University Of Finance & Administration
INTERNATIONAL BUSINESS
[E_IB]
PhDr. Karel Eliáš, CSc.
18303@mail.vsfs.cz
Lecture content
CULTURE in the business
6.
INTERNATIONAL BUSINESS [E_IB]
PhDr. Karel Eliáš, CSc.
18303@mail.vsfs.cz
CULTURE DIFFERENCES
= impact of culture on relationship, employees
approach to work, business management and
negotiations
-> this impact is much > than differences coming out from:
o
RACE
o SEX
o specialization [PROFESSION]
o POSITION
7.
INTERNATIONAL BUSINESS [E_IB]
PhDr. Karel Eliáš, CSc.
18303@mail.vsfs.cz
CULTURE and it’s elements
CULTURE
= characteristic way of living
= based on ACQUIRED models of behaviour (i.e. learnt,
not inborn)
Culture ELEMENTS
 ABSTRACT (values, approaches, opinions, religion from generation to generation)
 MATERIAL (stage of development and types of:
technology, structure of consumption in a country /
society )
INTERNATIONAL BUSINESS [E_IB]
PhDr. Karel Eliáš, CSc.
18303@mail.vsfs.cz
8.
Basic elements of Culture
Language
Communi
-cation
Social
structure
CULTURE
Values &
Attitudes
Religion
9.
INTERNATIONAL BUSINESS [E_IB]
PhDr. Karel Eliáš, CSc.
18303@mail.vsfs.cz
SOCIAL structure
= determines the roles of individuals within the society,
indiv.mobility within society, stratification of the society
 Individuals, Families, Groups
Social attitudes influence / Business:
 US descourage nepotism
 Arab countries: family ties crucial
Importance of INDIVIDUAL to the group:
 Europe culture promotes individualism (PAY = merit based)
 group focused societies = the IND role is to SERVE the group (PAY =
seniority-oriented, group success)
Social STRATIFICATION
Social MOBILITY
 ability of IND to MOVE within stratums of society
10.
INTERNATIONAL BUSINESS [E_IB]
PhDr. Karel Eliáš, CSc.
18303@mail.vsfs.cz
LANGUAGE
= identified > 3.000 languages worldwide

Business language
 Form of language
 Competitive weapon
 Translations
 Meaning YES / NO
11.
INTERNATIONAL BUSINESS [E_IB]
PhDr. Karel Eliáš, CSc.
18303@mail.vsfs.cz
COMMUNICATION
= VERBAL x NON-VERBAL
 Contact zone
 Gestures & their impact on business
 Role of silence
 Role of eyes
 Gift giving & hospitality
 Business practice
 Role of education in a society
12.
INTERNATIONAL BUSINESS [E_IB]
PhDr. Karel Eliáš, CSc.
18303@mail.vsfs.cz
RELIGION
 Christianity
European traditions
 Hinduismus
way of living (life style): castes (privileged groups of
society), common household of a few families,
worship (cult) of cow
 Islam
men preference in business
13.
INTERNATIONAL BUSINESS [E_IB]
PhDr. Karel Eliáš, CSc.
18303@mail.vsfs.cz
VALUES & ATTITUDES
MASCULINITY x FEMININITY (Hofstede’s 1 of 5 dimensions):
= is manner in which people are motivated to work toward different
kinds of goals
Masculinity
People tend to place a high premium on material
possessions, money & assertiveness
The cultures that are more masculine, such as Japan, value competitiveness,
assertiveness, ambition, and the accumulation of wealth.
Femininity
People place a higher value on social relationships,
quality of life and concern for others
On the other hand, feminine cultures, such as Sweden, place more emphasis on
relationships, compassion, and the general quality of life.
14.
INTERNATIONAL BUSINESS [E_IB]
PhDr. Karel Eliáš, CSc.
18303@mail.vsfs.cz
Other culture aspects
Time perception
• Timing accuracy
• Politeness
Contact zone
• cca 80 cm in
Europe
• cca 30 cm in e.g.
Arabic countries
Role of eyes
• Importance in
Europe X could be
perceived as a sign
of agression in other
parts of world (Asia,
Japan)
15.
INTERNATIONAL BUSINESS [E_IB]
PhDr. Karel Eliáš, CSc.
18303@mail.vsfs.cz
Characteristics of Culture [relevant to IB]
Culture = collection of values, beliefs, behaviors, customs and
attitudes that distinguish one society from another
 society culture determines how firms operates in the society
Culture reflects LEARNED behavior
• Transmission from one member of society to another
Elements of culture are INTERRELATED
• e.g.: hierarchical society => stress on loyalty & harmony => results
in life-time employment & minimal job switching (Japan)
Behavior is ADAPTIVE
• Because cultural is LEARNED behavior, it’s ADAPTIVE
• i.e. culture change in response to external forces that affects society
Culture is SHARED
• Defines the membership of the society
• i.e. who shares the culture ‘proves’ to be a member / who does not
=> outside of boundaries of society
INTERNATIONAL BUSINESS [E_IB]
PhDr. Karel Eliáš, CSc.
18303@mail.vsfs.cz
16.
Hofstede’s 5 dimensions of cult.differencies
SOCIAL orientation
• Person’s beliefs about the relative importance of the
individual & groups to which that person belongs
• INDIVIDUALISM x COLLECTIVISM
POWER orientation
• Power RESPECT x TOLERANCE
UNCERTAINTY orientation
• Uncertainty ACCEPTANCE x AVOIDANCE
GOAL orientation (Masculinity x Femininity)
• AGGRESSIVE x PASSIVE goal behavior
TIME orientation
• LONG-TERM x SHORT-TERM outlook
17.
INTERNATIONAL BUSINESS [E_IB]
PhDr. Karel Eliáš, CSc.
18303@mail.vsfs.cz
Hofstede’s 5 dimensions
SOCIAL ORIENTATION
= person’s beliefs about the relative importance of the
individual & groups to which that person belongs
INDIVIDUALISM
COLLECTIVISM
• Cultural belief that the person
comes first
• Key values: high degree of
self-respect & independence
• Belief that group comes first
• Typically: well-defined social
networks, extended
families, tribes, co-workers
18.
INTERNATIONAL BUSINESS [E_IB]
PhDr. Karel Eliáš, CSc.
18303@mail.vsfs.cz
Hofstede’s 5 dimensions
POWER ORIENTATION
= refers to beliefs that people in a culture hold about
the appropriateness of power and authority dif. in
hierarchies
RESPECT
TOLERANCE
• People tend to accept the
power & authority of
superiors
• People at all levels in firm
accept decisions of superiors
• People are more willing to
question / refuse a decision
or mandate from sb at a
higher position
19.
INTERNATIONAL BUSINESS [E_IB]
PhDr. Karel Eliáš, CSc.
18303@mail.vsfs.cz
Hofstede’s 5 dimensions
UNCERTAINTY ORIENTATION
= is the feeling people have regarding uncertain an
ambiguous situations
ACCEPTANCE
AVOIDANCE
• Stimulated by change and
thrive on new opportunities
• Ambiguity is seen as a context
one can grow, develop, carve
out new opp.
• Positive response to change
• People dislike ambiguity and will
avid it whenever possible
• Amb. & change seen as
undesirable
• Preference of routine, structured
& consistent ways of doing
20.
INTERNATIONAL BUSINESS [E_IB]
PhDr. Karel Eliáš, CSc.
18303@mail.vsfs.cz
Hofstede’s 5 dimensions
GOAL ORIENTATION / Masculine x Feminine
= is manner in which people are motivated to work
toward different kinds of goals
AGGRESSIVE g.behavior
(Masculinity)
PASSIVE g. behavior
(Femininity)
• People tend to place a high
premium on material
possessions, money &
assertiveness
• People place a higher value on
social relationships, quality of life
and concern for others
21.
INTERNATIONAL BUSINESS [E_IB]
PhDr. Karel Eliáš, CSc.
18303@mail.vsfs.cz
Hofstede’s 5 dimensions
TIME ORIENTATION
= is extent to which members of a culture adopt a longterm vs. short-term outlook on work, life etc.
LONG-term
outlook
SHORT-term
outlook
• Value: dedication,
hard work, and thrift
• Value: traditions,
social obligations
22.
INTERNATIONAL BUSINESS [E_IB]
PhDr. Karel Eliáš, CSc.
18303@mail.vsfs.cz
Basic elements of Culture
Language
Communi
-cation
Social
structure
CULTURE
Values &
Attitudes
Religion
23.
INTERNATIONAL BUSINESS [E_IB]
PhDr. Karel Eliáš, CSc.
18303@mail.vsfs.cz
KEY terms
- Culture and its impact on International Business
- Characteristics of culture
- Five dimensions of culture differences
-
Social orientation (individualism x collectivism)
Power orientation
Uncertainty orientation
Goal orientation (masculine x feminine)
Time orientation
- Social stratification
- Communication: verbal x non-verbal
- Other culture aspects [time perception, contact zone,
role of eyes, gift-giving, hospitality]
24.
INTERNATIONAL BUSINESS [E_IB]
PhDr. Karel Eliáš, CSc.
18303@mail.vsfs.cz
Thank you for your attention
25.
INTERNATIONAL BUSINESS [E_IB]
PhDr. Karel Eliáš, CSc.
18303@mail.vsfs.cz