A very important key to being successful when doing business in a foreign country is to

learn and understand the culture and customs of the population. No matter how big or small,
private or public the way in which the company communicates with the locals can either help or
hurt the bottom line. Israel, in our case is an emerging market with values and customs pretty
similar to those in many countries in Europe and in America.
To start, when looking at Israel with Hofstedes dimensions of culture we can begin to
see how the culture in Israel affects all aspects of business. Power distance, which measures how
a society deals with the fact that people are unequal in physical and intellectual abilities, in Israel
is very low with a score of 13. In a country with a low power distance there is a small gap
between managers and the workers below them as they are easily accessible and prefer to work
together. The managers and upper management also tend to support independent thought and
expect their workers to be challenged. Israel, with their low power distance score, has a very
structured and planned work system that focuses on time management and efficiency. Theyre
work force as equal in many areas including jobs being held by both men and women.
Israel holds the second lowest power distance of any country with Austria having the
lowest at 11. Comparing Israel to Asian cultures, where power distance scores are much higher,
workers are much more likely to have problems with upper management since inequality is much
more acceptable, unlike Israel. Many European countries such as Germany, France and Spain
where there is a higher power distance score there is a more centralized decision making process
and more respect for authority unlike Israel where individualism and collective decision is key.
In comparison, Israel is a country that values equality in a company over hierarchy that is
predominant in the United States.

Israel, when looking at Individualism on Hofstedes scale, scores a 54, which is towards
the middle of the scale. Individualism in Hofstedes scale, which is defined as a preference for a
loosely-knit social framework in which individuals are expected to take care of themselves and
their immediate families, conflicts against Collectivism, which represents a preference for a
tightly-knit framework in society in which individuals can expect their relatives or members of a
particular in-group to look after them in exchange for unquestioning loyalty. Israel with its score
of 54 blends both aspects of Individualism and Collectivism, which can be seen in its culture.
There is a focus on smaller families and strong relationship focus on parents and their children
instead of aunts and uncles. The United States, on the other hand, are more independent an are
more likely to branch out from their families.
Continuing Hofstedes culture analysis, Israel scores a 81 on the Uncertainty Avoidance
Index, the extent to which different cultures socialize their members into accepting ambiguous
situations and tolerating ambiguity. Israel with its high score shows that it has more business
structure and more expertise in their business models. They also tend to stick to a more tried and
true form of thinking and are less likely to take risks in the unknown. Some other characteristics
in Israel of their high score are that they tend to be more passionate and lively as they have an
inner urge to keep working. The rules and structure of the Israeli government helps channel all
those urges into useful material things.

Many European countries and the USA, in contrast score lower then Israel because they
tend to have fewer rules and structure making it easier for many entrepreneurs to make entry into
the business world. This entrepreneurial attitude is seen as a positive in countries with low UAI
since they tend to see risk taking as a norm. As a byproduct of lows laws and regulations,

innovations is higher than in countries with a high UAI but in some cases there are no rules to
help maintain those innovations in the long run.

Lastly in Masculinity vs. Femininity, which measures the relationship between gender
and work roles, Israel scores a 47, which is neither masculine nor feminine. Israel, which is an
emerging market in technology and finance, has equality in both the women and men in the work
force. However Israel does show some characteristics of both masculinity and femininity.
Managers, as shown in Israels uncertainty avoidance index, are expected to be assertive and
show a firm grasp of what they are doing in order to maintain the business structure. Also,
Israelis population likes to show off their status in the form of cars and technical devices.

In contrast many European countries have a lower Masculinity rating and are seen more
feminine as they value personal time more over work. Other characteristics, which Israel also
shows, are tendencies to ask personal questions that are considered the norm and small talk at
formal functions will focus on an individuals and not just business. On the other side of the
scale with countries like Japan and Italy scoring high on the scale, lifes priorities are focused on
wealth and expansion. Women and men also tend to have very different roles in society, which is
unlike Israel and its citizens.

Although Israel had some very similar characteristics to the United States, there are many
clear-cut differences in their cultures. The culture here in the United States is more profit driven
where as the culture in Israel is more lax and more flexible which is best described by Kobi
Rasner, in his book Understanding The Israeli American Cultural Gap, in which talks about how
there is no word for deadline in Hebrew. Other differences include the suspicion Israeli based
companies have when beginning projects which is different to the one hundred percent trust

shown by American based company. The underlying factor in all these differences boils down to
emotions as perfectly summed by Kobi when he states Israelis are not always respectful of
American valuation metrics, and try to fashion their valuation on other metrics including one not
present in the USAemotions. As a result, the opening bidding gap theyre accustomed to tends
to turn off and even offend the American seller and reduce his interest to zero.(Glasser)

There are many other local business culture practices that must be taken in account when
business is being conducted in Israel. As mentioned before, individualism is huge in Israel and
its people prefer one to be themselves instead of pretending to be someone theyre not in order
to get clients or make a profit. Time is also of utmost importance, and since most Israelis come
from a background of war and other traumas, they try to get the most done today. Although
time is very important, lenience is given in terms of how late one can be to a meeting and the
norm is about 15 minutes. This gives extra proof to Israels more family oriented culture.
Also, when meeting clients for the first time, its custom to always offer a handshake and
to maintain eye contact throughout the conversation. Other body composure is crucial such as
sitting forward with legs apart. Israelis, also, do not like to waste time and are always ready for
actions and expect the same in return. Along with body language, verbals are very important in
establishing and maintaining a strong bond with potential partners and clients. Israelis are very
vocal people and in many situations are bound to raise their voices to express their passion and
emotion, which shouldnt be seen as hostility. Curiosity is another trait shared among Israelis and
they may ask intimate questions about marriage or salary and should be responded in a polite and
kind manner.

Bibliography

"Tips for Doing Business in Israel." State of Israel. Tamas.gov, n.d. Web. 23 Nov. 2014.

"What about Israel." The Hosfstede Center, n.d. Web. 22 Nov. 2014.

"Israel's High Power/Low Power & High/Low Uncertainity Avoidance." Jarretttole. N.p., 9 Oct.
2012. Web. 24 Nov. 2014.

Glasser, Tom. "Overcoming the Israel-America Business Cultural Gap." The Blogs
The Times of Israel Overcoming the IsraelAmerica Business Cultural Gap
Comments. N.p., 2 Oct. 2014. Web. 24 Nov. 2014.