Your strategic partner in Colombia !!
www.globalminds.co
Colombia vs. United States
Culture Values and Its Effects in Negotiation, Competitiveness and
Communication – June 2011 Author: Fernando Parrado
Abstract
The paper compares Colombian cultural values with the U.S.A values based in Hofstede's National
dimensions. Hofstede defines five dimensions, each one related to an index: individuals/collective (IDV),
equality/hierarchy (PDI), uncertainty/avoidance (UAI) tough/tender (MAS), and time perception (LTO). I suggest
possible cultural values that maintain Colombia-Latin America- in the 69 place in the Global Competitiveness Index
where USA ranks number 2 1. I support the hypothesis with statistics, examples, interviews and personal experience.
Finally, in conclusion, I suggest possible areas of intercultural communication research and practical cultural strategies
that would make Colombian companies, society and government improve communication with American companies.
Keywords: Culture competitiveness, culture and business, culture and global competitiveness, Colombian culture. Latin
culture and competitiveness, Intercultural communication.
This paper is a challenge, because I have to write about my own culture, and I may carry my
own cultural bias. I am Colombian with 10 years living experience in the USA. It is not this paper’s
intention to offend any culture or to judge them. Every culture is right in its own way, and to be
bicultural it is as useful as to be bilingual. In a “global village” to know more about cultural
differences gives intercultural teams the opportunity to be more productive. My hope is that
increased awareness about the cultural values and differences between Colombia and USA will help
1
http://www.weforum.org/en/initiatives/gcp/Global%20Competitiveness%20Report/index.htm
1
Your strategic partner in Colombia !!
www.globalminds.co
bi-national negotiation, bi- cultural job environments and lead to more competitive practices in
Colombia.
Although Latin American countries all speak Spanish, cultural differences exist among and
within each of them. Each Latin country has its own particular history, and cultural background.
Colombia is a result of the Indian, Spanish, African, French and lately (North) American heritage.
The paper compares Hofstede's dimensions of culture between Colombia and USA ranked
from greatest to lowest areas of difference. The greatest area of difference is Individualism followed
by uncertainty avoidance, power distance, masculinity and time dimension.
1. Individualism index (IDV): Colombia: score 13 / USA score 91. Difference: 78.
Colombia and USA Scored extremely differently in the individualistic dimension. The
IDV index is associated with collective versus individualist society. A scored of 13
indicates that Colombia as a more collective society than the USA. USA, scoring 91,
ranks as the most individualistic society in the world. There is a clear necessity for
training in intercultural communication, because different relationship styles and
communication patterns can generate conflict and misunderstanding. There are at least
three areas in which Colombia can learn from Individualistic societies to improve its
competitiveness: Efficient communication, task achievement, and talent development.
 Efficient communication:
“In individualistic societies speaking one’s mind is a
characteristic of an honest person. In collective societies, harmony must always be
2
Your strategic partner in Colombia !!
www.globalminds.co
maintained and direct confrontation avoided2”. Colombian soap operas demonstrate this
well. A direct confrontation that can hurt somebody is always avoided in Latin soap operas.
Additionally, in the United States, people speak directly to the point and in Colombia they
avoid this. “No” has an honest connotation in the American business world. For a Latin
American a “No” can hurt relationships, the word must be avoided in Colombia. An
American in Colombia can waste a lot of time with an avoided/non answer, such as “the
committee is analyzing the subject,” “call tomorrow,” “people are busy,” or “I forgot.” All
these answers could mean “no” in Colombia but have a different meaning in the US. An
example of how Colombians probably won’t do so directly and American people may get
very impatient. Sometimes Americans will think that Colombian are lying. On the other side,
Americans speaking straight to the point could be considered, by Colombians, impolite and
in some cases could lead to uncomfortable situations. This cultural difference affects the
competitiveness, because Colombians sometimes won’t say what they mean, and it leads to
communication problems. Also it takes more time to get to the point and communicate ideas
in Colombia.
 Task achievement. “In individual societies tasks prevails over relationships. In collective
societies relationships prevails over tasks.”3 There may be nothing more frustrating for an
American than a Colombian regular business meeting. For example, an American working in
Colombia told me that in general she will set the appointment to start 5 or 10 minutes late
and to finish 10 or 5 minutes late. There will always will be an introduction and time to speak
2
3
Culture and organizations. “Software of the mind”. Geert Hofstede.2005. Table 3.2 Page 92.
Culture and organizations. “Software of the mind”. Geert Hofstede.2005.Table 3.4 Page 104.
3
Your strategic partner in Colombia !!
www.globalminds.co
about something other than business. As Samuel Guy Inman reports “A Latin- American can
make the most delightful friend and yet the most exasperating member of a commercialized
order, for his values are carried over into his business life”.4 A regular business meeting could
include updates about personal life and relationships. This will make Colombian meetings
inefficient and the same meeting would be perceived by the American culture to be a waste
of time. Further demonstrates the time and training requires for adaptation to understand
different communications patterns. This cultural difference affects the Colombians’
competitiveness; because tasks accomplishment takes longer, schedules are unreliable work
and deadlines are rarely follow with the same sense of urgency as in the USA.
 Talent development. “In individualistic societies, people know more about themselves than
about others. In collective societies people know more about the others than themselves” 5.
The following example shows the language as reflection of cultural difference in this
dimension. The Spanish world “querer”, “Querer” it is not want, like or loves. It is a feeling
that defines less than love and defines close relationships. The Spanish word “amigo” is very
close to the feeling “querer”. Friends are a very important part of the Colombian values
system. Also, a common normal question in the US for college students in selecting a career
or field is “what do you enjoy?” This would be inadequate in Colombia. This concept it is not
the same for the Colombians. Colombians’ careers choices are frequently influenced by their
parents and friends. Colombians constantly struggle just to survive and make a living out of
their chosen careers. In individualistic societies the members consider where their talent lies
4
5
Samuel guy Inman, Latin America its place in World Life.1942. Perspectives and Characters mold pg 29.
The Cultural Dimension of International Business. Gary P Ferraro. 2005. Chapter 5 page 102..
4
Your strategic partner in Colombia !!
www.globalminds.co
and then develop these talents. Colombians often know a lot more about other people than
themselves and they will try to use this insight to develop relationships. Colombians always
want to help other friends or family members. Cultural training it is needed because
friendship and relationships in business are more relevant in Colombia than in the US.
Additionally, in Colombia, nepotism “amigos” is a normal part of the cultural behavior. This
cultural difference affects their competitiveness and the innovation, because Colombians may
not look for the best deal but for the best partner or friend. Colombians have problems to
recognizing and developing their own talents.
It is a great need of cultural training to understand in this dimension because of the
strong differences between the Individualistic USA and the Collective Colombia.
Colombians working with Americans need to learn to speak directly and to the point.
Americans working with Colombians need to learn to focus on developing a friendship
while conducting business. Americans who want to create a successful business in
Colombia will have to understand the friendly Colombian behavior aspects. In the area
of competiveness and innovation, Colombians have to recognize and develop talent
better, have efficient communication and focus on accomplishing tasks quickly.
Finally the Globe6 study had been describing two aspects of this dimension: Groups
collectivism and Institutional Collectivism. Hofstede dimension match Group
collectivism. In the Glove institutional collectivism Colombia rank opposite to USA,
been Colombian more individualistic than USA. Further study about Institutional
6 Culture, Leadership, and Organizations: The GLOBE Study of 62 Societies, Dr. Robert J. House, Dr. Paul J.
Hanges, Dr. Mansour Javidan, Peter W. Dorfman, Dr. Vipin Gupta, 2004. Sage Publications, 2004.
5
Your strategic partner in Colombia !!
www.globalminds.co
Collectivism based in Globe study and other authors need to be done to see how much
impact communication and productivity the Institutional Collectivism.
2. Uncertainty Avoidance Index (UAI).
Colombia: score 80 / USA score 46.
Differences: 34
Colombia and USA scored very differently in the Uncertainty Avoidance dimension.
The UAI index represents the way that societies differ in their tolerance of the
ambiguous and the unpredictable. Colombia’s UAI score is 80, indicating a society
less tolerant of the ambiguous and the unpredictable, than the USA, which scored 46.
A cultural trained it is need in these dimension because these differing attitudes
could create a leader’s frustration. Colombians can learn from low uncertainty
avoidance societies about to improve their competitiveness in the following areas:
Regulatory environment, Work group, and innovation.
 Excessive regulatory environment. : “In strong uncertainty avoidance societies many
and precise laws or unwritten rules and laws are necessary, even if they cannot be
respected. In weak uncertainty avoidance societies few and general laws or unwritten
rules exists and if laws cannot be respected, they should be changed.”7 Samuel guy
Inman, US ambassador in Latin-American, gives us an excellent example about this
cultural difference. He tell us about his experience the in the Pan-American conference:
“Latin Americans believe that the conferences ought to face fundamental principles to
bring the American continent together: define first of all the rights and then lay down
7
Culture and organizations. “Software of the mind”. Geert Hofstede.2005. Table 5.5. Page 194
6
Your strategic partner in Colombia !!
www.globalminds.co
rules concerning arbitration, recognition for governments, attitude toward extracontinental powers and codification for international law. The United States delegates,
on the other hand, believe that the way the continent together can be best be brought
together by practical measures that will improve commercial exchange.”8 Colombians are
theoretical; they like to discuss and sometimes they could be idealistic about rules.
Colombia has more rules than the US but they do not follow them. US has fewer rules
but they are more closely followed. A cultural trained it is need because Americans will
find more rules to start/finish a business, to deal with government in Colombia, rent an
apartment, and to do an event and they will need to understand how to follow.
Sometimes Americans will find rules that are not being followed and will get confused.
Americans will need a good
lawyers to understand how to work successfully in
Colombia. Colombia could improve competitiveness if it can create a less regulatory
environment to help speed up business.
 Work group achievement. “Countries with strong Uncertainty avoidance have strong
superegos developed”9. Super ego may give the appearance vanity and the assumption
that everybody is looking at you. A Colombian customer told me that he prefers to buy
foreign products because in Colombia we produce one product and nobody offers ideas
about how to build the parts. At least for goods that come from outside Colombia I will
find the parts,” he told me. It seems that an individual has a good idea but he/she is not
able to share it because they are scared that the idea will be stolen by somebody else. On
8
9
Samuel guy Inman, Latin America its place in World Life.1942. Perspectives and Characters mold pg 23.
Culture and organizations. “Software of the mind”. Geert Hofstede.2005. Table 5.2 Page 176
7
Your strategic partner in Colombia !!
www.globalminds.co
the other hand, this protective approach could lead to strong individualistic expressions
and a lack of standardization. In the work environment, Colombian employees may not
been willing to share ideas because they believe they have the best one and somebody
else may steal it. Also, in a work environment they may fight for recognition. Because
open expression of emotion is acceptable in a Colombian work environment, conflicts
easily arise because passion and emotion are attached to ideas. Passion jeopardizes
negotiation and rises level of conflict. Finally, in collective societies, criticism is common,
and in Colombia people are more likely to only give positive feedback. This leads to slow
group achievement. This Dale Carnegie quote tells us about a generalized mindset in the
USA: “Any Fool can criticize, and complain and Most Fools do”. Excessive feedback
could kill good initiatives and new enterprises. It is a need of cultural training because
workgroup dynamics are different between Colombia and the USA. This cultural
difference could improve competitiveness if Colombians gave less “positive feedback”
and support more new ideas.
 Innovation. “Countries with strong Uncertainty avoidance have more religious, political
and ideological intolerances at the other side in weak uncertainty avoidance countries
nobody should be persecuted for their beliefs”10. Researcher concluded that uncertainty
avoiding cultures were slower in innovation11. Colombia is a society that fears new ideas
and theories. New software and technologies would take time to implement and “the old
way could be better in Colombia”. It is a need for cultural training about Colombia
10
11
Culture and organizations. “Software of the mind”. Geert Hofstede.2005. Table 5.6 Page 203
Scott Shane, Culture and organizations. “Software of the mind”. Geert Hofstede.2005.
8
Your strategic partner in Colombia !!
www.globalminds.co
because Americans must be careful to expose new ideas and they need to know how to
invest the time to support these new ideas. Acceptance of new ideas could be difficult and
replacing the old paradigm could take time. The right leaders and training would help to
avoid frustration and irritation. Competitiveness will definitely improve once Colombians
understand this weakness and adopt technology quickly.
It is a great need of cultural training about Colombia because Americans need to
understand the regulatory environment, and workgroup specific cultural dynamics. The
field of competiveness could be improved if Colombian companies would take more
risks, the government created more business-friendly regulations, people would be
aware of egos in workgroups and innovative ideas could be supported.
3.
Power Distance Index (PDI). Colombia: score 67/USA score 40. Differences: 27
Colombia and USA scored differently in the Power Distance dimension. Power Distance
Index score informs us about dependence relationships in a country. A high PDI
it is
related to a hierarchical society and a low PDI to an equalitarian society. A 67 score
indicates that Colombia is more hierarchical than the USA that ranks at a PDI in 40. In
Colombia less influential members of institutions and organizations, understand and
accept that power is distributed unequally. Again Cultural training it is needed because
communications and workgroup behavior are different under the social levels. Colombia
can learn from more equalitarian societies to improve its competitiveness looking into:
people development, organizational climate and decision process.
9
Your strategic partner in Colombia !!
www.globalminds.co

People development. “In hierarchical societies Inequalities among people are expected
and desired. In equalitarian society inequalities among people should be minimized12.”
The Spanish language as an example of cultural differences has words such as “Doctor”,
“Don” o “Doña”. Words that have no translation in English but mean a level of respect
that you give to people in Colombia. A word like “estrato” in Colombian Spanish is very
difficult to translate in to English. The “estrato” indicates somebody with a certain level of
income. Estrato could be important in job applications and looking for business partners.
Colombian inequality means less hope for less lower “estrato” people like maids,
watchmen, construction workers and peasants. They expect that you treat them with
inferiority, and they will give respect to upper class people like doctors or political figures.
It is a need for cultural training in Colombia for foreign people because Colombian
outsiders must be careful with older people and people in different hierarchies; they must
be treated with the adequate respect. This respect must be used in negotiation and day to
day operations. American people need to understand small clues in the day-to-day
operations such as neighborhoods, universities or club references that indicate how must
be address to people. References indicate the status of the person, how you must address
them and how they expect to be addressed. Competitiveness could be improved if talent
development and advance were more even for everybody in the society’s level.

Organizational Climate. “In hierarchical societies there is a wide salary range between
the top and bottom of the organizations”13. In equalitarian society “there is a narrow
12
13
Culture and organizations. “Software of the mind”. Geert Hofstede.2005. Table 2.3 Page 57
Item. Table 2.4 Page 52
10
Your strategic partner in Colombia !!
www.globalminds.co
salary range between the top and bottom of the organization”. The Gin14 ranks USA at
40.8 and Colombia at 57.6. The GIN index shows an inequality of income distribution to
be higher in Colombia than in the U.S. For secretaries, labor workers, watchmen, and, in
general, salary ranges between lower levels of an organization and uppers levels will have
wider differences in Colombia than in the USA. This wider income range leads to an
increase in the size of the population living in poverty and to a larger part of the
population that is dissatisfied. This can lead to low work motivation and commitment
within a company. Competitiveness could be improved if salaries had a smaller
differential, leading to increased work motivation and commitment within a company.
Also if a different real by performance system will be used to award employees could
generate a more equalitarian vs. talent society.

Decision process. “In hierarchical societies subordinates expect to be told what to do.
In an equalitarian society subordinates expect to be consulted.”15 In daily job operations
could be possible that lower ranking subordinates won’t give feedback to his American
boss. They will be scared because it can jeopardize their jobs. Colombian subordinates
expect that their boss does not want their authority challenged, and they won’t give
opinions. In companies with a very pyramid-hierarchical organization, decisions could
take more time because they have to be approved for each boss and lower ranking are not
accustom to have responsibility take decisions. Subordinates will be scared to make
decisions. American must be aware of the appropriate role(s) within organizations. In
14
Gini measure of inequality of income distribution. The Gini index measures inequality over the entire distribution
of income or consumption. A value of 0 represents perfect equality, and a value of 100 perfect inequality..
15
Culture and organizations. “Software of the mind”. Geert Hofstede.2005. Table 2.4 Page 52
11
Your strategic partner in Colombia !!
www.globalminds.co
Conclusion, Colombian decision-making may take a longer time, and feedback from the
subordinates won’t be given to the American boss. Competitiveness could be improved if
subordinates’ ideas were considered by the people in power.
It is needs for cultural training, because Americans must be aware of class differences
and comply in each situation according to his/her position. The right words and non
verbal signs must be used to show people that you are respectful. People in higher
positions need to be utilized as resources to reach people for business purposes. Finally,
talent does not need to come from the “right” university or neighborhood; good ideas
must be taken in consideration if they are coming from lower levels, and decisionmaking can be faster if people are empowered.
4.
Masculinity Index (MAS). Colombia: score 64/USA score 62. Differences: 2
Colombia and USA scored almost equally in the Masculinity dimension. MAS represent
a Masculine or Feminine society. A score of 64 for Colombia indicates that it is slightly
more masculine than the USA, which scored 62. Although we had found that Colombia
swings between feminine and masculine and, in some characteristics, differs strongly
from the USA. Because a fundamental difference in relationship and meaning of life,
this value have to be a target of cultural training because impact the personal lives of the
American executives working in Colombia. Following some values where Colombians
are more feminine and masculine.
Areas where Colombia seems more feminine than the USA:
12
Your strategic partner in Colombia !!
www.globalminds.co
•
Negotiation behavior: “Challenge, earnings, recognition, and advancement are important
in Masculine societies16” and in Feminine societies “Relationships and quality of life are
important.17” Also, in masculine societies, “man should be assertive, ambitious and tough
and feminine both and men should be modest”. Colombian people seems more feminine
than USA behavior in this characteristic. Samuel Guy Inman tells as example of salesman
attitude of the North American that might be inadequate in South America”18. Samuel Guy
Inman wrote that an American seller “Open[s] his samples, and using high pressure
methods, convinces the merchant to agree to the price of the article and walk out with an
order. But many a smart young fellow from North America has found that such tactics are
futile in South America. Also, a society that values earning could tend to dominate the
negotiation, and North Americans may have this attitude. It is a huge need for cultural
training negotiation because of the different approaches to negotiation. Americans
companies tend to see things in a win/win model, and Colombians tend to look for winlose partnerships based in Cultural negotiation patterns learn by tradition19.
 Meaning Work “People work in order to live in feminine societies, and people live in
order to work in masculine societies.20” A paragraph of Samuel Guy Inman illustrates the
Latin American position with respect to this index. “… Latin America life will probably
continue to be a sense of timelessness, an emphasis on the worth of personality, an
instinctive protest against the idea that success in business and the accumulation of wealth
16
Culture and organizations. “Software of the mind”. Geert Hofstede.2005. Table 4.2 page 132
Item.
18
Samuel guy Inman, Latin America its place in World Life.1942. Perspectives and Characters mold pg 31.
19
Como Negocian los Colombianos, Enrique Ogliastri. Universidad de los Andes. AlfaOmega 2001.
20
I Culture and organizations. “Software of the mind”. Geert Hofstede.2005. Table 4.5 Page 147
17
13
Your strategic partner in Colombia !!
www.globalminds.co
are superior accomplishments to the acquisition of culture, an insistence that to enjoy life
one must renounce whatever rob him independence. In other words, it is life itself, not its
position or achievements, that it is most worthwhile. Being what you want to be is more
important that getting what you want.21” The text shows that Latin America it is a more
feminine society than USA according to Hofstede definition about feminine societies.
Areas where Colombia seems more masculine than the USA:
Tough religion. “ The general trends for religions, and current within religions have taken
different positions toward the pleasure side of sex . Masculine Roma Catholicism had rejected
sex for pleasured to stress procreation in the other side Protestant did away with celibacy, did not
consider marriage a sacrament and accepted divorce”22. Colombia is considered a very catholic
country and religious views are important in daily life, 81 to 90% of the population is Catholic23.
In the other side the U.S has a 51.3%24 of protestant followers.
Although Colombia and U.S scored similarly in this dimension, it is a need for
intercultural training because Americans and Colombian’s have different life
approaches about work, negotiation and emotional involvement. The meaning of work
is a tremendous area to intercultural training because it is fundamental in the
Colombian value system to be able to work to enjoy life. These areas can be seen as a
tremendous value of diversity. I believe that this particular characteristic of this
21
Samuel guy Inman, Latin America its place in World Life.1942. Perspectives and Characters mold pg 29.
Culture and organizations. “Software of the mind”. Geert Hofstede.2005. Page 155
23
Wikipedia, 2011, search about Colombia.
24
Item.
22
14
Your strategic partner in Colombia !!
www.globalminds.co
dimension has the potential to enrich each one of the countries involved. Finally
American professionals that don´t understand this value can be impact in their
personal lives in Colombia that can compromise and impact the foreign assignment in
Colombia.
5. The time dimension (LTO) LONG TERM ORIENTATION
INDEX.
Colombia: score
13/USA score 29. Differences: 16.
Hofstede gives Colombia a score of 13 for LTO and 29 for USA. However, I will refer to
the work of Gary P Ferraro25 to understand Colombian time dimensions, because it
makes more sense based from my personal experience. Mr. Ferraro identifies precise
approaches to time, such as the time characteristics of sequential vs. synchronized
communication – a variation amongst different cultures. Different approaches to time
have a strong potential for conflict because a dramatic difference jeopardizes business
relations. The time perception will be divided in precise reckoning of time, and
sequential vs. synchronized communication. The time dimension difference effects the
competitiveness of Colombia in the following areas: meeting effectiveness, strategy
planning, and goal achievement.
a. Meeting effectiveness. “Cultures with precise-reckoning of the time, where time it is a
resource that must be saved and time is scarce and limited. In cultures with loose-
25
The Cultural Dimension of International Business. Gary P Ferraro. 2005. Chapter 5 page 117.
15
Your strategic partner in Colombia !!
www.globalminds.co
reckoning of the time little punctuality it is loose and time is plentiful26”. Colombian
conception of time is identified with a loose-reckoning perception. Samuel Guy Inman, in
one of his chapters with the title Poets vs. Engineers. Poets, tries to show us the different
relation with time the two cultures have. Poets are friends with the time and Engineers
measure time really well. Additionally, every North American interview during the studies
agrees on these differences. They agree that almost any appointment in Colombia must be
followed with a confirmation call and many times the appointment must be changed and
rescheduled. This behavior is very unusual in the USA. North Americans sometimes are
misunderstood as aggressive and impolite by Colombians because they hurry to do things
and not lose time.. It is a need for cultural training because the Americans do things
quickly and in a calculated manner, which could be misunderstood by Colombians.
Finally, a quote of Samuel Guy Inman “The gulf that may for the Anglo-Saxon separate the real
and the ideal seems for the Hispanic scarcely to exist27” illustrates the ability of the Latin mind to
make an ideal situation, forgetting about the real time constrains. It is a need for cultural
training because they are two very different approaches to time. The area of
competitiveness Colombians needs clearly to understanding their time perception
so they can improve planning time and effectiveness of meetings.
b. Goal achievement. Mr. Ferraro identifies sequential vs. synchronized societies:
“Characteristics of Synchronically Oriented societies it is to do multiple tasks at a time and
26
27
Item.
Latin America it`s place in world life. Samuel Guy Inman Harcourt Brace and Company. 1942. U.S.A
16
Your strategic partner in Colombia !!
www.globalminds.co
they can be easily distracted.” I am in Colombia after living ten years in the USA, and it
seems to me that everybody tries to handle many conversations at the same time. Of
course with multiple conversations at one time, people can easily forget commitments. In
the U.S.A. it seems to me that people talk to one person at the time and they keep
commitments. It would save a lot of time for Colombians to remember commitments,
deadlines and appointments.
It is a needs of cultural training because different perception of time, and uses of
sequential vs. synchronized time. Negotiation practices would be improved if
Colombian companies understood USA time perception and concentrate on one
conversation at a time.
In summary the root of less competitiveness in Colombia is directly to its cultural
background. Even if there are a lot of potential areas for improvement in
competitiveness, these are very important cultural views of life that are difficult to
change. These views of life could be the sacrifice of Colombian cultural values. Some
characteristics like feminine and time perception will imply to change very important
facts of life that Latinos have deeply rooted in their souls. They are fundamental parts of
the Colombian life. It is a great opportunity for cultural training and research in the
individualistic, uncertainty avoidance, power distance, masculine and time dimensions
between Colombia and USA that will improve bi-national negotiation, expatriates in
Colombia and bicultural job environments.
Fernando A. Parrado H
17
Your strategic partner in Colombia !!
www.globalminds.co
fernando.parrado@gmail.com/fparrado@globalminds.co
18