Professional Documents
Culture Documents
Cross Cultural Management: Global Strategic Management: Philippe Lasserre
Cross Cultural Management: Global Strategic Management: Philippe Lasserre
Cross Cultural
Management
Values - Beliefs
Preferences
Explicit, Declared,
Example: « Time is Money »,
« Authority has to prevail »
Basic Assumptions
Meaning
Invisible, Unconscious, Taken for Granted
Example: « Time is limited», « All men are equal »
André Laurent
HOFSTEDE’s STUDY:
Four Dimensions: POWER DISTANCE / INDIVIDUALISM
UNCERTAINTY AVOIDANCE / MASCULINITY-FEMINITY
TROMPENAARS’ STUDIES:
Value Orientation
100
Malaysia
60 Taiwan Spain
Japan
Asian/Latin American Italy
Hierarchical/Collectivists
Canada USA
40 UK Australia
Germany
Sweden
20 Denmark
Anglo-Saxon/Scandinavian
Eqalitarian/Individualists
0
0 20 40 60 80 100
INDIVIDUALISM
Source:Hofstede, 1980
100
90 78
77
80 73
66
70
53
60 46
44
50 38
40 27
30 23
18
20 10 17
10
0
S NL USA DK UK CH B D F I INDO SPAIN JAPAN
André Laurent/INSEAD
50
40
Percent agree
30
20
10
P
S
D
ZA
B
A
S
DK
D
CH
B
BR
E
I
NL
F
JA
U
N
US
G
A
C
60
PERCENT AGREE
50
40
30
20
10
0
y
m
n
H
SA
ly
e
L
an
e
c
N
iu
Ita
ed
an
U
g
el
Sw
Fr
er
B
G
1977-1979 1991-2000
"DOING" "BEING"
X X
USA ITALY
USA 17
26
SWEDEN 30
31
UK 34
34
ITALY 42
43
JAPAN 50
70
83
INDONESIA
0 20 40 60 80 100
André Laurent/INSEAD
SWEDEN 26
32
UK 35
36
FRANCE 43
44
GERMANY 45
51
ITALY 56
59
SPAIN 74
0 20 40 60 80
André Laurent/INSEAD
AUTHORITY Constitution The Law The State The State The State
The ground The Law Decentralisation The Law The The The Families
rules for Decentarilsation Centralisation Corporations Corporations Centralisation
Vertical order. Decentralisation Centralisation
Origin of
power
IDENTITY
The ground Individual rights Social Welfare Social National Nationalism Clans
rules for Contracts Welfare belonging Cultural Ethnic
Horizontal Heterogeneity Homogeneity Cultural Cultural Identity Identity binding
order. (micro cultures) Identity Homogeneity Homogeneity
(What makes Heterogeneity
society stick) (micro
cultures)
CAPITAL
How Financial Financial Banks State and Banks State Family
Capital is markets Medium gearing market High Gearing High Gearing High Gearing
found and Low gearing Medium
channelled gearing
Sources: Redding, Whitley, Albert, Berger and Dore,
Global Strategic Management : Philippe Lasserre Hampden-Turner, Trompenaars.
Business Systems
Anglo- German French Japanese Korean Overseas
American Nordic & Latin Chines
HUMAN
CAPITAL Academic Academic and Academic Elitist Academic plus Academic Elitist Academic on
How human Performance Apprenticeship on the job the job.
skills are Led led
developed
SOCIAL
CAPITAL High trust High Trust Low trust High Trust High Trust High trust
How trust is Contracts. Contracts negotiation within groups within groups. within Family.
created Legal Low outside Low outside
Institutions
OWNERSHIP
Who own Shareholders Banks, State, Banks, Cross- Business Family Groups
enterprises Employees, Shareholders Shareholding groups, Cross-
Shareholders shareholding
NETWORKING
How economic Contracts Contracts.. Elitist Elitist Personal Personal
agents relate to Some Elitist Relationships. Relationships Relationships. Relationships
each other. (The relationships State State
rules of business Interventionism Intervention
transactions)
MANAGING
How employees System led Hierarchical Hierarchical Corporate Hirarchical Hierarchical
are induced to Motivation Technical bureaucracy. identity. Corporate Family Loyalty
cooperation in Perforamnce Competence Negotiation Corporate Loyalty
the firm measures Loyalty
MONO-CULTURAL TEAMS
DISASTER SYNERGY
LOW HIGH
PERFORMANCE
MULTICULTURAL TEAMS
• Assumption of similarity/homogeneity.
André Laurent/INSEAD
André Laurent/INSEAD
• Western individualism.
• Fear of stereotyping
André Laurent/INSEAD
André Laurent/INSEAD
RELATIONS
Engaging Importance given to Most Asian countries privilege the
establishing personal personalisation of contacts before
relationships in business engaging in business transactions
transactions
Contracting Importance given to Legal contracting is the norm in the
overall agreements on USA while broad agreements are
principles versus details considered satisfactory in Japan
COMPETING
Advantages Product’s technology In China, connexions (Guanxi) are
versus Connexions as a still a very important factor of
source of competitive competitive advantage
advantage
Supplying Preferences given to In Asia the notion of “extended
friends and families in families” implies that preferential
supplies contracts treatment be given to families and
friends for supplies contracts.