Long- versus Short-Term Orientation in 10 minutes

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Long- versus Short-Term Orientation in 10 minutes
Geert Hofstede
January 2015
Origin of the term “long- versus short-term orientation”
• Coined by Hofstede in 1991 for a fifth dimension of
differences between national societies
• Based on answers of student samples from 23 societies
around 1985 to the Chinese Value Survey (CVS), developed
by Michael H. Bond from suggestions by Chinese scholars
• Replicated and extended in 2010 by Michael Minkov based
on 1995-2004 World Values Survey (WVS) data from
representative samples of the population in 93 societies
Long/Short Term Orientation as a societal culture dimension
• Long-Term Orientation stands for the fostering in a society of
pragmatic virtues oriented to future rewards, in particular
perseverance, thrift, and adapting to changing circumstances
• Its opposite pole, Short-Term Orientation, stands for the
fostering in a society of virtues related to the past and the
present, such as national pride, respect for tradition,
preservation of face, and fulfilling social obligations
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Long-Term Oriented societies
• Good and evil are relative
• Which norms apply depends
on the situation
• The superior person adapts to
the circumstances
• We should be humble about
ourselves
• We want to learn from other
countries
• Traditions can be changed
• Opposing truths can be
integrated
• Common sense and choosing
the middle way
Short-Term Oriented societies
• Good and evil are absolute
• Fixed norms apply always,
whatever the circumstances
• The superior person is always
the same
• We seek positive information
about ourselves
• We are proud of our own
country
• Traditions are sacrosanct
• Truth A always excludes its
opposite B
• Religious and ideological
fundamentalisms
How are long- and short term orientation measured?
• There is no absolute standard for L/S orientation
• What we can measure is differences between societies
• The position of societies relative to each other is
expressed in a Long-Term Orientation Index score (LTO)
• LTO values have been plotted on a scale from 0 to 100;
scores close to 0 stand for a shorter, scores close to 100
for a longer term orientation
Some Long Term Orientation (LTO) scores, out of 93
High
88 Japan
87 China
83 Germany
81 Russia
67 Netherlands
63 France
61 Italy
53 Sweden
Low
51 Britain
51 India
38 Israel
26 U.S.A.
24 Mexico
21 Australia
13 Nigeria
07 Egypt
Some examples of what these LTO scores correlate with
Long Term Oriented societies
• Secondary school students
perform well at mathematics
• Secondary school students
underrate own math results
• Large savings quote, funds
available for investment
• Companies seek market share,
long-term profits
• Investors prefer family
business and real estate
• In poor countries, faster
economic growth
Short Term Oriented societies
• Secondary school students
perform poorly at mathematics
• Secondary school students
overrate own math results
• Small savings quote, little
money for investment
• Companies report quarterly
results, stress bottom line
• Investors prefer shares and
mutual funds
• In poor countries, slower
economic growth
Don’t the LTO scores change over time ?
• The scores reflect values transferred from parents to children;
these values were already found in 15-year olds; values acquired
in childhood rarely change in later life
• Research by Sjoerd Beugelsdijk comparing answers to the same
questions by two successive generations 30 years apart showed
no worldwide shift and no changes in the position of countries
• Global information systems do affect private habits and business
practices, but the way they do so varies between societies
according to pre-existing and stable societal values
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