CCM summary
Culture and economy: cultural behaviour is responsible for economic development <>
economic development is responsible for development of cultural values and behaviour
Friedman: not only culture that influences economy, but you can’t analyse economy without
reference to culture.
Culture influences economy:
- Weber: explains Dutch Golden Age by current culture, namely Protestantism. They
were hard-working and frugal (Puritan Ethics > not spending much), and this strong
work ethic led to economic growth in Golden Age. Another reason for Dutch
economic prosperity is colonial trade with ‘new’ countries.
- Hofstede: six dimensions that can predict economic growth.
o Individualistic countries > high GDP per capita (Switzerland, New Zealand)
o Collectivistic countries > low GDP per capita (Colombia, Thailand)
o Long-term orientation > invest money for longer period, become
economically profitable for long time (Singapore, Japan, South-Korea)
o High uncertainty avoidance > preparing for future, saving money, home bias
o No relationship with economy: masculinity/femininity, low/high power
distance, indulgence vs. restraint
Economy influences culture:
- Inglehart: 3 economic periods that had an impact on values and culture back then
o Agricultural period: traditional values
o Industrial period: rational values
o Post-modern period: post-modern (non-rational) values
Characteristics of culture:
- Culture is shared by members of a group: preferences are commonly shared by a
group of people, they are neither universal nor entirely personal
- Culture is learned through membership: we acquire values, assumptions, and
behaviours by seeing how others behave (e.g. school, family)
- Culture influences attitudes and behaviours of members: culture tells us what
acceptable and unacceptable is, so it influences our believes and behaviour
o Sub-cultures exist: e.g. organisational culture, family culture, religious culture
Culture is complex and sensitive topic:
- Society keeps it correct through beliefs, norms, values, and practices
- Institutions reinforce these through laws, regulations, and policies
Etic perspective on culture:
Culture is tangible, measurable and comparable, stable, we do not influence is, it is outside
ourselves, how outsiders see it describes the culture, behaviourist psychology
Emic perspective on culture:
Culture is not tangible, it is created by us, we influence it if we take part, you can only
describe it from inside, culture changes all the time (dynamic), native’s point of view
,Globalization changes world of business
By rise of new countries, multiculturalism, and many different economic, political (wars),
social (migration), environmental (Covid-19), or technological (AI) forces. Economic get more
connected with each other due to globalization.
Steers et al.: ‘world is becoming faster’
Due to cheaper communication and transportation, however communication across
geographical distance does not get easier. Cultural intelligence and CIC have important role.
Economic view on globalization:
- Open economy stimulates globalization and economic integration
- Is the open economy good for everyone in the world? Does it reduce poverty in
developing countries?
- Winners and losers of globalisation: migrants are losers due to wars and competition
Multidimensional view on globalization: (what does it bring to us?)
- Production reorganization across the world
- Increasing preference for democracy
- Massive population transfers
- Diffusion of consumer goods to distant countries (e.g. luxury goods to India)
- Spread of financial markets
- Industries expanding across borders
What are drivers of globalization?
Large multinational brands, internet, shared research, drive for efficiency, interdependence
of financial markets, role of governments
McLuhan introduced ‘global village’
World is becoming one. Businesses are homogenized because of internet, connecting and
sharing information got easier. Now the global landscape has changed:
Continuous change, interconnectedness, multiculturalism, too many people in global village,
large streams of goods and people, fundamental problems.
We need universally trusted organizations to tackle global problems.
Ethnocentrism: when one’s group is at the centre of everything
- In-group/out-group situation: positive about insiders, very negative on outsiders
- Universal phenomenon: rooted in most group relations
- Ethnocentric consumers are home-bias: products from home country are better
Stereotyping: when person all members of a group get collective characteristics, as a result
of being part of that group (e.g. all blondes are dumb). It’s a generalization.
- Not always negative and inaccurate
- Cultural stereotyping: leads to negative imagery, hostile attitudes and ingroup-
outgroup distinction
Three views/paradigms on cultural transformation
1. Cultures are dissimilar and always stay dissimilar
, 2. Cultures are convergent: gradually growing into one (result of consumerism)
3. Cultures are hybrid (hybridization): cultures will mix products and foods, but nog
entire values and attitudes
Glocalization
Creation of products and services intended for the global market, customized to suit local
cultures. McDonalds serves fast food globally, but specific products in specific countries.
Losers of globalization: anti-globalists (against power in hands of few, want to spread power
again) and anti-EU parties.
Global managerial skills: necessary after globalization
= managerial competences + multicultural competences
Multi-/cross- cultural competences: influenced by independent variables like personal
attributes, personal skills and cultural knowledge, but moderated by cultural distance and
institutional ethnocentrism. Independent variables are influenced by cross-cultural training
and behavioural learning.
Global management competencies:
Starts with basic knowledge > threshold traits > attitudes and orientations > interpersonal
skills > system skills
Multicultural competences: individual’s ability to step outside cultural boundary, deal with
cultural differences in a way that is appropriate and effective. General term for:
- Cosmopolitanism: being externally oriented, all humans are single community.
Cosmopolitanism Orientation is scale of three essential qualities:
o Cultural openness: open to engage and learn from other cultures
o Global pro-sociality: moral obligation to respect and promote human rights
o Respect for cultural diversity: high appreciation for cultural differences
- Cultural Intelligence: individuals (dynamic) ability to function and manage effectively
in culturally diverse environment. Consists of four dimension:
o Meta-cognitive aspect: thinking about thoughts (e.g. I am conscious of
cultural knowledge I use), highest state of awareness
o Cognitive aspect: having knowledge (e.g. I know the rules for behaviors)
o Motivational aspect: goal setting, expectation, self evaluation (e.g. I am
confident that I can get accustomed)
o Behavioral aspect: execution of relevant behavior (e.g. I can pause and silence
differently to suit different situations)
Cultural Intelligence can be influenced by study/living abroad, early
travel (on your own), languages learned or personality.
Cultural Intelligence has effect on cultural sales (moderated by firm
motivational CI and firm diversity climate)
