, challenge, freedom, cooperation, and so forth. In addition, questions
were included
on the preferred
ideal manager
(from very directive
faire).
Finally,
judgments
general
issues at work,
among
employees
than
good.”
their
“strongly
usually
does more
were
from
than
agree”
represented
subsets
same
the corporation
they would
to
be a conservative
found
estimate
analysis
40 of them, ignoring
each
job,
nationality.
If
among counso the national
inside IBM should
of those existing
for the countries at large.
Out of 72 countries
tional culture
ex-
should be larger
be inside,
differences
from
company,
and education,
but different
anything,
cultural differences
culture
harm
to rate
targeted
for comparison
cultures
differed
covered,
the na-
the smaller IBM subsidi-
aries. Later on, it became
possible
to use data
mainly
that these
along
four
dimensions:
1. Power
Distance-
that is, the extent
which the less powerful
members
to
oforganiza-
(like the family)
accept
and expect that power is distributed unequally.
This
represents
inequality
that
is defined
from below, not from above;
it suggests
a society’s level of inequality
is endorsed
that
by
its followers as much as by its leaders. Power
and inequality are of course very fundamental aspects of any society, and any individual
with some international
that all societies
some are mnre
at first used data from
to 53.
The IBM studies revealed
tions and institutions
population:
tries outside
cultures
53
disagree.”
well-matched
country’s
asked
“strongly
The IBM employees
tremely
to laissez-
while those of 14
into three regions-East
Africa, West Africa, and the Arab-speaking
countries-that
brought the total number of
were asked about
such as “Competition
Employees
responses
style for one’s
10 countries,
from another
more were grouped
unequal
2. Individualism
opposite
describes
integrated
experience
are basically
is aware
unequal,
but
than others.
on the one side versus its
(Collectivism)
on the other. This
the degree to which individuals
are
into groups.
On the individualist
“lf culfuve is as imporfunf in defemining
the fate of nations as (Hevman] Kahn and
ofhevs assume if to be, how fhen do we learn
abouf culture? Mere descvipfion will not do; we
need an approach fhaf allows comparisons
befween counfries-fhaf
10
of
culfuml variations.”
is, an identification
side, we find societies
tween individuals
in which
are loose:
the ties be-
Everyone
is ex-
to these cultural
the family:
choices are obviously
Power Distance
by the degree to
pected to look after himself or herself and the
which children
immediate
of their own, Individualism/Collectivism
family. On the collectivist
find societies
in which people from birth on-
ward are integrated
groups;
often
uncles,
aunts,
protecting
into strong,
their extended
and
cohesive
families
grandparents)
them in exchange
ing loyalty.
side, we
The word
sense has no political
in-
(with
continue
the cohesion
of the family
and Masculinity/Femininity
meaning:
It refers to the
the role models
that the parents
to the younger
with
the Confucian
earlier,
it will
Confucian
be
no
countries
fundamental
ism, and mid-range
involving
uersus
all societies
its opposite,
in
Femi-
ity (except Japan,
Masculinity).
respect
to
by
and older
child.
we described
surprise
generally
high on Power Distance,
one,
by
the three dimensions
teachings
group, not to the state. Again, the issue addressed by this dimension
is an extremely
the world.
3. Masculinity
with
children
If we compare
in this
to have a will
other people,
for unquestion-
“collectivism”
are encouraged
present
bred in
that
score
neofairly
low on Individual-
on Masculinity/Femininwhich scores quite high on
The distribution
of roles between the
sexes is another fundamental
issue for any
4. A fourth dimension found in the IBM
studies refers not to social behavior but to
society
man’s search for Truth. We called it “Uncer-
ninity.
that
may
tions. Analysis
women’s
involve
differ
less among
Further,
to men’s values
from one country
they contain
of solu-
of the IBM data revealed
values
than do men’s values.
ourselves
a range
a dimension
if we restrict
(which
to another),
that
societies
vary more
we find that
from very assertive,
competitive,
and maximally
different from
women’s values on the one side, to modest
and nurturing
and similar to women’s values
on the other. We have called the assertive
“masculine”
nine.”
and
the nurturing
The women
in the feminine
have the same nurturing
the masculine
more
assertive
countries
pole
pole
“femi-
countries
values as the men; in
they are somewhat
and competitive,
but not as
much so as the men, so that these countries
show a gap between men’s values and women’s
values.
The three dimensions
described so
far all refer to three types of expected social
behavior: behavior toward people higher or
lower in rank (Power Distance), behavior toward the group (Individualism/Collectivism),
and behavior according to one’s sex (Masculinity/Femininity).
The values corresponding
tainty Avoidance”;
it indicates
a culture
its members
programs
uncomfortable
situations.
or comfortable
“Unstructured
fined as novel,
unknown,
to what extent
to feel either
in unstructured
situations”
are de-
surprising,
or dif-
ferent from usual. Uncertainty-avoiding
cultures try to minimize the possibility
of such
situations
by adhering
to strict laws and rules,
safety and security measures,
and (on the
philosophical
and religious level) a belief in
absolute
Truth: “There can be only one Truth,
and we have it.” People in uncertainty-avoiding countries
motivated
are also more emotional
by inner
nervous
energy.
and are
Uncer-
tainty-accepting
cultures are more tolerant of
behavior and opinions that differ from their
own; they try to have as few rules as possible,
and on the philosophical
and religious level
they are relativist, allowing many currents to
flow side by side. People within these cultures
are more phlegmatic and contemplative;
their
environment
does not expect them to express
emotions.
Exhibit 2 lists scores for the 53 cultures in the IBM research, thereby permitting
11
(F.R
63
67
35
Chile
Colombia
Costa
68
3.5
France
Germany
37
33
45
54
Jamaica
Japan
52
34
13
50
49
19-20
10-11
8-9
15-16
2-3
27-28
42-44
42-44
15-16
46
8-9
51
42-44
17
24-25
39
14
20
53
41
Italy
28
Ireland
Rank
35-36
Israel
77
78
Indonesia
58
68
Hong Kong
Iran
95
Guatemala
India
60
Greece
35
33
Finland
Britain
78
Equador
Great
18
Denmark
Rica
69
65
Belgium
39
11
Austria
Canada
36
Australia
Brazil
49
Index
Power Distance
Argentina
Country
2
46
39
76
54
70
41
48
14
25
6
35
89
67
71
63
8
74
15
13
23
80
38
75
55
90
46
Index
22-23
25
7
19
12
24
21
47-48
37
53
30
3
15
10-11
17
52
9
46
49
38
4-5
26-27
8
18
2
22-23
Rank
Individualism
95
68
70
47
68
43
56
46
57
37
57
66
66
43
26
63
16
21
64
28
52
49
54
79
61
56
Index
1
7-8
4-5
29
7-8
35-36
20-21
30-31
18-19
43
18-19
9-10
9-10
35-36
47
13-14
50
48-49
11-12
46
24
27
22
2
16
20-22
Rank
Masculinity
92
13
75
81
35
59
40
48
29
101
112
35
65
86
59
67
23
86
80
86
48
76
94
70
51
86
Index
Uncertainty
52
23
19
47-48
31-32
45
41-42
49-50
47-48
29
10-15
31-32
28
51
10-15
20
10-15
41-42
21-22
5-6
24-25
37
10-15
Rank
Avoidance
FIVEDIMENSIONSFOR FIFTYCOUNTRIESAND THREE REGIONS
INTERNATIONAL
EMPLOYEEATTITUDESURVFY
IN IBM’s
SCORESON
Exhibit
80
61
96
25
31
23
65
31
Index
Confucian
6
1
15-16
11-12
17
5
11-12
Rank
Dynamism
1
5-6
40
47-48
50
32
2-3
21-23
4
24-25
36-37
18-19
13
31
47-48
45
29-30
21-23
18-19
26
38
5-6
12
104
81
38
31
22
55
95
64
94
63
49
66
74
57
31
34
58
64
66
61
40
81
76
Malaysia
Mexico
Netherlands
Norway
New Zealand
Pakistan
Panama
Peru
Philippines
Portugal
South Africa
Salvador
Singapore
Spain
Sweden
Switzerland
Taiwan
Thailand
Turkey
Uruguay
United
Venezuela
Yugoslavia
10-11
7
77
80
Arab Ctrs.
38
20
27
27
12
91
36
37
20
17
68
71
51
20
19
65
27
32
16
11
14
79
69
80
30
26
18
26-27
39-41
33-35
33-35
50
1
29
28
39-41
44
14
10-11
20
39-41
42
16
33-3.5
31
45
51
47-48
6
13
4-5
32
36
43
53
46
41
21
73
62
38
45
34
45
70
5
42
48
40
63
31
64
42
44
50
58
8
70
23
30-31
39
48-49
3
15
42
31-33
44
32-33
4-5
68
54
52
88
76
46
100
85
64
69
58
29
86
37-38
52
8
94
49
104
44
87
86
28
40
13-14
45
11-12
37-38
34
25-26
50
49
17
53
52
51
14
36
82
25-26
6
85
41
69
50
39
RankNumbers:
1 = Highest;
53 = Lowest(ForConfucian
Dynamism:20 = Lowest)
21-23
64
East Africa
West Africa
Regions:
States
27-28
60
Korea (S)
27
34
36
8
21-22
43
4
16-17
30
26
33
49-50
10-E
53
5-6
39-40
2
44
9
10-15
24-25
39-40
38
35
18
46
16-17
16
25
29
56
87
33
48
19
15-16
14
7
2
10
8
18
20
0
19
13
9
4
30
44
75
each country
to be positioned
four dimensions
(plus a fifth that we will de-
scribe in the next section).
relative:
on each of the
way that the distance between the lowest- and
the highest-scoring country is about 100 points.
among cultures
many
tices. For example,
Individualism
level,
differences
in these four dimensions
consequences
have
for management
prac-
both Power Distance
and
affect
the type
most likely to be effective
ideal leader in a culture
of leadership
in a country.
tances are small would be a resourceful
a culture
The
in which Power Dis-
ocrat; on the other hand,
greater
dem-
the ideal leader in
in which Power Distances
are large
Avoidance
is associated
At the national
dividualism
wealth
product
in dollars)
gross national
strongly
economic
and national
level, In(per capita
are quite
related. We have tested whether caus-
ality went from wealth to Individualism
ple in wealthier
countries
becoming
(peomore
individualist)
(indi-
vidualist
or the other way round
cultures
becoming
wealthier).
We
were able to test this because most of the IBM
population
was surveyed
year interval,
changes
twice, with a four-
so over this period we knew the
in both
wealth
and Individualism.
The data show convincingly
causality goes from wealth
that the arrow of
to Individualism
and not vice versa. If the resources
in a coun-
is a benevolent autocrat (or “good father”). In
Collectivist
cultures,
leadership
should re-
try allow people to “do their own thing,” they
spect and encourage
will start doing just that.
ties; incentives
employees’ group
should
and their distribution
group.
around
tives should
affect
cultures,
as individuals,
people
can
and incen-
people’s
tion is more effective
and Uncertainty
motivations:
AvoidCompeti-
in a masculine
However, none of the four dimensions is related to national economic growth.
Only
for the wealthy
culture,
countries
tend to be individualist)
ism associated
be given to individuals.
Masculinity
ance
loyal-
be given collectively,
should be left up to the
In Individualist
be moved
is more Individual-
with slower economic
and vice versa. If everybody
own thing,
than
the economy
it would
(all of which
if at least
growth
does his or her
grows less quickly
some
individuals
and personal risk is more acceptable if Uncertainty Avoidance is low. Power Distance and
worked for collective purposes. But this study
revealed no relationship
between culture and
Uncertainty
Avoidance
together affect the
image people form of what an organization
should be: larger Power Distances are associ-
economic
ated with greater centralization,
growth that holds true for all coun-
tries, including the poor ones that need such
growth the most.
while strongA Second Case of Culture
The Chinese Value Survey
14
with
formalization.
These scores are
We have chosen our scales in such a
At the company
er Uncertainty
Measurement:
The Rokeach Value Survey is a well-known
questionnaire
developed by psychologist Milton Rokeach for measuring values in American society. In 1979, a group of academic
researchers from nine Asian and Pacific countries administered
a modified version of this
survey to 100 psychology students (50 males
and 50 females) in each of ten different countries. The results of the survey were published
about the same time as those of the IBM stud-
Chinese Value Survey was administered
ies. When the two were compared,
that all four dimensions identified
students
material,
in addition
to a fifth that we have
not been able to interpret,
in the student
projects
between
was
in both samples.
demonstrated
This overlap
in different
two projects
versality
on different
was strong
dif-
populations
The agreement
support
other concern:
by U.S.,
on the results.
Scandinavian
Western
British,
countries.
Our
data
evolved from
French,
and
of them from
The Rokeach
the local
from
pos-
language
the Chinese.
To
dience
as “honoring
to, respect
of parents”).
of ancestors
and obe-
for, and financial
Of course,
support
to the Chinese
mind,
some of the items on the Rokeach Value Surmay have seemed
unusual.
A statistical
analysis
of the 22-coun-
try Chinese Value Survey results based on the
by an-
countries had
this conclu-
Dutch,
researchers-all
plained
for the uni-
search. The IBM questionnaires
directly
se-
Wherever
a Western mind, some of the items seemed
strange, such as “filial piety” (which was ex-
vey or IBM questionnaire
sion obviously also applies to the people who
conceive the questionnaires
and do the rework
made
into
equally
the
of the research-
showed that people in different
different mental programming;
translations
overlapping
however,
the influence
culture
sible,
to 100
in a vari-
in each of 22 countries
lected from all five continents.
between
of the four IBM dimensions.
We were troubled,
ers’ own
the
is remarkable
used completely
years in only partly
sets of countries.
on
that were represented
the two projects
ferent questionnaires
the two re-
(50 males and 50 females)
ety of disciplines
were
overlap
scores of six countries
because
were also present
data.
The
search
it appeared
in the IBM
Value Sur-
vey was a purely
U.S. instrument;
respondents
in non-Western
settings
asked to answer questions
that had
thus
were
been
relative importance
each value
attached
as opposed
in a country
to the other
to
values
again yielded four dimensions. Twenty out of
22 countries were covered earlier in the IBM
studies;
thus we could compare
the countries
the scores of
on each CVS dimension
those for the IBM dimensions.
with
Our findings
were striking: One CVS dimension was very
similar to Power Distance, another to Individualism/Collectivism,
culinity/Femininitycompletely
different
ulations, different
mix of countries.
and a third to Masthis again in spite of the
questions,
time periods,
different
pop-
and different
made up by Western researchers. Can we assume that the respondents’
answers accu-
The three dimensions
common to
the Chinese Value Survey and the IBM stud-
rately
ies are the ones that refer to three types of
reflect
the essence
of their
tures? Some of the questions
own
cul-
may have been
irrelevant to them; others that were relevant
may not have been included. These concerns
led to the development
Survey (CVS).
of the Chinese
Value
Michael Bond, based in Hong Kong,
asked a number of Chinese social scientists to
prepare a list of basic values for Chinese people. This led to the creation
of a JO-item
Chinese questionnaire
that was subsequently
translated into English. Through an international network of interested colleagues, this
15
expected
seniors
social
behavior:
or juniors,
a function
behavior
toward
toward
more
and as
perseverance
and thrift), whereas those on
the right select Confucian
values oriented
the group,
of one’s sex. These represent
tural choices
so fundamental
cul-
to any human
oriented
toward
toward
the future
the past and
the present.
society that they are found regardless
of
whether the values surveyed were designed
called this dimension
by a Western
fucius’ ideas and that its positive
or an Eastern
truly universal
all societies
different
human
share
societies
mind.
They are
traits in the sense that
the same
problems,
but
have “chosen” (historically
rather than consciously)
different
solutions
ies, however,
is missing
from the IBM studin the CVS data: We
did not find a CVS dimension
certainty
Avoidance.
this dimension
a dynamic,
future-oriented
related
We earlier
to Un-
associated
with man’s search for Truth; it
We have
Dynamism”
pole reflects
tradition-oriented
mentality.
Scores
for
pole reflects
mentality,
as its negative
for the countries
One dimension
“Confucian
to show that it deals with a choice from Con-
to
these problems.
(especially
a more
Confucian
surveyed
listed in the last column
wherestatic,
Dynamism
with the CVS are
of Exhibit
2. In dis-
cussing the IBM studies, we showed that none
of the four IBM dimensions
was associated
with economic growth across all countries;
however,
we were stunned
to discover
our new dimension,
another
over the period between
1965 and 1985 across
all 22 countries,
or poor,
quite clearly marked dimension
up of the values
indicated
For countries
dimension,
exhibit
countries
in Exhibit
scoring
made
3.
high on this
strongly
Confucian
that
seems that the Chinese do not believe this to
be an essential issue. However, we did find
associated
with
rich
Dynamism,
economic
is
growth
that
were
covered.
the values on the left side of the
are relatively
scoring
more
important;
for
low, those on the right are
CONFUCIUS AND ECONOMIC GROWTH
more important.
In fact, both the values on
the right and those on the left are in line with
the teachings of Confucius as we described
A glance at Exhibit 2 shows that four of the
them earlier.
and South Korea-hold
However,
select those teachings
“The
the values on the left
of Confucius
that are
Five Dragons - Hong
the “Confucian
Kong,
Taiwan,
Japan,
the top positions
Dynamism”
scale.
on
The next
overlap between the IBM studies and the
Chinese Value Sumey is uemavkable because the
two projects used conzpletely different questionnaires on different populations during different
16
year.
ifi
only
p&y
ove&pping
sets
of counhies,”
Exhibit
3
VALUES ASSOCIATED WITH CONFUCIAN DYNAMISM
The relative importance
Persistence
Ordering
But the relative unimportance
of:
Personal
(perseverance)
relationships
and observing
by status
Protecting
Sweden,
Reciprocation
of greetings,
favors, and gifts
a sense of shame
scores
position.
are found
for Brazil,
and Singapore.
On
the
English-speaking
the
lower
Dynamism”
we find
Australia,
the African
countries
Nigeria;
and the Philippines
New
Chinese
values
questionnaire
and perseverance
before the present boom
started; their belief in tradition
and “face”
composed
We learned
values
tries,
while
from
their
were preferred
other
a
and this was adminis-
values
in 22 counanswers
in some
were
others. We could form dimensions,
that
coun-
preferred
in
clusters of
values that appeared to be associated;
these dimensions we called “Confucian
one of
Dyna-
were known
and
Japanese
tered to male and female students
tries.
by it). The Chinese
and
and Pakistan.
peoples
developthey may
and
social scientists
some
have been reinforced
(although
Britain,
Let’s do a quick recap of what happened:
by the fast economic
ment of certain countries
Zimbabwe
States,
Canada;
the
of “Confucian
do not seem to be recent develop-
ments caused
take a middle
side
countries
United
ues that compose the dimension
India,
The Netherlands,
and West Germany
Zealand,
your face
Respect for tradition
Having
Thailand,
of:
and stability
this order
Thrift
highest
steadiness
(negative on the “Confucian
to value thrift
Dynamism”
scale)
was heavily shaken by the events of the 1940s
and 1950s; therefore, we assume the values to
be at least part of the cause,
growth
and economic
to be the effect.
The logical link between
East Asian entrepreneurship.
the two is
We do not mean
that the values we found are held only by entrepreneurs;
rather,
the way
in which
we
mism.” Thus far, this was a completely psychological
exercise; it was concerned,
not
with business or with economics,
but with
found them (by surveying student samples)
suggests that they are held broadly within entire societies, among entrepreneurs
and future entrepreneurs,
among their employees
culture.
It then appeared
that the country
scores on Confucian Dynamism derived from
and their families, and among members
society as a whole.
this
Let us look again at the values that
compose our “Confucian Dynamism” dimension (see Exhibit 3). If this dimension is somewhat puzzling to the Western readers, they
should not be surprised.
The dimension
is
composed precisely of those elements that
our Western instruments
had not registered;
exercise
are
strongly
associated
with
those countries’ economic growth. Thus we
have found a cultural link to an economic
phenomenon.
As in the case of the association between wealth and individualism,
the causality
could have gone either way. However, the val-
of the
17
a Westerner
important.
further.
would
not normally
find them
Thus we will try to explain
them
label
“Confucian”
could
be somewhat
countries
addition,
in the pursuit
suggests a general te-
of whatever
such
a number
economic
Low endorsement
mis-
of the values
in non-Confu-
dimension
as India
or Brazil.
In
values
including
goals.
the right side of our “Confucian
of core Confucian
goals a per-
or herself,
with the posi-
The values associated
tive (left) side are also found
cian
nacity
son selects for himself
At the outset, we must note that the
leading.
tence” or “perseverance”
facilitates
economic
tecting one’s face, ” if widely
cern, would detract
growth.
shared
“Pro-
as a con-
from getting on with the
such as “filial piety” are not associated with
this factor at all; and finally, the values on the
business.
negative (right) side, as we argued earlier, are
as “Confucian” as those on the positive side.
cerned with good manners
than with perfor-
mance.
for tradition”
Having
should
issued
acknowledge
“ordering
this disclaimer,
we
that the shared value of
relationship
by status
and observ-
The
on
Dynamism”
“reciprocation
of greetings,
favors, and gifts” is a social activity
pedes
Too much “respect
innovation:
part
of the secret
Five Dragons’ economic
with
which
they
technological
success
is the ease
accepted
Western
innovations.
Finally,
“personal
steadiness
dualities
would discourage
the initiative,
and changeability
required
(the “wu lun”). This sense of hierarchy and
complementarity
of relations
undoubtedly
trying
trade.
the vicissitudes
makes the entrepreneurial
role easier to play.
The value of having a “sense of
nant values is a necessary
and interrelatedness
conception
supports
shame”
sensitivity
interrelatedness
to social
contacts.
“thrift” leads to savings,
ability
of capital
ous asset
lie at the heart
of being
which
through
The value
means
for reinvestment,
to economic
growth;
human
of
avail-
an obvieconomists
had been struck by the high savings quotas in
the Five Dragon countries.
Finally, “persis-
and
stability,”
to exploit
Culture
nomic growth;
sufficient
necessary
im-
of the
have
ing this order” is quintessential
Confucianism
in action. As we showed earlier, hierarchical
of the Chinese
more con-
if overstressed,
risk seeking,
of entrepreneurs
of world
in the form of certain
however,
condition
culture
domifor eco-
alone is not
for such growth to occur. Two other
conditions
market and a political
are the existence
of a
context that allows de-
velopment.
The first condition
the growth
of the Five Dragons
explains
why
started
only
after 1955, when for the first time in history
the conditions for a truly global market were
fulfilled. The supportive political context was
fulfilled in all Five Dragons, although in quite
different ways, with the role of government
varying from active support to laissez-faire.
Labor unions were weak and company-oriented in all five countries,
and a relatively
egalitarian
income distribution
meant that
support for revolutionary
social changes was
weak. The Confucian sense of moderation
affected political life as well, in spite of occasional outbreaks
of unrest and violence.
The influence of the political con-
18
text is evident in the country that was the cradle of Confucianism,
the People’s Republic of
China.
So far, data on the Chinese
What
Value Sur-
vey for the People’s Repubiic are missing. We
can only infer that in spite of Maoism, many
the difference
Confucian
tioned
values
ple’s Republic,
remain
strong
in the Peo-
and that those on the left side
of our “Confucian
Dynamism”
currently
at the expense
boosted
dimension
are
of those on
The economic
Republic
The Cultural
1976 was a period
nomic
growth of the People’s
was obviously
nevertheless,
growth
hampered
by politi-
Revolution
of 1966-
of economic
the average
the 20-year
and
Besides
East
(Power
Collectivism,
we found
annual
shrinkage;
rate of eco-
that included
West
Individualism/
Masculinity/Femininity)
Western
Avoidance.
dimension:
As we argued,
deals with
a society’s
uncertainty-avoiding
this
search
cultures
for
believe
in an absolute Truth, and uncertainty-accepting cultures take a more relativist stance. We
also found
one uniquely
over
Confucian
Dynamism;
the Revolu-
dimension
deals with
in the People’s Republic
period
Truth;
men-
to both
Distance,
one uniquely
dimension
and Eastern
previously
common
and
tell us about
Western
the three
dimensions
Uncertainty
the right side.
cal factors.
minds?
did our studies
between
Eastern
dimension,
we believe
a society’s
for
than that of Ja-
Virtue.
pan. It also seems that under the leadership of
Deng Xiaoping, the People’s Republic has let
relates
economic
practical ethics without any religious content.
He dealt with Virtue, but left the question of
tion was still 4.8% or higher
purity.
expediency
It is obviously
prevail
over political
more difficult
to turn
It is no accident
that this
search
to the teachings
described
that this dimension
of Confucius;
them earlier,
as we
he was a teacher
of
around a nation of 1,000 million people than
it is to turn around a nation such as Singa-
Truth
pore, which has a population
of 2.5 million.
So it is not unlikely that the People’s Republic
line in our world that separates
will follow the success of the Five Dragonsalbeit at some distance-and
eventually
be-
cludes the countries
that are traditionally
Judaean,
Christian,
or Muslim - three reli-
come the sixth-and
gions
most powerful-dragon
There
Eastern
Truth.
of them all.
open.
is a philosophical
thinking.
that
The West, in this case, in-
are very
Throughout
much
history,
have been split between
tolerant
WESTERN MINDS AND EASTERNMINDS
currents
dividing
Western from
concerned
these
religions
fundamentalist,
that believe
with
in-
they have the
one Truth and all others are wrong,
and lib-
It is remarkable
that the values dimension aswith the economic success of East
sociated
Asiatic cultures
over the past 20 years was not
found with questionnaires
developed by Western researchers.
It took the Chinese Value
Survey- an Eastern instrument - to identify
this dimension.
This is a powerful
of how fundamental
illustration
a phenomenon
culture
really is. It not only affects our daily practices
(the way we live, the way we are brought up,
the way we manage, and the way we are managed); it also affects the theories we are able
to develop to explain our practices. Culture’s
grip on us is complete.
19
eral, tolerant
humanity,
currents
that put a concern
also present
with
in all three religions,
these technologies
into
cording
to their superior
synthetic
practice
ac-
abilities.
What is true or who is right is less important
above doctrine.
These two trends
in thinking
corre-
spond to the two poles (strong or weak) of the
than what works, and how the efforts of individuals with different thinking patterns can
Uncertainty-Avoidance
be coordinated
represented
dimension.
by Confucianism
Hinduism,
Buddhism,
The East,
but
Taoism,
also
ing can have the Truth.
as partial,
Human
by
and Shinto-
ism, does not assume that any one human
truth
be-
is seen
so that one truth does not exclude
its opposite.
This is why people
in the East
can easily adhere
to more than one religion
or philosophical
school
at the same
time;
and Buddhism,
for example,
coex-
Shintoism
toward a common
nese management,
employees,
especially
is famous
for this pragmatic
thesis. The strategic advantage,
of Eastern
cultures
goal. Japa-
with Japanese
syn-
in this period
that practice
virtue
with-
out a concern for truth, is part of what our research has illustrated.
THE QUEST FOR GLOBAL MANAGEMENT
ist in many Japanese households.
Along this
line of thinking,
a practical,
nonreligious
SYNERGY
ethical system like Confucianism
The IBM values study, in which national
cultural
differences
were measured
across
can become
a cornerstone
of society - more so than in the
West,
we tend to derive
where
ethics
from
religion.
During
that
the
has shaken
Industrial
mankind
years, the Western
concern
Revolution
company.
laws of nature,
which could then be exploited
of the
ton’s laws; they were simply not looking for
them. The Chinese script also betrays this
in general laws: It needs 5,000
characters,
culture does not stop at the gate of the foreign
headquarters
It led to the discovery
different
subsidiaries
within the same mulcorporation,
shows that national
for Truth was at
first an asset.
lack of interest
different
tinational
for the past 200
for the sake of human progress. It is surprising that Chinese scholars, despite their high
level of civilization,
never discovered New-
one for each
syllable,
while by splitting the syllables into separate
letters Western languages need only about 30
signs. We could say that Western thinking is
analytical, while Eastern thinking is synthetic.
By the middle of the 20th century,
the Western concern for truth gradually ceased
to be an asset and turned instead into a liability. Science may benefit from analytical think-
20
putting
ing, but management
and government
are
based on the art of synthesis. With the results
of Western, analytically
derived technologies
freely available, Eastern cultures could start
business
Whether
of multicultural
Cultural
subsidiaries
like it or not,
are
differences
among
Such conflicts
headquarters
the subsidiaries,
the
in the
management.
easily lead to conflicts
porate policies.
between
they
of multinationals
national
over cor-
arise not only
and local managers
but also between
in
headquar-
ters and expatriates from the home country
nationality.
In one U.S. corporation we know,
the head of a headquarters
staff department
complained
bitterly to the president
about
the noncompliance
with certain
rules by the
East Asian regional manager, who was an expatriate American.
“I fully agree,” said the
president. “His behavior is stupid and against
company policy. I have only one question.
From the time he worked in headquarters,
I
have known Mr. X to be an intelligent man.
How can a man be so intelligent in Los Angeles and so stupid in Hong Kong?”
Policy conflicts are less likely to occur in technology and finance, which are rel-
atively
culture-independent,
in marketing
diversity
and more likely
and personnel,
is largest.
where
Multinational
cultural
corporate
be complementary.
Our experiences
with the
Chinese Value Survey are in themselves
ample of cultural
synergy,
because
an ex-
the survey
cultures handle cultural diversity among subsidiaries according to the level of Uncertainty
used a Western research approach with a Chinese questionnaire.
We can also consider the
Avoidance
economic
treme
in their headquarters.
is the position
At one ex-
that “there is only one
success of the five Dragons
of cultural
synergy,
corporate truth, and we have it”; at the opposite extreme the subsidiaries
are run at arm’s
exploitation
length,
ples. Although
without
much attempt
The president
man who steered a middle
cultural
differences
at integration.
we quoted
whom
was a wise
way. He saw that
can easily
nized by overzealous
go unrecog-
headquarters
staff and
can be interpreted
as personality
defects of
the people in the subsidiaries,
whether they
are locals or expatriates.
National cultures
can undoubtedly
to recognize
portunity
Kahn
hypothesis
has formulated
in his book
the neo-Confucian
World Economic Deuelop-
ment: 7979 and Beyond (Croom
the failure
of economics
development
an article
Helm,
to predict
managers
local cultural
of the Five Dragons,
by George
we recommend
L. Hicks and S. Gordon
ding, “The Story of the East Asian’Economic
cle’ ” (Euro-Asian
1983). Michael
book entitled
p/e (Oxford
University
Press,
that the cultural
are necessarily
were first described
Hofstede’s
of a relevant
description
of Organizational
(journal
1984).
article,
The
which
four
dimensions
Do American
(Organizational
Theories
Rokeach
Culture
the
Value
IBM
Dimensions:
in their
Harris Bond
the
modified
article
“Hofstede’s
An Independent
Validation
Value Survey”
Cultural Psychology,
December
of “The Chinese
con-
nese Value Survey
Search
with
Abroad?”
1980).
and Michael
studies
Study
Using Rokeach’s
also a member
Summer
Dynamics,
Geert Hofstede
compared
and Organi-
Apply
entitled
for Culture-Free
(Journal of Cross1984).
Bond was
Culture
Connec-
of an article on the Chi“Chinese Values and the
Dimensions
Psychology,
of Culture”
June 1987).
of the IBM
Culture’s ConseHofstede
“The Cultural
Practices
of International
zation:
in the same au-
Leadership,
tion,” the group of authors
to the psycho-
the idea
countries.
Such an attitude is a luxury that
the management
of a multinational
corporation can no longer afford.
(~oumal of Cross-Cultural
can be found in his book
the author
1983).
1986),
This op-
choices of their own country
superior
to those of other
Peo-
of Confucianism.
quences (Sage Publications,
tivity
of the Chinese
of and references
Geert
studies
Issues 3 and 4,
Business Review),
The Psychology
aspects
RedMira-
Harris Bond is the editor of a recent
tains discussions
logical
the
can be helped
patterns.
may help them overcome
1979). On
or explain
devel-
to Eastern princi-
there is no patent for develop-
synergy,
thor’s article “Motivation,
Herman
originally
oped in the West according
IBM studies
SEI.ECTEDBIBLIOGRAPHY
since it was based on the
of technology
ing cultural
a case
is also
Rela-
and Theories”
Busirzess Studies,
associated
with
Fall
the
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