BUSINESS EDUCATION IN "DYNAMIC SOCIETIES“
Are there basic business
values that differ
from country to country?
Prof. Vesselin Blagoev
07/04/2015
1
For best management model go ahead
Dutch vs French management

Gerard van Schaik at CEEMAN 2003 annual
conference (Chairman of Martinair/Heineken/EFMD):
There was not a single example of a successful
French-Dutch joint venture for the differences
between French and Dutch national cultures. Dutch
employees were unhappy in each case of a new JV
because of the authoritarian French management,
which is strongly resented in the Netherlands.
Blagoev (2010, p.22)
07/04/2015
3
French view on
Dutch management
We came to
a consensus
how to
manage
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The new cultural
environment
National
culture,
values and
norms
Here we
live and
teach
Additionally
taught and
accepted
professional and
religious values
and norms
Influence of new
technologies
(Internet,
Google, mobile Other norms accepted as a
result of globalization
coms)
Blagoev (2014)
5
Cultural map of the world
Minkov, Blagoev & Hofstede (2013)
49 countries,
clustered by
cultural
factors
(№198-208 от
WVS)
Journal of Cross-Cultural Psychology (2013) 44, p.1100
Are customers different?
Uncertainty
avoidance index
For 22 of all 23 countries we find out, that
Hofstede cultural dimensions’ index coincide with our
observations about the prevailing customers’
preferences.
120
UAI+
60
Greece
Style
Design
Fashion
Portugal
France
Russia
Renault
Citroen
Peugeot
Technology
Innovation
Belgium
Audi, VW, BMW
Spain Alfa Romeo
Japan
Italy
Bulgaria
Austria
Germany
Swiss
Finland
Nederland
Norway
Poland
USA
Ireland
UAI-
Sweden
Denmark
0
Security
UK
Functionality China
Volvo
07/04/2015
FEMININE
0
SUV
Singapore
50
Blagoev (2014, p.66).
Power
Recognition
Big
MASCULINE
Major motives
when buying a
car
Calculated based on the idea
of De Mooij (2010)
7
100
Buyer behaviour model
in case of low involvement
Global
environment
influences
Problem or
external stimuli
Blagoev (2014, p.56)
Marketing stimuli such as
ads, promotions, etc.
Comparison
Purchase
8
Map of cultures by UAI and PDI
Calculated using the Hofstede indexes for these countries
Singapore
07/04/2015
Blagoev (2014, p.67)
9
Map of cultures on UAI and PDI


Quite many commercials in Russia are based
on emotions, i.e. “Where we are desired“
(„Там где нас ждут“) and “The time goes
on… We remain ourselves.” („Время
течет... Мы остаемся собой...“) and
obviously this has positive effect on the sales
In Bulgaria the ads/commercials which use
celebrities are less successful compared to in
other countries.
07/04/2015
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Culture and Advertising

For cultures with high Uncertainty
Avoidance Index: ads with more details,
elements of scientific proofs/tests,
professional advise about quality, seem to
be more successful. Key words such as
„clean“, „tested“, „fresh“, „certified“,
„licensed“, „accredited“ help to consider the
product as lowering the risk and therefore better.
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11
Culture and advertising

For Short Term Orientation Cultures, i.e.
USA, and for the countries with high
percent of customers with low income, the
ads claiming fast effect and/or profit seem
to be more efficient. Very often the appeal
is: „Buy now and save...“, „Promotion ...%“,
„The lowest prices in ...“, „Do not wait“ .
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Cultures and Advertising
In the cultures with high Masculinity
(success above all) the ads claiming
uniqueness, such as №1 in the world, .......,
seem to be more efficient. Very often the ads
claim: „№1 in .........“, „Be the first“, „Win now“,
„The winner takes it all“, „Simply the best“,
„The dream comes true“ and the like. The
hyperbolizing of the brand/product is not based
on evidence, but on the claim that. Still it works
in such cultures
07/04/2015
13
Cross-Cultural
Sociogenetics:
The Case of Serotinin
Minkov, M., Blagoev, V. & Bond, M. (in press). Improving the
Emerging Field of Cross-Cultural Sociogenetics: The Case of Serotinin,
Journal of Cross-Cultural Psychology.
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Linking Cultural Traits to Prevalence
of Genetic Polymorphisms

Genetic differences at the population level
can account for societal differences in values,
personality, cognitive abilities, and behaviors.
Hofstede and McCrae (2004) showed that
measures of personality traits aggregated to
the national level are highly correlated with
dimensions of national culture extracted from
measures of values and beliefs.
07/04/2015
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Linking Cultural Traits to Prevalence
of Genetic Polymorphisms


A number of genes that regulate brain activity or
brain size, such as the serotonin-transporter gene
(SLC6A4), the dopamine-transporter gene (DRD4),
and microcephalin (MCPH1), have been found to be
highly polymorphic and the worldwide distributions
of the polymorphisms create clear geographic
patterns.
All reliable dimensions of national culture reported
so far define clearly distinguishable geo-economic
patterns (Dobson & Gelade, 2012; Minkov, Blagoev, &
Hofstede, 2013).
07/04/2015
16
5-HTTLPR S-Allele
Prevalence Across Nations


Holmberg and Lesch (2011) point out that the S
allele is associated with enhancement of a wide
range of cognitive functions, notably improved
decision-making through better probabilistic and
temporal discounting.
Chiao and Blizinsky (2010) and Murdoch et al.
(2013) show that the worldwide variation of the
prevalence of the S allele is quite great - ranging
from about 12 percent of all 5-HTTLPR allele
occurrences among the African Mbuti to about 80
percent
in some populations in East Asia
07/04/2015
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5-HTTLPR S-Allele
Prevalence Across Nations
No
5
6
Findings
National IQ (Lynn, & Vanhanen, 2002, only
study-based scores)
.58**
(n = 47)
Same, after controlling for GDP per person in
1999 (UN Statistics Division, 2009)
.62**
(n = 45)
Average national school performance in
mathematics in the 8th grade in 2003 (Mullis,
.73**
(n = 25)
Martin & Foy, 2005)
Same, after controlling for GDP per person in 1999
(UN Statistics Division, 2009)
7
Correlation
Average national school performance in
mathematics in the 8th grade in 2007 (Mullis,
.64**
(n = 21)
.64** (n = 24)
Martin & Foy, 2007).
Same, after controlling for GDP per person in 2005
07/04/2015
(UN Statistics Division, 2009)
.63** (n = 20)
18
5-HTTLPR S-Allele
Prevalence Across Nations
No
8
Findings
Correlation
Confucian work dynamism /Long term .81** (n = 19)
orientation (Chinese Culture Connection,
1987)
9
10
Long-term orientation (Minkov &
.76** (n = 22)
Societal hypometropia (Minkov, 2011, 2013)
-.60** (n = 52)
Hofstede, 2012)
Same, after controlling for GDP per person in 2005 -.62** (n = 49)
(UN Statistics Division, 2009)
-.74** (n = 49)
Same, after controlling for GINI in 2004-2010
(Central Intelligence Agency, 2012)
Same after controlling for GDP per person in 2005 -.73** (n = 48)
07/04/2015
and for
GINI in 2004-2010 at the same time
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Leaders’ styles
20
Leadership
Contingency theories

Fiedler Contingency Model: Favorability

of leadership situation
Hersey & Blanchard’s Situational Theory
(Maturity of followers)
Vroom & Yetton: Leader-Participation
(Quality and acceptance of leader’s
decisions)
House and Dressler: Path-goal theory

Leader-Member Exchange Theory


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Leadership Contingency theories
Leader-Participation Model


Vroom & Yetton: 5 main management
decision styles:
Autocratic



Consultative
C.1: problem is shared individually with relevant
subordinates. Then L makes the decision
 C.2: problem is shared with subordinates as a group, then
L makes the decision
Group – the problem is shared with sub as a group. L acts
as Chair, not as advocate. All make the decision
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

A.1: Leader solves/makes decisions alone
A.2: Leader gets information from subordinates but makes
the decisions alone
Leaders’ styles
‘An array of clubs
in a golf pro’s bag’
(Goleman, 2000)
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Six Leadership Styles
‘An array of clubs in a golf pro’s bag’ (Goleman, 2000)
Style
In practice
Coercive Demands
compliance
Authoritative Mobilizes people
In a phrase
Competencies
‘Do what I tell you’ Drive to achieve,
self control
‘Come with me’
Self-confidence,
change catalyst
Affiliative
Creates harmony
‘People come first’ Empathy,
Democratic
Forges
consensus
‘What do you think’ Collaboration,
Pacesetting Sets high
communication
teambuilding
‘Do as I do, now’
Initiative, drive to
achieve
‘Try this’
Empathy, selfawareness
standards
Coaching
Develop people
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What should we do
in the ‘dynamic
societies’?
07/04/2015
25
Teach many and make sure
we teach the best match

Present different
management models,
but make sure we teach
that/those which match
the cultural specifics. I
would speculate that
Henri Fayol matches
better the Russian
culture than HR
theories, i.e. Elton Mayo
07/04/2015
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Will teach and
apply the best
model
Mamma mea!
Which is the
best model?
Who was the
idiot to claim
this is the best
model?
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Academic exchange



Exchange students for 1-2 semesters.
Exchange lecturers for 2-4 weeks
teaching
Organize video-conferencing seminars
…and the best models will be taught
07/04/2015
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The new bachelor knows
the best model
After trying to apply the
best model
29
10x a lot

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List of sources
Blagoev, V. (2010). Culture: Values, Beliefs, Perceptions, Norms and Behaviors, in Going
Global: Practical Applications and Recommendations for HR and OD Professionals in the
Global Workplace, ed. by Lundby, K.(2010), Jossey-Bass, p.22-40.
Blagoev, V. (2014). The New Marketing, Zangador Publishing, Varna
De Mooij, M. (2010). Global Marketing and Advertising, Understanding Cultural
Paradoxes, Sage, p.102.
Hofstede, G., Hofstede, G.J. & Minkov, M. (2010). Cultures and Organizations: Software
of the Mind, (3rd ed), McGraw-Hill
Inglehart, R. & Welzel, Ch. (2010). "Changing Mass Priorities: The Link
Between Modernization and Democracy." Perspectives on Politics, June
2010 (vol 8, No. 2), page 554.
Minkov, M. (2007). What Makes us Different and Similar, Klasika Stil.
Minkov, M., Blagoev, V. & Hofstede, G.(2013). The Boundaries of Culture: Do Questions
about Societal Norms Reveal Cultural Differences?, Journal of Cross-Cultural Psychology
(2013) 44, p.1100
31
List of sources



Minkov, M., Blagoev, V. & Bond, M. (in press). Improving the Emerging Field of
Cross-Cultural Sociogenetics: The Case of Serotinin, Journal of Cross-Cultural
Psychology.
Nooh, M., Shukor, S., Aziz, R., Khairi, K. & Abdullah, M. (2014).
Relationship between Religiosity andControversial Products and
Offensive Nature of Advertising Appeals, Journal of Marketing
Management, June 2014, Vol. 2, No. 2, pp. 113-128.
Sood, J. & Nasu, Y. (1995). Religiosity and nationality: an exploratory
study of their effect on consumer behavior in Japan and the United
States, Journal of Business Research, 34, 1-9.
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WVS factors 2005-2008
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






V198. Claiming government benefits to which you are not
entitled
V199. Avoiding a fare on public transport
V200. Cheating on taxes if you have a chance
V201. Someone accepting a bribe in the course of their
duties
V202. Homosexuality
V203. Prostitution
V204. Abortion
V205. Divorce
V206. Euthanasia: ending the life of the incurably sick
V207. Suicide
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