University
of Washington
Geography
349, Geography of International Business
Professor
Harrington
Cultural Environments of International Business
It's very difficult
to teach cultural issues relevant to international business: teaching
actual attributes is tedious, lends itself to stereotyping, and
can rapidly become outdated. Daniels and Radebaugh's Chapter 2 outlines
a variety of frameworks through which we can discuss and compare
cultural attributes as they relate to international marketing and management.
Contents:
HOW TO STUDY CULTURAL DIFFERENCES?
One can focus on intensive study of a given culture, compare a given
culture to another, or attempt to generalize differences across a large
number of cultures. Geert Hofstede (Cultures and Organizations,
1991) and Vern Terpstra and Kenneth David (The Cultural Environment
of International Business, third ed., 1991) have researched specific
behavioral attitudes and conduct in a wide variety of countries, and have
developed groupings of countries and attributes.
DIMENSIONS OF CULTURAL DIFFERENTIATION
Recognize that behavioral attributes vary across and within cultures,
by
-
culture
-
nation
-
sub-national region
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social group
-
individual
The determinants of roles and status, within the household (who
makes purchasing decisions?) and within the firm, vary by culture:
-
competence
-
gender
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age
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family
Language
-
note the danger in attempting literal translation without recognizing idioms
-
note the dialect differences within a language
Silent languages of colors, gestures, timing, status
HOW TO USE RECOGNITIONS OF
DIFFERENCE?
Marketing uses: recognizing behavioral and cultural attributes
helps develop all aspects of the marketing plan -- which is, after all,
the interaction of production and consumers
-
selection of mode of selling (direct versus indirect)
-
nature of interaction during direct selling
-
nature of indirect or advertising themes
Managerial uses: recognizing behavioral and cultural attributes
helps establish relationships between and within levels of organizational
hierarchies
-
setting expectations
-
providing motivation
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providing feedback
CORPORATE RESPONSES
Determine the degree of specialized cultural awareness that is required
-
greater with a larger number of activities in the foreign culture
-
greater with more direct forms of international business (direct exporting,
short distribution channels, FDI)
-
greater in cultures that are more different from the domestic culture
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greater in "high-context" business cultures (peripheral, social, and informal
information and cues are important for transacting business)
Marketing in multiple cultures
-
spend time in the local context before trying to do business
-
hire local consultants
-
engage focus groups
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recognize differences in formats (e.g., distribution), but not overall
purpose (overall corporate profitability)
Management in multiple cultures
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international rotations of managers
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cultural-awareness training
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sustaining morale by even-handed treatment and promotion
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setting core corporate values
copyright James W. Harrington, Jr.
revised 3 May 2000