Critical Reflection

William KwokEnoch NgAinsley HartAxel Durand-SmetMahmoud Abu HannoudMartina Nikic

Divergent Cultures

1) Introduction to cross-cultural analysis2) Comparative analysis of assigned articles3) Contribution of other articles4) Hofstede’s Value Dimensions5) Importance of Hofstede’s model6) Improvements of Hofstede’s model7) Relation to Factbook – Banking Industry

Table of Contents

Introduction to cross-cultural analysis

• Also known as comparative analysis.• Crucial for identifying aspects of human culture.• Can aid in understanding of individual traits.• Statistical cross-cultural comparisons can be used to discovertraits shared between cultures.

Comparative analysis of assigned articles

1980

• Hofstede’s Value Dimensions

1988

• New value to Hofstede’s model (LTO)

1992

• Schwartz’ model

1993

• Trompenaars’ model

1999

• Improvement of Schwartz’ model

Contribution of other articles

• Importance of Hofstede’s theory and framework: Analysis of ethical policies in firms around the world

• Improvement of Schwartz’ methods: SVS PVQ

• Analysis within a culture: “Pancultural Analysis”• Location effect• Patterning effect

Contribution of other articles

Trompenaar Schwartz (PVQ)

Theories and Models

Hofstede’s Value Dimensions

Cultural Differences

Power Distance

Uncertainty Avoidance

Individualism and

CollectivismMasculinity/

Feminity

Long-Term Orientation (Added in

1988)

Hofstede’s Value Dimensions

Source: http://geert-hofstede.com/switzerland.html

Importance of Hofstede’s model

• Many other theoretical models have been the product of Hofstede’s model.

• Provided numerous statistical results about culture.• Influenced Trompenaars’ model i.e. closeness of

collectivism vs. individualism of Hofstede and communitarianism vs. individualism of Trompenaars.

Improvements of Hofstede’s model – Trompenaar (1993)

CultureInner v. Outer directed

Universalism v. Particularism

Individualism v. Communitarism

Specific v. Diffuse

Affective v. Neutral

Achievement v. Ascription

Sequential v. Synchronic time

Improvements of Hofstede’s model – Schwartz (1992)

CulturePolar dimension

1

Openness to change Conservation

Polar dimension 2

Self-enhancement Self-transcendance

Improvements of Hofstede’s model – Schwartz (1999)

Culture

Polar dimension 1

Conservatism Intellectual Autonomy

Affective Autonomy

Polar dimension 2

Hierarchy Egalitarianism

Polar dimension 3

Mastery Harmony

Relation to Factbook – Banking Industry

Switzerland• Relatively risk averse• Score of 58 on Hofstede’s

scale.• Lower power distance• Score of 31 on Hofstede’s

scale.

Poland• More risk averse • Score of 93 on Hofstede’s

scale.• Higher power distance• Score of 68 on Hofstede’s

scale.

What effect will these differing scores have on how the banking sector operates in the different countries?

References

• A quarter century of Culture’s Consequences: A review of empirical research incorporating Hofstede’s cultural values framework by Kirkman, Lowe and Gibson (2006)

• On the Empirical Identification of Dimensions for Cross-Cultural Comparisons by Leung and Bond (1989)

• Cultural Values and International Differences in Business Ethics by Scholtens and Dam (2007)

• A Theory of Cultural Values and Some Implications For Work by Schwartz (1999)

• Extending the Cross-Cultural Validity of the Theory of Basic Human Values with a Different Method of Measurement by Schwartz, Melech, Lehmann, Burgess, Harris and Owens (2001)

• National culture and the values of organizational employees: A dimensional analysis across 43 nations by Smith, Dugan and Trompenaars (1996)

THANK YOU