Topic 3: Long - term/ Short – term orientation

I– How the research was conducted:

In China, there is a measure called Chinese Values Survey (CVS) developed by the
Chinese Culture Connection (1987), an international network of organizational
researchers headed by Michael H. Bond. Analysis of the CVS database produced four
dimensions, these are integration, Confucian work dynamism, human-heartedness, and
moral discipline, of which three, across twenty common countries, were each
significantly correlated with one of Geert’s IBM dimensions. The fourth CVS
dimension was not correlated with the fourth IBM dimension: uncertainty avoidance
had no equivalent with Confucian work dynamism in the CVS.
The fourth CVS dimension combined these values
1. Persistence (perseverance)
2. Thrift
3. Ordering relationships by status and observing this order
4. Having a sense of shame
5. Reciprocation of greetings, favors, and gifts
6. Respect for tradition
7. Protecting one’s “face”
8. Personal steadiness and stability
The fourth dimension of CVS is strongly related to current economic growth and
predicted future economic growth. Because this dimension is correlated with
economic growth, Geert sees it as a necessary addition to a global tool. As patience
and frugality reflect an orientation toward the future, while personal stability and
tradition can be seen as a static orientation toward the present and past, starting with
his 1991 book Geert labeled this fifth dimension long-term versus short-term
orientation
II- Long-term orientation vs Short-term orientation
1- Definition
- Long-term orientation: the fostering of virtues oriented toward future rewards
—in particular, perseverance and thrift.
- Short-term orientation: the fostering of virtues related to the past and present
—in particular, respect for tradition, preservation of “face,” and fulfilling social
obligations
2- Long-term Orientation Index Scores for 23 countries based on the CVS
 - The top positions: China and other East Asian countries.
- The middle range: Continental European countries
- The short-term side: Great Britain and its Anglo partners Australia, New
Zealand, the United States, and Canada
- The African countries Zimbabwe, Nigeria, Philippines and Pakistan scored
very short-term
III- Key differences between Short and Long-term Orientation Societies
1- Based on Chinese Value Survey
1.1- Family Life
 SHORT-TERM ORIENTATION LONG-TERM ORIENTATION
Marriage is a moral arrangement Marriage is a pragmatic arrangement.
Living with in-laws is a source of Living with in-laws is normal.
trouble.
higher actual divorce rates low actual divorce rates
Young women associate affection with a Young women associate affection with a
boyfriend. husband.
Humility is for women only (seen as Humility is for both men and women.
feminine)
Old age is an unhappy period, but it Old age is a happy period, and it starts
starts late early.
Preschool children can be cared for by Mothers should have time for their
others. preschool children.
Children get gifts for fun and love Children get gifts for education and
development.

1.2– Business

SHORT-TERM ORIENTATION LONG-TERM ORIENTATION

Main work values include freedom,
rights, achievement, and thinking for one honesty, openness to new ideas,
self
Leisure time is important
People should be rewarded according to
their abilities
Stress is on short-term profits
Personal loyalties vary with business
needs.
Managers and employees are in different
camps
Main work values include learning,
accountability, self-discipline and self-
reliance.
Leisure time is not important
Wide social and economic differences
are undesirable
Stress is on future market position
Investment in lifelong personal
networks, guanxi
Owner-managers and workers share the
same aspirations

1.3- Ways of thinking

SHORT-TERM ORIENTATION
Concern with possessing the Truth
There are universal guidelines about
what is good and evil.
Dissatisfaction with one’s own
contributions to daily human relations
and to correcting injustice
Matter and spirit are separated.
If A is true, its opposite B must be false.
Priority is given to abstract rationality
There is a need for cognitive
consistency.
Analytical thinking
2- Based on World values survey (WVS)
SHORT–TERM ORIENTATION
Service to others is an important goal
Proud of my country
Tradition is important
Monumentalism
Family pride
Mothers positively influence daughters’
feelings about themselves and beauty.
Students attribute success and failure to
luck.
Weaker mathematics and science results
of fourteen-year-olds due to less effort
LONG-TERM ORIENTATION
Concern with respecting the demands of
Virtue.
What is good and evil depends on the
circumstances.
Satisfaction with one’s own
contributions to daily human relations
and to correcting injustice
Matter and spirit are integrated
If A is true, its opposite B can also be
true.
Priority is given to common sense.
Disagreement does not hurt.
Synthetic thinking
LONG-TERM ORIENTATION
Children should learn to save money and
things
Learn from other countries
Children should learn to persevere
Flexhumble
Family pragmatism
Daughters’ ideas of beauty are
independent of mothers’ ideas.
Students attribute success to effort and
failure to lack of it.
Better mathematics and science results of
fourteen-year-olds due to harder work
No special skills for mathematics
Talent for theoretical, abstract sciences
Slow or no economic growth of poor
countries
Small savings quote, little money for
investment
Investment in mutual funds
Appeal of fundamentalisms
Appeal of folk wisdom and witchcraft
In East Asia, better at mathematics
Talent for applied, concrete sciences
Fast economic growth of poor countries
Large savings quote, funds available for
investment
Investment in real estate
Appeal of pragmatism
Appeal of knowledge and education

IV- Long-and Short-Term Orientation, Family Relations, School Results and

Economic Growth

Long- and Short-term Orientation in The mother’s contribution to the

Family Relations daughter’s self-enhancement as part of
the short-term orientation of a culture.

Long-and short-term Orientation in High-LTO cultures that contributed to

School Results mathematical skills. Performance in
mathematics correlated significantly with
LTO( not science)

Long-and Short-term Orientation in LTO-WVS Versus GNI per Capita Ratio

Economic growth - For the poor countries, the
correlation is significantly
positive whereas for the wealthy
countries, it is significantly
negative.

V- Distinguish between a long-term oriented country and a short-term oriented

country

- LTO country:

· China (77):

o places a strong emphasis on long-term traditions and respect

for ancestors
 o Chinese give priority to common sense over rationality

o In Confucianism and the Guanxi philosophy emphasize

relationships. The Chinese believe that relationships are
essential for success in work, so they actively cultivate and
build as many relationships as possible, as they believe
these connections will aid them in the future

o Chinese viewed disagreement as less harmful to personal

relationships than injury or disappointment

o Chinese are quite persistent and engage in clear investment

and savings activities

o Chinese are adaptable, able to cope with circumstances,

and place importance on hierarchical relationships,
arranging them based on status.

- STO country:

· US (50):

o focused on immediate results, flexibility and adaptability in a fast-

paced environment

o People in the United States tend to focus on short-term

outcomes and individual values rather than long-term
goals and collective concerns

o Prefer clarity and simplicity over complex and uncertain

environments

o Prefer quick decisions and are willing to adapt if

necessary.

LTO country: China STO country: US

- Focus on long-term results
- Collectivism
- Prioritize education and career
- Consider friendship to entail
lifelong companionship, providing
support when needed
- Prioritize outcomes or goals
- Focus on immediate results
- Individualism
- Prioritize qualities and beliefs
- Consider acquaintances from various
aspect of life (bạn học, bạn làm việc,
bạn chơi…)
- Prioritize work efficiency and
overlook ceremonial rituals

VI- Conclusion
SHORT-TERM ORIENTATION LONG-TERM ORIENTATION

‐Focus on past and present ‐Believe in and focus on future

‐Personal steadiness and stability; ‐Flexible and adaptable to the

respect for tradition circumstances

‐Pay less attention to relationships; ‐Pay attention to relationships; order

reciprocating social obligations relationships by status; have a sense
of shame

‐Enjoy life ‐Saving

‐More emphasis on quick results ‐More emphasis on long-term results

‐Lower importance of perseverance, Perseverance, thrift, investment

thrift…

-There are universal guidelines about ‐What is good and evil depends upon
what is good and evil the circumstances