Comparative & Cross-Cultural Management 2: Culture

Individuals or groups who have an interest in a company's activities and performance.

Key stakeholders are essential for a company's survival, their withdrawal of support could lead to collapse.

Formal rules and regulations that govern business activities, such as labor laws, product standards, and taxation.

Informal norms, beliefs, values, and expectations that shape business practices within a society.

Social structures that ensure stability and resilience within a society, including formal and informal rules and norms.

Societal standards, shared values, and beliefs that influence behavior. They evolve gradually through repeated interactions within a group.

Formal rules, laws, and contracts that regulate behavior. These elements are enforced through sanctions and legal consequences.

Multinational enterprises (MNEs) operate across different countries, interacting with varying cultural norms and regulations.

MNEs face the challenge of balancing stakeholder needs in different countries, where regulations and cultural expectations may clash.

A concept proposing that successful business strategies must adapt to local cultural norms and regulations, rather than applying a uniform approach across all markets.

The degree to which people without power accept that power is unequally distributed.

The tendency of people to belong to groups that look after their members vs. the tendency of people to prioritize themselves and their immediate family.

The degree to which people feel threatened by unclear or ambiguous situations.

The extent to which dominant values emphasize success, achievement, and material possessions (masculinity) vs. caring for others, quality of life, and relationships (femininity).

A framework developed by Geert Hofstede to understand cultural differences across nations, based on five dimensions: power distance, individualism vs. collectivism, uncertainty avoidance, masculinity vs. femininity, and long-term orientation vs. short-term orientation.

The shared beliefs, values, behaviors, and customs of a group of people.

A perspective that focuses on understanding cultures from within, emphasizing their unique characteristics. It provides rich descriptions of specific cultural practices and meanings.

A perspective that focuses on identifying patterns and similarities across cultures to make comparisons. It uses large samples and standardized research methods.

The idea that a relationship established at one level of analysis (e.g., country-level data) cannot be automatically applied to individuals within that group.

A way of understanding cultural differences based on observable elements like language, religion, customs, and material culture.

A type of research error that occurs when drawing conclusions about a whole group based on individual-level data.

The tendency to focus on Western Europe in research, potentially ignoring cultural variations across other regions.

The variation in environmental consciousness between genders. For example, women may tend to be more environmentally conscious than men.

The idea that groups of similar companies or organizations in a specific geographic area can benefit from mutual collaboration and knowledge sharing, leading to greater economic success.

Cultural dimensions, like individualism vs. collectivism, power distance, or uncertainty avoidance, that can influence business practices, negotiations, and leadership styles in different countries.

The concept that a nation's economic success can be driven by factors like local resources, skilled workforce, strong demand for its products, and supportive industries.

The idea that a nation's economic success is influenced by its cultural values, beliefs, and institutions. These factors shape the way people approach work, entrepreneurship, and economic development.

The process of focusing government policies to establish a favorable environment for business competition, stability, and the formation of clusters. This includes promoting innovation, technology, and entrepreneurship.

The theory argues that cultures that prioritize productivity, private property, and unlimited wealth potential tend to be economically successful. However, it ignores the possibility of diverse successful models.

The phenomenon where past decisions and events influence current and future choices, creating a path-dependent development trajectory. This can limit options and make change difficult.

The idea that culture and institutions are intertwined, reinforcing each other over time. They shape business practices and economic development through ongoing interactions.