Cross Cultural Management: A Comparison of Pakistan and Malaysia Based on Hofstede's Dimensions of Culture

This report compares the cultural differences between Pakistan and Malaysia based on Hofstede's dimensions of culture. It also suggests product localization strategies for Marrybrown, a Malaysian fast food chain, to expand its business in Pakistan.

Running Head: CROSS CULTURAL MANAGEMENT 0
CROSS CULTURAL MANAGEMENT
(STUDENT NAME)
10-18-2018

CROSS CULTURAL MANAGEMENT
Abstract
Cross-cultural management is reviewing countrywide culture and then adapts that to
management practices of the organization. The significance of cross-cultural
management is to clinch local culture to make the organization successful in the
international market. The Hofstede’s dimension of culture, this theory will be the base
for contrast and comparison of culture of Pakistan and Malaysia. From this comparison,
it was observed that Malaysia society reflect hierarchical order acceptance, it is a
collectivistic society, its society reflects normative culture, the society has less
preference for uncertainty avoidance, and culture is indulgence of the nation. Whereas,
the Pakistan culture indicates no clear preference in dimension of power distance index,
Long-Term Orientation versus Short-Term Normative Orientation, the society is
collectivism, uncertainty avoidance is very high, and culture reflects highly restrained
society. Moreover, both the societies are a combination of toughness and tenderness.
A fast food chain of Malaysia that is “Marrybrown” to expand its business in Pakistan
needs to introduce product as per the local culture of the host country. The three
suggested products are fried chicken and burgers, deserts, and biryani with a traditional
and western fusion.
1 | P a g e

CROSS CULTURAL MANAGEMENT
Contents
Abstract..............................................................................................................................1
Introduction........................................................................................................................4
Hofstede’s Dimensions of culture......................................................................................5
Six models of Hofstede’s Dimensions of culture and cultural difference..........................5
1. Power distance index...........................................................................................5
Malaysia......................................................................................................................5
Pakistan......................................................................................................................5
2. Masculinity versus femininity................................................................................5
Malaysia......................................................................................................................6
Pakistan......................................................................................................................6
3. Individualism versus collectivism.........................................................................6
Malaysia......................................................................................................................6
Pakistan......................................................................................................................6
4. Long-Term Orientation versus Short-Term Normative Orientation......................6
Malaysia......................................................................................................................7
Pakistan......................................................................................................................7
5. Uncertainty avoidance index................................................................................7
Malaysia......................................................................................................................7
Pakistan......................................................................................................................7
6. Indulgence versus Restraint.................................................................................8
Malaysia......................................................................................................................8
Pakistan......................................................................................................................8
Comparative data of Malaysia and Pakistan based on Hofstede’s culture theories
dimensions:................................................................................................................9
Malaysian organization to expand in Pakistan..................................................................9
Marrybrown....................................................................................................................9
Products....................................................................................................................10
Conclusion.......................................................................................................................12
References.......................................................................................................................13
2 | P a g e

CROSS CULTURAL MANAGEMENT
Introduction
Cross-cultural management is one of the method of management to embrace the native
culture. Cross-cultural management in international business seeks to understand the
countrywide cultures influence management practices. It recognizes differences and
similarities in culture in several practices of management and organizational context
(Stahl & Tung, 2015). Cross-cultural management is an important aspect that enhances
effectiveness in global management. People behaviors, attitude, and values are formed
through the culture they follow, which will affect managerial decisions while conducting
an operation or expanding organization in the international market. The purpose of
cross-cultural management is to create feasible structures of organization and
mechanism of management in several forms of cultural environment (Bird &
Mendenhall, 2016).
For this research, the target country selected is Pakistan. In this report, utilizing
Hofstede’s dimensions of culture, the differences between Pakistan and Malaysia
culture will be elaborated. For which understanding of Hofstede’s Dimensions of culture
will be included. Moreover, the comparison will be based on qualitative and quantitative
factors. The Malaysian organization that is, Marrybrown, need to expand their business
to Pakistan, for that the product localizations is required by the companies to fit into the
market of Pakistan will be discussed in this report.
3 | P a g e

CROSS CULTURAL MANAGEMENT
Hofstede’s Dimensions of culture
Geert Hofstede propounded the framework that is Hofstede’s cultural dimension theory
for cross-cultural communication. It explains the impact of various cultures of society
over the values of its stakeholders or members. In addition, the way these values are
related to the behavior and use structure derived through analyzing the structure. Six
dimensions are there in this model, which distinguish independent preferences from one
country to another. Therefore this model can be the base for comparison of the
difference in cultures of two countries (Mazanec, et al., 2015).
Six models of Hofstede’s Dimensions of culture and cultural
difference
Both quantitative and qualitative comparison between Malaysia and Pakistan is done
based on the following dimensions:
1. Power distance index
This dimension articulates the point to which the lower powerful fellows of a society
assent and presume that power is disseminated unevenly. The major problem is how a
society handles disparities among individuals (Brass, 2017).
Malaysia
On this aspect or dimension, Malaysia score 100 that are very high, which reflects the
society that accepts the hierarchal order, where not everyone needs any further
justification (Hofstede-insights, 2018).
Pakistan
The intermediate score for this dimension is 55, which means a clear preference cannot
be determined for Pakistan (Hofstede-insights, 2018).
2. Masculinity versus femininity
This component is related to “tough v/s tender,” in this masculinity represents a
preference of society in heroism, achievement, material success rewards, and
assertiveness. While, femininity part in this dimension reflects the preference for
4 | P a g e

CROSS CULTURAL MANAGEMENT
modesty, cooperation, quality of life, and caring for the weak. It is a consensus-oriented
society (Bakir & Rose, 2015).
Malaysia
This dimension of Malaysia is not determined because the score is 50, which is an
equal preference for both the components (Hofstede-insights, 2018).
Pakistan
For this dimension also, it is difficult to determine the preference of individuals from
Pakistan is Masculinity or femininity because the score is 50 on this dimension
(Hofstede-insights, 2018).
3. Individualism versus collectivism
Here, individualism is considered as the preferences for the social framework of loosely
knit, where people are expected to take their and their family care only. Whereas
collectivism can be defined as individual preferences for the framework of tightly knit in
a society, where people are expected to take care of other members in a group for
exchange for unconditional loyalty. This dimension tells that people in society reflect
themselves in terms of “we” or “I” (Triandis, 2017).
Malaysia
The score for this dimension is 26, which reflects it as a collectivistic society. Such
society fosters close relationships, where all the individuals are ready to take
responsibility for other members of the society (Hofstede-insights, 2018).
Pakistan
The score of Pakistan for this dimension is 14, which is very low. It indicates that
Pakistan is a collectivist society. This means that a due importance is given to
relationship and people are concern about the other members like family and friend.
Moreover, employee-employer relations are taken in moral terms, and promotions and
hiring decisions are taken into account in-group employees (Hofstede-insights, 2018).
4. Long-Term Orientation versus Short-Term Normative Orientation
Long-term considers the pragmatic approach while encouraging efforts and thrift in
recent education for as to be ready for the future. While normative orientation considers
5 | P a g e

CROSS CULTURAL MANAGEMENT
short term, where the preference is given to maintaining time-honored norms and
traditions and considering societal variations with suspicion (Minton & Kahle, 2018).
Malaysia
The score is low that is 41, which reflects that Malaysia’s culture is normative. The
individuals have a strong concern while the absolute truth is established; their thinking is
more of normative (Hofstede-insights, 2018).
Pakistan
Since the score is 50 for this dimension, telling the preference culture of the society is
not possible (Hofstede-insights, 2018).
5. Uncertainty avoidance index
This dimension reflects the extent to which individuals of society sense uncomfortable
with ambiguity and uncertainty. The fundamental problem consists of this dimension is
the way society deals that the future is uncertain and unknown and decide to whether lit
the future happen or try to control the future (Schmitz & Weber, 2014).
Malaysia
The score of Malaysia on this dimension is 36 and therefore has less preference for
avoiding uncertainty and the societies with low UAI believe that the rule must be
imposed to the extent of necessity and in case they are ambiguous, they must be
changed or abolished. For such a society, innovation is not considered as a threat
(Hofstede-insights, 2018).
Pakistan
The score for this dimension is 70 of Pakistan, which is very high as compared to that of
Malaysia that indicates high preference id given by people for avoiding uncertainty. It
indicates that rigid codes of behavior and belief and are not able to tolerate unorthodox
ideas and behavior. In such cultures, the emotional need for regulations and rules, urge
for hard work and be busy, time is money, punctuality and precision are norms, security
is a significant element, but innovation can be restricted (Hofstede-insights, 2018).
6 | P a g e

CROSS CULTURAL MANAGEMENT
6. Indulgence versus Restraint
Indulgence reflects a society, which allows unrestricted gratification of natural and basic
human drives related to having fun and enjoying life. While, restraint reflects the society
that overwhelms gratification of desires, and controls it, by creating strict social norms
(Sun, et al., 2018).
Malaysia
The score is high that is 57 which reflects that the culture is an indulgence of Malaysia.
It indicates the willingness of people to realize their desires and impulses with
references to having fun and enjoying life. They carry an optimistic attitude and works
with positivity and optimism. Moreover, spend more on leisure time and expend money,
as they desire (Hofstede-insights, 2018).
Pakistan
It is highly restrained society because the score for this dimension is zero, which is
extremely low. The society has a tendency to pessimism and cynicism. In addition, such
societies do not put much focus on leisure time and gratification of wants is controlled.
The perception of these individuals is that their action is to be restrained through social
norms (Hofstede-insights, 2018).
7 | P a g e

CROSS CULTURAL MANAGEMENT
Comparative data of Malaysia and Pakistan based on Hofstede’s culture theories
dimensions:
Figure 1: Malaysia v/s Pakistan (Source: (Hofstede-insights, 2018)
Malaysian organization to expand in Pakistan
Marrybrown
It is a Malaysian based fast food chain, initiated in 1981. It was Malaysia’s first fast-food
chain, which franchises with 138 or more restaurants in Malaysia. The products served
by the restaurant includes burgers, fried chicken, desserts, finger food, and beverages,
rice products, porridge, and noodles (marrybrown, 2018). The company to extend its
organization to Pakistan needs to consider the various cultural difference of the country
from the home country. Especially, food culture of the country is to be considered and
according to that, the products have to be introduced to offer in a restrained society of
Pakistan. The non-veg options must be increased to capture the fast food market in
Pakistan. As discussed above, Pakistan is highly restrained country; they are not ready
to spend leisure time or money as they wish. Therefore, a product worth spending must
be offered to the residents of Pakistan. Moreover, the price penetration strategy must be
followed. The mode of entry best suited for Marrybrown would be “Franchising”
(marrybrown, 2018).
8 | P a g e

CROSS CULTURAL MANAGEMENT
Products
Products are the most important aspect of the marketing mix because it is the physical
goods that are to be offered to the customer. If it is not good or as per expectation, no
other strategy can make an organization successful. For products to fit into the market
of Pakistan, it is important to make some innovation and add more products to its menu
card.
i. Fried chicken and Burgers
To keep footprints in the market, an organization can offer fried chicken with separately
sprinkled masala powder. Burgers variety can include both veg and non-veg options,
among which non-veg option must be many more according to the preferences. They
can also include corn burgers, egg burger, and chicken nuggets (marrybrown, 2018).
Chicken popper (like popcorns) can also be an innovative variety to offer. The most
important aspect of the culture of Pakistani is not allowing pig meat in the country; they
do not even prefer to take pig name casually. So most importantly, the cultural believes
of people must not be hampered while offering products in the country.
ii. Biryani/ flavored rice
Various rice products are offered by the organization in Malaysia. It can be included in
the menu in Pakistan but some innovation must be considered as per their local taste.
The preferred form of rice in the country would be flavored rice, fried rice, or biryani.
Moreover, the biryani must be offered with veg and non-veg ingredient options.
Nevertheless, rice-based products need to be limited, because the country is not much
fond of rice.
iii. Deserts
Due to the increase of global fast food chains in Pakistan, some changes in taste and
preferences had occurred, especially among youth. The western desserts can be
offered, like pastries, ice-creams, waffles, donuts. However, to target local people in
their festivals, special dishes in deserts can be introduced. It can be a combination of
traditional deserts of the country with a touch of western style. Like “falooda” is very
much preferred in a variety of ice creams. “sevaiyan kheer” is one of the popular
9 | P a g e

CROSS CULTURAL MANAGEMENT
traditional sweet consumed on the festival of Eid (desiblitz, 2018). The sevaiyan flavor
in other deserts can also be offered to attract local consumers.
10 | P a g e

CROSS CULTURAL MANAGEMENT
Conclusion
The objective of the report was to study the cross-cultural management. Individual
attitude, value, and behavior depend on culture, which is important to adapt in case, an
organization wishes to go international. The Hofstede’s dimension theory is helpful in
studying countrywide culture. It evaluates the influence of the culture of society over
believes and values of its members. The six dimensions of Hofstede’s are the base for
comparison of the culture of Malaysia and Pakistan, based on quantitative and
qualitative aspect. To conclude the comparison of the culture of this two country, power
distance index of Malaysia is 100 while the low score of Pakistan that is 55, which
indicates that Malaysia easily accepts the hierarchal order. When Masculinity versus
femininity dimension is considered, both countries tend to be same with 50 scores.
Uncertainty avoidance of Malaysia is low that is 36 with the complete contrast of 70
scores, that is very high of Pakistan. Indulgence versus Restraint dimension explains
the highly restrained society of Pakistan with zero scores.
Marrybrown, a Malaysian based fast-food chain would like to expand its business in
Pakistan. For this, the food culture of Pakistan is to be studied and the products need to
be developed of innovating to fit into the local market of Pakistan. Three products that
must be introduced in Pakistan market is fried chicken and burgers, biryani, and
deserts. Among these products, the variety must be according to the preference of local
customers, like instead of plain rice, flavored rice or veg and non-veg biryani should be
offered. In deserts, the traditional dish with a fusion of western deserts can be offered.
11 | P a g e

CROSS CULTURAL MANAGEMENT
References
Bakir, A. & Rose, G., 2015. A preliminary investigation of the reliability and validity of
Hofstede’s cross cultural dimensions. In Proceedings of the 2000 Academy of
Marketing Science (AMS) Annual Conference, p. 226.
Bird, A. & Mendenhall, M., 2016. From cross-cultural management to global leadership:
Evolution and adaptation. Journal of World Business, 51(1), pp. 115-126.
Brass, D., 2017. Cross‐border acquisitions and the asymmetric effect of power distance
value difference on long‐term post‐acquisition performance. Strategic Management
Journal, 38(4), p. 972.
desiblitz, 2018. 5 Traditional Desserts of Pakistan you Must Try. [Online]
Available at: https://www.desiblitz.com/content/5-traditional-desserts-pakistan-must-try
Hofstede-insights, 2018. Country comparison. [Online]
Available at: https://www.hofstede-insights.com/country-comparison/malaysia,pakistan/
[Accessed 05 10 2018].
marrybrown, 2018. Burgers. [Online]
Available at: https://www.marrybrown.com/marrybrown_menus-category/burger-meals
marrybrown, 2018. MENU. [Online]
Available at: https://www.marrybrown.com/menu/
marrybrown, 2018. Requirements. [Online]
Available at: https://www.marrybrown.com/franchise/requirements/
Mazanec, J., Crotts, J., Gursoy, D. & Lu, L., 2015. Homogeneity versus heterogeneity of
cultural values: An item-response theoretical approach applying Hofstede's cultural
dimensions in a single nation. Tourism Management, Volume 48, p. 299.
Minton, E. & Kahle, L., 2018. The subjective norms of sustainable consumption: A
cross-cultural exploration. Journal of Business Research, Volume 82, p. 400.
12 | P a g e

CROSS CULTURAL MANAGEMENT
Schmitz, L. & Weber, W., 2014. Are hofstede's dimensions valid? a test for
measurement invariance of uncertainty avoidance. interculture journal: Online-
Zeitschrift für interkulturelle Studien, 13(22), p. 11.
Stahl, G. & Tung, R., 2015. Towards a more balanced treatment of culture in
international business studies: The need for positive cross-cultural scholarship. Journal
of International Business Studies, 46(4), p. 391.
Sun, J., Yoo, S. & Park, J., 2018. Indulgence versus Restraint: The Moderating Role of
Cultural Differences on the Relationship between Corporate Social Performance and
Corporate Financial Performance. Journal of Global Marketing, p. 1.
Triandis, H., 2017. Generic individualism and collectivism. The Blackwell handbook of
cross
‐cultural management, pp. 16-45.
13 | P a g e