Impact of Hofstede's Cultural Dimensions on Global Business Strategies

This report delves into Hofstede's cultural dimension theory, a framework for understanding cross-cultural communication and its effects on international business. The introduction establishes the theory's foundation, highlighting its significance in quantifying cultural differences and their impact on business practices. The main body provides a detailed overview of Hofstede's six dimensions: power distance, individualism vs. collectivism, uncertainty avoidance, masculinity vs. femininity, and long-term vs. short-term orientation, explaining how each dimension influences people's behavior and attitudes in the workplace. The report then discusses the importance of these dimensions in international business, emphasizing their role in shaping global strategies and maintaining relationships across different countries. The report also offers suggestions, such as the need to balance individualism and collectivism and the importance of encouraging expressive natures for innovation. In conclusion, the report underscores the importance of understanding national cultures for international business, enhancing marketing networks, and understanding customer behavior. The report is a valuable resource for students seeking to understand the complexities of global business and cross-cultural management.

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FOUNDATION

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...........................................5
3. Suggestions on Hofstede’s cultural dimensions.................................................................................6
CONCLUSION..........................................................................................................................................6
REFERENCES..........................................................................................................................................7

INTRODUCTION
Hofstede’s cultural dimension theory is based on cross-cultural communication. This
theory is founded by Geert Hofstede in between 1967 and 1973 (Shockle and et.al., 2017). It is
one of the most important theory which can quantify differences in culture. This theory refers to
effects on culture of society. It calculates value of members and this value represents the
attitude and behavior of people which will recognize their participation in growth of
international business. This report is bout significance of hofstede’s culture dimension theory. It
also frames suggestions for this cultural theory for more improvement and to make it for critical
and specific.
MAIN BODY
1.Hofstede’s cultural Dimension theory
Hofstede's cultural dimensions 1

Hofstede’s cultural dimension theory describes about people culture and behavior towards
their work. It represents about people attitude in their though process or how they behave (Kim,
2017). This theory is based on researches in cross-cultural psychology and also by inviting
researches in different fields of international business and communication. This theory has
different dimensions which measure the value of culture and behavior of people.
1. 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: - it represents that power is not distributed equally in society due to which
they fight for their rights (Venaik, 2016). In this, owner of business always questions by its
employee due to which they are unsuccessful in achieving business objectives.
High power distance: - it represents that power is distributed equally. It indicates respect for
high authorities of business which lead to great success in achieving business objectives.
2. Individualism Vs Collectivism: - This dimension indicates that people are represented
in group or individual in societies.
Individualism: - It represents that self individual is focused on achieving self goals. This has
high score which indicates loose connections with members and responsibility of sharing
information is little (Eisend and et.al., 2016).
Collectivism: - it represents the tight integrated relationship between people in a group who
have strong trust on each other. In this employee ready for sacrificing for self but in benefit for
organization or group.
3. Uncertainty avoidance- This index indicates the level of anxiety that a member can
cope with. It shows the tolerance on people behavior for ambiguity.
Low uncertainty avoidance – In this, people are ready for change or innovation. It helps them to
make decisions comfortably or openly. It leads to informal attitude of people which helps in
welfare of organization (Boubakri, 2016).

High uncertainty avoidance – In this, people avoid uncertain situations. Expressive people are
present in this index that shows anger or emotions whenever necessary. People know what the
truth is and they know this truth will dictates everything.
4. Masculinity Vs Femininity: - Under this index, roles of men and women are described.
In masculine, role of men overlaps women whereas in femininity, role of women
overlaps men (Minkov, 2018). It recognizes the gap between male and females.
High MAS – in this, it is expected from men to be tough, understanding, healthy and wealthy. It
is supposed by society that in mastery of job, more value is by men (Merkin, 2018).
Low MAS – In this, women are found to be caring, modest, a way to cooperation. In societies,
men are considered to be more powerful and intelligent. Women are realized to be competitive
and assertive.
5. Long Vs Short term orientation: - This dimension refers to the past connection with
the future achievements.
Low score – this index shows for short term orientation. In this people are past oriented and they
believe in live in present only (Kim, 2015). They maintain traditions and norms honor
according to time. In this, people are more focused on finding absolute truth.
High score – this index shows for long term orientation. In this people are pragmatic about
future decisions. They encourage new ideas and efforts based on modern world for future
planning. In this, people are more aligned to find virtue.
2. Importance of Hofstede’s cultural dimensions on international business
Culture across the world is getting interconnected more and more and business increased
their network to expand globally to increase market share and their productivity.. But mangers
of business need to have good culture and behavior to maintain relation with others in different
countries (Hofstede, 2014). So, it’s necessary to calculate the value of culture. Hofstede’s
cultural dimension theory helps to measure above mentioned dimensions which suggest some
effective tools for affecting their thinking process.

3. Suggestions on Hofstede’s cultural dimensions.
I disagree with individualism Vs collectivism dimension because in this, collectivism,
showing too much emotions and anger can lead to harmony in endanger. Both individualism
and collectivism play their individual role important. While doing work in a group, self
performance is must. Hence we can say that group performances are successful only when
individual performance is good. In individualism, they want self respect. But in collectivism
also, they want respect (Volkema and et.al., 2016). As per my suggestions, collectivism people
must avoid to give negative points or feedback in public because it can disappoint others. And
for individualism, I want to suggest that to do not mix personal life with professional life.
Otherwise it affects relations and leads to mind stress which affect growth of organization or
business. Also, individual should encourage themselves to have debate and increase their
expressive nature for innovating ideas (Kim, 2015). Individualism emphases on enjoyment,
pleasure, happiness and fun individualism is a part of collectivism only. In collectivism,
behavior is regulated as per norms of group.
CONCLUSION
This report summarized about Hofstede’s cultural dimension theory which are used to
measure the culture values of people in societies. It was normalized that culture of organization
is based on norms, behavior and value. Norms were expectations in behavior to have high
clarity and specifications to make decisions based on rules and regulations. It evaluated the
suggestions made for cultural dimension theory for improvement. At last, it is concluded that
culture of nation is important for international business for enhancing their marketing network
and for understanding behavior of customers.

REFERENCES
Books and journals
Kim, S., 2017. National culture and public service motivation: investigating the relationship
using Hofstede’s five cultural dimensions. International Review of Administrative
Sciences. 83(1_suppl). pp.23-40.
Venaik, S. and Brewer, P., 2016. National culture dimensions: The perpetuation of cultural
ignorance. Management learning. 47(5). pp.563-589.
Eisend, M. and et.al., 2016. The influence of organizational and national culture on new
product performance. Journal of Product Innovation Management. 33(3). pp.260-
276.
Boubakri, N. and Saffar, W., 2016. Culture and externally financed firm growth. Journal of
Corporate Finance. 41. pp.502-520.
Minkov, M., 2018. A revision of Hofstede’s model of national culture: old evidence and new
data from 56 countries. Cross Cultural & Strategic Management. 25(2). pp.231-256.
Hofstede, G., 2014. Dimensionalizing cultures: The Hofstede model in context. Online
readings in psychology and culture. 2(1). p.8.
Volkema, R. and et.al., 2016. The influence of power and individualism-collectivism on
negotiation initiation. Revista de Administração Contemporânea. 20(6). pp.673-692.
Kim, R. and Coleman, P.T., 2015. The combined effect of individualism–Collectivism on
conflict styles and satisfaction: An analysis at the individual level. Peace and
Conflict Studies. 22(2). pp.137-159.
Merkin, R.S., 2018. Masculinity-Femininity Applied to Cooperative and Competitive
Facework. In Saving Face in Business (pp. 137-164). Palgrave Macmillan, New
York.
Shockley, K.M. and et.al., 2017. Cross-cultural work and family research: A review of the
literature. Journal of Vocational Behavior. 101. pp.1-20.
Online
Hofstede’s Cultural Dimensions 2017 [Online]. Available through. <https://www.business-to-
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