Hofstede’s Cultural Dimension Theory and Its Importance for International Business

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Table of Contents
INTRODUCTION.....................................................................................................................................3
MAIN BODY............................................................................................................................................3
1.Hofstede’s cultural Dimension theory.................................................................................................3
2. Importance of Hofstede’s cultural dimensions on international business...........................................4
3. Suggestions on Hofstede’s cultural dimensions.................................................................................5
CONCLUSION..........................................................................................................................................5

INTRODUCTION
Hofstede’s cultural dimension theory refers to researches in cross-cultural
communication. This theory is founded by Geert Hofstede. It is developed and updated in
between 1967 and 1973. It is included in top list for measuring cultural values. It calculates
cultural value of society members in terms of their attitude and behavior. This value quantifies
cultural dimensions of people which will recognize their effective and efficient participation in
growth and success of international business. This report signifies about hofstede’s culture
dimension and its importance for achieving business objectives. It outlines suggestions or
recommendations for changes in theory to make it more effective and specific.
MAIN BODY
1.Hofstede’s cultural Dimension theory
Hofstede’s cultural dimension theory refers to culture of people and their behavior towards
work in organization. It represents that people attitude in thought process of their working
nature and how they react accordingly (Beugelsdijk, Kostova and Roth, 2017). This theory says
about norms and value of people behavior which will affect both individual and organization
performance. This theory has different dimensions for measuring norms and value which are
described below:
1. Individualism Vs Collectivism: - This dimension indicates that people are represented
in group or individual in societies. High score represents individualism which outlines
that self individual is focused on achieving self goals. It indicates loose connections with
members and responsibility of sharing information is little. Low score represents
collectivism and it shows the tight integrated relationship between people in a group
who have strong trust on each other. In this employee is ready for sacrificing their
achievement for self but in benefit for others like for group or whole organization.
2. Power distance: - This dimension measures about the powerfulness of people in society
and also expects that power to people should be distributed equally. Low power distance
represents that power is not distributed equally in society due to which they fight for
their rights. In this, owner of business always questions by its employee due to which
they are unsuccessful in achieving business objectives. High power distance represents