Cross Cultural Management
Overview CCM exam literature
Lecture 1 - Chapter 1: Nederveen Pieterse, 2009
Lecture 2 – cultural competencies - Chapter 1
- Articles for first paper
Lecture 3 - Chapter 2: cultural environments
Lecture 4 – critical reflection Hofstede - Chapter 2: cultural environments
& GLOBE - Article: Fang, 2003
- Article: McSweeney, 2002
Lecture 5 – organizational environment - Chapter 3: organizational environments
- Article: McGuire & Dow, 2009
- Article: Michailova, 2002
Lecture 6 - Chapter 3: organizational environments
- Case study 1: Holden, 2001
- Case study 2: Christopherson, 2007
- Case study 3: Boele et al., 2001
Lecture 7 – communication - Chapter 5: cross cultural communication
- Article: Feely & Harzing, 2003
Lecture 8 – guest lecture & global - Chapter 9: Global teams
teams - Article: Ford et al., 2017
Lecture 9 – work & motivation - Chapter 4: managerial environments
- Chapter 10: global assignments
Lecture 10 – global negotiation - Chapter 5: cross-cultural communication
- Chapter 8: global partnerships
- Chapter 10: global assignments
- Article: Chen & Easterby-Smith, 2008
Lecture 11 – leadership, ethics and - Chapter 6: global leadership
bribery - Chapter 7: managerial ethics and social
responsibility
- Article: Leung et al., 2015
,Lecture 1
What comes first? Culture or Economy? Which influences the other?
Culture comes in → people settle down
- Cultural variables are responsible for economic development
- Economic development is responsible for developing national cultural values
The Dutch golden age
→ Max Weber → The protestant Ethic and the Spirit of Capitalism
- Argues that Puritan ethics and ideas influenced the development of capitalism. The
spirit of capitalism does not refer to the spirit in the metaphysical sense but rather a
set of values, the spirit of hard work and progress
Max Weber
- Roman Catholic Church assured salvation to individuals who accepted the church’s
sacraments and submitted to the clerical authority.
→ The reformation had effectively removed such assurances. From a psychological
viewpoint, the average person had difficulty adjusting to this new worldview, and only
the most devout believers or “religious geniuses” within Protestantism → Martin Luther,
were able to make this adjustment according to Weber
- Weber argued that protestants began to look for other “signs” that they were saved
- The spirit of capitalism: the idea that working for the purpose of profit is a moral
good itself
- Self-confidence took the place of priestly assurance of God’s grace
- Worldly success became one measure of that self-confidence, but applied to any
occupation or trade
Weber’s thesis
- Weber claims that a strong work ethic is a main determinant of economic growth in
North-West Europe and North America, relating it to a mindset that could be
historically replaced to a specific religious ethics (Van Hoorn & Maseland)
- Other reasons for economic prosperity in Europe is the colonial trade with eastern
countries and the slave trade form Africa to North America
Economy and culture interrelated: study Weber → Protestant ethic and capitalism;
Hofstede’s fifth dimension; Inglehart’s WVS: World Values Study
◼ Fifth dimension of Hofstede: Culture leads to economy (confusion dynamism)
Protestantism Capitalism
Culture Economy
Long-term orientation New industrialized countries (NICs) in Asia
in 1980-1990s
The more uncertainty avoidance, the more people tend to buy from their home countries
If you hate another country → not buying products from that country
, ◼ Inglehart’s social value studies
Industrial revolution From traditional to rational
values
Economic → Culture
From modern to post-modern
Culture and economy
- Friedman: summed up the importance of this topic
“To reduce a country’s economic performance to culture alone is ridiculous, but to
analyze a country’s economic performance without reference to culture is equally
ridiculous, although that is what many economists and political scientists want to do”
- Overall our estimation results reveal that masculinity and power distance are
statistically insignificant predictors of growth, while individualism and uncertainty
avoidance are significant
Three paradigms on the degree of culture transformation
1) Cultures are similar and stay dissimilar (Clash of civilizations, the remaking of world
order, 1966) → Divergence
→ Future wars would be fought not between countries but between cultures, and
that Islamic extremism would become the biggest threat to world peace
2) Convergence of culture as a result of consumerism (McDonalization)
3) Hybridization: mixing of cultures → Dutch drinking cappuccino since 1990ies
→ however: that is what are actually being are cultural languages rather than
grammars
- The folkloric, superficial elements of culture → foods, costumes, fashions,
consumptions, habits, arts and crafts, entertainments, healing methods that travel
while deeper attitudes and values, the way elements hang together, the structural
ensemble of culture, remain contextually bound
What is globalization?
◼ Economic view: an international economic integration that can be pursued through
policies of ‘openness’, the liberalization of trade, investment and finance, leading to
an ‘open economy’
→ The main point of discussion → to what extent this economic integration
stimulates economic growth and can lead to poverty reduction in developing
countries (large steam of migration worldwide to western countries)
- People are afraid of globalization
- International economic integration is the most important part
◼ Multidimensional view: according to Maittelman (1966), the manifestations of
globalization include:
- The spatial reorganization of production
- The interpenetration of industries across borders
- The spread of financial markets (consumer goods, migrants working outside country)
, - The diffusion of identical consumer goods to distant countries
- Massive transfers of population within the south as well from the south and the east
to the west
- Resultant conflicts between immigrant and established communities in formerly tight
knit neighborhoods and an emerging worldwide preference for democracy
Drivers of globalization
- Global brands: Nike, Starbucks etc.
- Access to the internet
- Emerging markets, like Indian and china
- Shared R&D → research and development
- Interdependence of financial markets (think about the role of anti-globalists)
- Increasing role of governments → putting barriers
Drive for ‘efficiency and ‘economies’ of scale
→ in (Asian) shopping malls (what is impact on brands on social behavior)
Globalization asks for multicultural competencies
Book: The global village (McLuhan) the world is becoming smaller due to…
Book: Steers et a. (2016): the world is becoming faster…
- Costs (tele)communication down
- Costs of transportation coming down
- As a result: build global workflow platforms
- However: what are the problems with regard to communication across geographical
distance? → lot of miscommunication
Important role for cultural intelligence and for constructive intercultural contact (CIC)
→ Cultural intelligence increased innovation and enhances innovative work behavior
For whom does globalization benefit?
Who are the losers of globalization?
Which two groups in society are anti-globalists (or anti-EU)
What is the role/demand of the anti-globalists?
The Nike case:
Nike was accused of exportation and discrimination/racism for poor working conditions
→ Nike created several new departments in response to the criticism
→ 2000: Nike organized under the Corporate Responsibility and Compliance Department
Globalization has brought us into the global village (McLuhan, 1962); the global landscape
changed:
- Towards continuous change
- Towards increased interconnectedness
- Towards multiculturalism
- Toward (too) many people in the global village
- Towards fundamental problems that call for an integrated approach and support
from every country/citizen
- Large steam of migrants
Overview CCM exam literature
Lecture 1 - Chapter 1: Nederveen Pieterse, 2009
Lecture 2 – cultural competencies - Chapter 1
- Articles for first paper
Lecture 3 - Chapter 2: cultural environments
Lecture 4 – critical reflection Hofstede - Chapter 2: cultural environments
& GLOBE - Article: Fang, 2003
- Article: McSweeney, 2002
Lecture 5 – organizational environment - Chapter 3: organizational environments
- Article: McGuire & Dow, 2009
- Article: Michailova, 2002
Lecture 6 - Chapter 3: organizational environments
- Case study 1: Holden, 2001
- Case study 2: Christopherson, 2007
- Case study 3: Boele et al., 2001
Lecture 7 – communication - Chapter 5: cross cultural communication
- Article: Feely & Harzing, 2003
Lecture 8 – guest lecture & global - Chapter 9: Global teams
teams - Article: Ford et al., 2017
Lecture 9 – work & motivation - Chapter 4: managerial environments
- Chapter 10: global assignments
Lecture 10 – global negotiation - Chapter 5: cross-cultural communication
- Chapter 8: global partnerships
- Chapter 10: global assignments
- Article: Chen & Easterby-Smith, 2008
Lecture 11 – leadership, ethics and - Chapter 6: global leadership
bribery - Chapter 7: managerial ethics and social
responsibility
- Article: Leung et al., 2015
,Lecture 1
What comes first? Culture or Economy? Which influences the other?
Culture comes in → people settle down
- Cultural variables are responsible for economic development
- Economic development is responsible for developing national cultural values
The Dutch golden age
→ Max Weber → The protestant Ethic and the Spirit of Capitalism
- Argues that Puritan ethics and ideas influenced the development of capitalism. The
spirit of capitalism does not refer to the spirit in the metaphysical sense but rather a
set of values, the spirit of hard work and progress
Max Weber
- Roman Catholic Church assured salvation to individuals who accepted the church’s
sacraments and submitted to the clerical authority.
→ The reformation had effectively removed such assurances. From a psychological
viewpoint, the average person had difficulty adjusting to this new worldview, and only
the most devout believers or “religious geniuses” within Protestantism → Martin Luther,
were able to make this adjustment according to Weber
- Weber argued that protestants began to look for other “signs” that they were saved
- The spirit of capitalism: the idea that working for the purpose of profit is a moral
good itself
- Self-confidence took the place of priestly assurance of God’s grace
- Worldly success became one measure of that self-confidence, but applied to any
occupation or trade
Weber’s thesis
- Weber claims that a strong work ethic is a main determinant of economic growth in
North-West Europe and North America, relating it to a mindset that could be
historically replaced to a specific religious ethics (Van Hoorn & Maseland)
- Other reasons for economic prosperity in Europe is the colonial trade with eastern
countries and the slave trade form Africa to North America
Economy and culture interrelated: study Weber → Protestant ethic and capitalism;
Hofstede’s fifth dimension; Inglehart’s WVS: World Values Study
◼ Fifth dimension of Hofstede: Culture leads to economy (confusion dynamism)
Protestantism Capitalism
Culture Economy
Long-term orientation New industrialized countries (NICs) in Asia
in 1980-1990s
The more uncertainty avoidance, the more people tend to buy from their home countries
If you hate another country → not buying products from that country
, ◼ Inglehart’s social value studies
Industrial revolution From traditional to rational
values
Economic → Culture
From modern to post-modern
Culture and economy
- Friedman: summed up the importance of this topic
“To reduce a country’s economic performance to culture alone is ridiculous, but to
analyze a country’s economic performance without reference to culture is equally
ridiculous, although that is what many economists and political scientists want to do”
- Overall our estimation results reveal that masculinity and power distance are
statistically insignificant predictors of growth, while individualism and uncertainty
avoidance are significant
Three paradigms on the degree of culture transformation
1) Cultures are similar and stay dissimilar (Clash of civilizations, the remaking of world
order, 1966) → Divergence
→ Future wars would be fought not between countries but between cultures, and
that Islamic extremism would become the biggest threat to world peace
2) Convergence of culture as a result of consumerism (McDonalization)
3) Hybridization: mixing of cultures → Dutch drinking cappuccino since 1990ies
→ however: that is what are actually being are cultural languages rather than
grammars
- The folkloric, superficial elements of culture → foods, costumes, fashions,
consumptions, habits, arts and crafts, entertainments, healing methods that travel
while deeper attitudes and values, the way elements hang together, the structural
ensemble of culture, remain contextually bound
What is globalization?
◼ Economic view: an international economic integration that can be pursued through
policies of ‘openness’, the liberalization of trade, investment and finance, leading to
an ‘open economy’
→ The main point of discussion → to what extent this economic integration
stimulates economic growth and can lead to poverty reduction in developing
countries (large steam of migration worldwide to western countries)
- People are afraid of globalization
- International economic integration is the most important part
◼ Multidimensional view: according to Maittelman (1966), the manifestations of
globalization include:
- The spatial reorganization of production
- The interpenetration of industries across borders
- The spread of financial markets (consumer goods, migrants working outside country)
, - The diffusion of identical consumer goods to distant countries
- Massive transfers of population within the south as well from the south and the east
to the west
- Resultant conflicts between immigrant and established communities in formerly tight
knit neighborhoods and an emerging worldwide preference for democracy
Drivers of globalization
- Global brands: Nike, Starbucks etc.
- Access to the internet
- Emerging markets, like Indian and china
- Shared R&D → research and development
- Interdependence of financial markets (think about the role of anti-globalists)
- Increasing role of governments → putting barriers
Drive for ‘efficiency and ‘economies’ of scale
→ in (Asian) shopping malls (what is impact on brands on social behavior)
Globalization asks for multicultural competencies
Book: The global village (McLuhan) the world is becoming smaller due to…
Book: Steers et a. (2016): the world is becoming faster…
- Costs (tele)communication down
- Costs of transportation coming down
- As a result: build global workflow platforms
- However: what are the problems with regard to communication across geographical
distance? → lot of miscommunication
Important role for cultural intelligence and for constructive intercultural contact (CIC)
→ Cultural intelligence increased innovation and enhances innovative work behavior
For whom does globalization benefit?
Who are the losers of globalization?
Which two groups in society are anti-globalists (or anti-EU)
What is the role/demand of the anti-globalists?
The Nike case:
Nike was accused of exportation and discrimination/racism for poor working conditions
→ Nike created several new departments in response to the criticism
→ 2000: Nike organized under the Corporate Responsibility and Compliance Department
Globalization has brought us into the global village (McLuhan, 1962); the global landscape
changed:
- Towards continuous change
- Towards increased interconnectedness
- Towards multiculturalism
- Toward (too) many people in the global village
- Towards fundamental problems that call for an integrated approach and support
from every country/citizen
- Large steam of migrants
