Cultural Theory In Use

Journal of Public Affairs J. Public Affairs 8: 261–280 (2008) Published online in Wiley InterScience (www.interscience.wiley.com) DOI: 10.1002/pa.290

Cultural theory in use: the intersection of structure, process and communication in business practice Camille P. Schuster 1*, y and Michael J. Copeland 2z 1 2

College of Business Administration, California State University San Marcos, USA Proctor & Gamble, Cincinnati, Ohio, USA




Examining and understanding the culture of 200þ countries to determine how business is conducted in those countries is a daunting and overwhelming prospect. By combining theories of culture, it is possible to create a Classification Of Cultures Model using Time, Task and Relationship concepts. However, this model does not suggest how to adapt when conducting business in a particular political/economic environment. Continua of cultural elements related to conducting business are created based upon structural elements, process elements and communication elements. Combining the continua with the Classification of Cultures Model creates the Global Business Process Model. This framework is a way to capture the array of cultures, identify similarities and differences in business practices, and provide a starting point for creating adaptive strategies and behaviours. Copyright # 2008 John Wiley & Sons, Ltd.

Introduction Culture is a total way of life held in common by a group of people. Learned similarities in speech, behavior, ideology, livelihood, technology, value system and society bind people together in a culture. It involves a communication system of acquired beliefs, perceptions and attitudes that serves to supplement and channel instinctive or inborn behaviour (Jordan and Rowntree, 1986). *Correspondence to: Dr Camille P. Schuster, College of Business Administration, MH 355, California State University San Marcos, San Marcos, CA 92096, USA. E-mail: [email protected] y Professor of Marketing. z Human Resources Manager (retired).

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As a concept, ‘culture’ has been a topic of interest in sociology, anthropology, ethnography, psychology, communication and education. Investigations of culture are multifaceted leading to many different definitions, areas of study and theories. Each discipline examines culture from its particular perspective: how groups function, how the culture functions, how to learn about cultures, how people within a cultural group think, the relationship between culture and communication style and how people in a particular culture learn. Just a few years ago, ‘cultural pioneers’ were the only people responsible for knowing and acting appropriately in another country. With today’s communication vehicles, suppliers, account representatives, order processors, Journal of Public Affairs, November 2008 DOI: 10.1002/pa

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contact centre employees or purchasing department employees may be working in another country, so every interaction has potential cultural connotations. Business practices are embedded within a culture, so learning cultures, monitoring changes in culture and understanding the impact of culture on business practices is important for success (Yip, 1995; Kanungo, 2006). Every employee who interacts across borders needs to be culturally aware and adept at adjusting personal style as appropriate to the situation. Remembering, retrieving and applying each individual piece of information from every cultural group around the world are not feasible or practical techniques in a dynamic business situation. Success, however, depends on being able to modify the home country approach to business practices in international locations. In any given culture, government policies, legal systems and/or the use of hierarchy for decision-making create the structure within which business functions. How activities flow, adherence to norms of punctuality and the integration of one’s public life with business activities create the process of how things happen. The role of truth, use of words, style of language and forms of logic create expectations for the role of communication in business activities. The purpose of this paper is to establish a cultural model that creates a theoretical perspective for understanding the intersection between general concepts of culture, including the structure of public affairs, the process of conducting business and appropriate forms of communication, as they apply to the practice of business. The first section of the paper will address theories of culture commonly used in the marketing literature. The second section will present new models. The third section will address the intersection between the models and provide examples of adaptation.

Theories of culture U.S. anthropologist Edward T. Hall distinguished cultures on a continuum of highand low-context communications (Hall, 1976). The low-context cultures using explicit Copyright

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languages are the Swiss, German, Scandinavian and North American. An explicit language, according to Hall (1976), is one in which words have specific meanings. Context plays a small role in ascertaining the meaning of what is said because meaning is specifically related to the words being used. The cultures in the middle of the continuum are French, English and Italian. The high-context cultures using implicit languages are Spanish, Latin American, Arabian and Japanese. An implicit language, according to Hall (1976), is one in which words have many meanings depending upon the relationship of the people and companies involved in the conversation, the topic and the context. Words are ambiguous and have many meanings. For example the Japanese word ‘sumimasen’ means ‘please’, ‘thank you’, ‘I’m sorry’ or ‘excuse me’, depending upon the situation. This concept of explicit and implicit languages is an important and useful continuum used in many contexts. However, Hall’s (1976) work excludes the languages of a number of emerging countries that are now strong players in the global economy such as Russia, India, China, Indonesia, Ghana, Nigeria, Hungary, Czech Republic or Estonia. While the high/low-context concept is significant, the absence of countries and languages important in today’s marketplace is not helpful for guiding adaptation in many current business situations. Hall (1959, 1983) also identified a number of cultural constructs related to time. Monochronic time views time as sequential or linear; western cultures are identified as monochronic. Western cultures structure time around tasks and view time as money in business situations. This orientation is consistent with a belief by western countries that governmental, political and legal systems, processes and policies provide the structure for completing tasks efficiently. Polychronic time views time as simultaneous with several events happening at the same time and is associated with those cultures that are less task oriented and more relationship oriented. Eastern and Latin American cultures have a more flexible view of time, believe that family and relationship Journal of Public Affairs, November 2008 DOI: 10.1002/pa

Cultural theory in use

activities are an equally valid use of time and complete tasks when time permits, but not at the expense of personal or familial requirements. Asian and Middle Eastern countries view relationships as the gateway for doing business so maintaining relationships is more important than completing a task. Hofstede (1980) began his work by studying the values of people who worked for IBM in over 50 countries and identified four dimensions of culture: power distance, collectivism versus individualism, femininity versus masculinity and uncertainty avoidance. The research results identify a score for each country on each dimension. Knowing the relative position of each country on each dimension reveals similarities and differences among countries. When examining similarities and differences across countries, it is relatively easy to determine how one country scores on all five dimensions compared to your home country. These concepts have formed the basis of much empirical work, some of which supports the use of these concepts and some of which does not (Hoppe, 1990; Smith, 1994; Akour et al., 2006; DeJong et al., 2006; Harzing, 2006; Lee and Croker, 2006; Srite and Karahanna, 2006; Guss and Wiley, 2007; Johnson, 2007; MacNab et al., 2007). One major work addressing the challenge of integrating concepts and countries (deMooij, 2005) applied the concepts across countries in an analysis of how the concepts are portrayed in advertising. The results of Trompenaars’ (1998) studies have many similarities with the research results of Hofstede (1980, 1983, 1997) in that the approach is to examine and compare countries on individual values. Comparing many countries on one value is relatively straightforward. Comparing more than two countries on many values is difficult. The insights are valuable but application of the model is difficult for businesspeople who generally find themselves both short of time and asked to make comparisons and decisions about groups of countries within a close deadline. Usunier’s (1996) book specifically addresses applications in marketing: consumer behaviour, market research, marketing strategy, Copyright

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defining market clusters, product policy, brand image, price policy, distribution channels, communication, advertising, personal selling and negotiations. In this book, concepts of culture, such as time, face, need for precise answers or loyalty, are examined and related to marketing decisions. The breadth and depth of the material in this book is excellent and an important tool for thinking about how culture affects marketing decisions. However, as with Hofstede’s and Trompenaar’s work, there is no unifying model for understanding how to use multiple concepts across several countries to create marketing strategies. The Cultural Orientations Model created by Walker et al. (2003) is a ‘framework for exploring and mapping the components of culture at any level’. The 10 dimensions in this model include those that provide a basic shared orientation for behaviour at any level in social life. Using these dimensions to explore a culture is an excellent basis for understanding many levels of social behaviour. The book provides an in-depth examination of each dimension and how it applies to cultural analysis. However, that is a level of detail that businesspeople are not likely to use when they have a very limited time to prepare for a trip abroad, which may include more than a single country or culture and meetings with participants from a variety of locations at the same time. The theories and models created by these giants in the field focus on specific elements of culture such as time, language, values, space or competitiveness. They do not specifically address the interdependence of concepts within and across countries applied to the conduct of business. The next section presents a model that creates a visual tool representing the interplay between public structure, process and communication related to business practices.

Cultural models, public structure and business practice Commercial, political and economic systems have become increasingly interdependent over Journal of Public Affairs, November 2008 DOI: 10.1002/pa

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the past three decades. Political and economic systems are part of the public structure that interacts with personal and organizational culture to impact business practice in a particular geography. All parts of an organization now routinely operate across multiple time zones and cultures. Since not every employee is a student of culture, and many still do not accept that culture has any relevance to their objectives, a model that represents the application of cultural constructs in business situations would be a useful tool to orient and guide planning, decisionmaking and adaptation. Several caveats are necessary regarding the two models presented in this section. First, the fundamental culture of a country changes slowly over generations or in response to specific traumatic national events. Therefore, a static assessment of a culture is generally representative but not specifically descriptive. That said, cultures are dynamic and in a constant evolutionary state, albeit somewhat invisible to the outsider. This is paradoxical, but evident in surface behaviours, trends and fads, which appear to be sudden and dynamic, but have little lasting affect on the culture of a country or region. Second, each country exhibits a range of cultures. Each region, major city and/or ethnic group has its own set of cultural assumptions that are related to the country’s overall culture but are not identical. Third, each person’s personal socialization and development affects his or her cultural assumptions. Therefore, a static set of cultural assumptions, based on a general understanding of norms or specific behaviours, might not be appropriate for the individual with whom one meets to conduct business. The models presented here are meant to guide thinking not to represent the behaviour of specific individuals.

Classification of Cultures Model Assumptions regarding the use of time, the approach to the task at hand and the role of relationships in making business decisions vary Copyright

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throughout the world. While 24 hours a day is a constant throughout the world, people use that time differently. Hall’s (1959, 1966, 1976, 1983) concepts of time relate to how people in particular cultural groups use time. Those who perceive time as monochronic see time as linear or sequential, even referring to this intangible ‘as money’ and are quick to not ‘waste’ it. Time must be used wisely to accomplish tasks. Spending time, developing and/or maintaining relationships are less important than accomplishing tasks by the designated deadline to those with a monochronic view of time. Those who perceive time as polychronic find it normal to allow several events to happen at the same time or for time to expand like ‘rubber’. While accomplishing tasks may be an important goal, developing and/or maintaining relationships may be equally or more important meaning that time can be taken away from task accomplishment to use on deepening, developing or repairing a relationship. Those with a polychronic approach to time expect interruptions involving important issues that may be family, relationship or task related. Completing a task by a deadline may not be the most important goal if a more important issue involving a critical relationship surfaces. Hofstede’s (1980, 1983, 1997) concepts are helpful for identifying how people work within organizations. The concept of uncertainty avoidance relates to the need to know or control what will happen. Germany has a moderately high score (65) and, in Germany, agendas are normally circulated well before a meeting so everyone will arrive prepared to discuss the items on the agenda (www. geert-hofstede.com/hofstede_dimensions.php). Japan has a very high score (92) and, in Japan, meetings are generally very formal with the expectation that no decisions can be made regarding an idea proposed at that meeting because the group needs to meet to develop consensus on the new idea. The concept of personal distance refers to how accepting people at lower levels of society are to the idea that those who have higher levels of status and power should be allowed to follow Journal of Public Affairs, November 2008 DOI: 10.1002/pa

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different rules. The patriarchal society of Mexico has a high score (81) so decisions in Mexico are made by those who have status and authority at the top of the hierarchy. Sweden, on the other hand, has a low score (31) and is a country in which management practice encourages individual empowerment and decision-making. The concept of individualism/collectivism refers to whether decisions are made for the benefit of individuals or groups. With a low score (18), South Koreans generally make decisions as a group so one or two representatives attending a meeting usually do not have the authority to make a commitment for the company. With a high score (90), Australian businesspeople are usually empowered to make decisions on behalf of their company. The concept of masculinity/ femininity refers to the importance of accomplishments versus the importance of nurturing efforts. With a relatively high score (69) Mexicans are more concerned with accomplishment, while Swedes with a low score (5) are more concerned with making sure everyone is assured quality of life. All of these concepts are embedded in the structure of government and the process of doing business. Studying concepts individually yields great insight and understanding about people of a particular culture, how they look at the world, or might behave in a particular business situation. However, remembering the specific position of each country on each of Hofstede’s, Trompenaars’, Usunier’s, the Cultural Orientation Model’s, or Hall’s dimensions and how those dimensions interact with each other to create the structure, process and communication norms that impact business practice across countries is extremely difficult. Since many employees in organizations face the challenge of conducting business with people from other countries, often in second or third languages, often having little time for preparation, there is a need for cultural information to be classified in a way that makes it easy to recall and apply. Tucker (1982) created a model that placed countries on a continuum based upon these concepts and presented it at Procter & Gamble. The model Copyright

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was adapted by Michael Copeland (1987, 1988, 1993) at Procter & Gamble. After a modification by Ballon, (1994) at Sophia University in Tokyo, Schuster and Copeland (1996) published the Cultural Classification Model that places countries or regions on a continuum anchored by the concepts of Task, Relationship and Time. In the succeeding 10 years, eastern and central European countries have changed considerably during their transition to a free marketplace. China continues in its journey to create a socialist, free marketplace philosophy. Countries in Africa are developing at different stages and are becoming more active participants in the world economy. India is also emerging as a strong economic player. The concepts used as anchors in the model continue to be important dimensions of cultures related to how time is spent on business activities. Decisions about classifying countries or regions depend upon whether the differences within a group of countries are greater or smaller than the differences with the groups on either side in the model. The classification has been updated in the Classification of Cultures Model (Schuster and Copeland, 2006) to reflect the different positioning of countries as their orientation towards Task, Relationship and Time adjusts during their transition to a free marketplace (Figure 1). This model is a useful tool for identifying similarities and differences among countries by visualizing where a country or region is placed on the model. This is important for businesspeople who move quickly from one area of the world to another or who are going to a country for the first time. The model provides a broad framework for quickly placing a country in terms of the Task, Relationship and Time dimensions. However, there are other important elements of culture that are distinctive, need to be included in business planning and have significant impact on the conduct of business. The Classification of Cultures Model is not sufficient for an in-depth understanding of culture and/or knowing how to adapt to do business successfully in a country or region, Journal of Public Affairs, November 2008 DOI: 10.1002/pa

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Figure 1. Northwestern and Central Europe includes the countries to the north and west of Switzerland including the city of Paris but not the rest of France. Mediterranean Europe includes France (with the exception of Paris), Spain, Portugal, Greece and Italy. Eastern Europe and Russia includes the former Soviet block of countries. From Schuster and Copeland. Global Business Practices,1E. # 2006 South-Western, a part of Cengage Learning, Inc. Reproduced by permission. www.cengage.com/permissions

but it does provide a sound basis for preparation and planning.

Elements of business culture continua model Every culture has a unique view of the world; every community or organization within that culture has its own method of operation within that culture; every individual has his or her own personality and set of values. While successful businesspeople adapt to individuals in specific business situations, understanding the world as billions of individuals is not feasible for people involved in either global government or commerce. Identifying and understanding the elements of culture is an important first step but does not necessarily address the conduct of business. Classifying cultures according to Task, Relationship and Time is also helpful for comparing how groups view business tasks. However, neither of these approaches takes the conceptual Copyright

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information and describes how it impacts the practice of business. Doing business in a particular country or region is directly affected by that country or region’s cultural approach to the structure of the business environment which is created out of cultural norms towards the role of government, rule of law and sense of hierarchy in that culture (Yip, 1995; DeJong et al., 2006; Kanungo, 2006; Yasin and Yavas, 2007). Doing business is also constrained by the accepted and expected processes for doing business—how activities flow, expectations regarding punctuality or the separation between private and public life (Yasin and Yavas, 2007). These constraints affect where and when business takes place. Business is also affected by the way people communicate. Whether words have explicit or implicit meaning has a major impact on the role of contracts. Both style, whether direct or indirect, and the form of logic determine how information is presented and whether it is perceived as persuasive (Harzing, 2006; Guss and Wiley, 2007). Journal of Public Affairs, November 2008 DOI: 10.1002/pa

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Truthfulness has an immediate and consequent effect on the credibility of communication which is foundational when establishing relationships or creating agreements. The combination of beliefs, attitudes and values in each country or region creates different positions on all of these elements. Countries can be placed on each of these continua by combining theoretical and empirical information. The next section describes positions on each continuum (Figure 2).

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Structure (Role of Government, Rule of Law, Sense of Hierarchy) The governing philosophy in a country determines the degree of freedom companies have for conducting business, resulting, in general, from the government’s adoption of a free trade or central control philosophy or some variation of the concept. For example the legacy of noblesse oblige in Europe carries through in the current government which is

Figure 2. Elements of Business Culture Continua.

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empowered to protect its companies and take care of its citizens. Transitional countries may not have a strong system of government or well-established rule of law. As a result, hierarchy, status and place within a strong social structure provide the constraints lacking in the political system. Western countries with a strong task and time orientation rely heavily on a legal system that specifies either what business must do or what business cannot do. Consistent enforcement of the laws creates transparency and determines the reliability of these political systems. In countries with unstable governments and legal systems, the informal hierarchy among citizens in that country provides the constraints, guidelines and protections for doing business.

Stripp, 1991). These systems, procedures or laws can be relied upon and are consistently enforced, thereby creating transparency in business practice. At the other end of the continuum, countries, such as Russia, Indonesia or Nigeria, have not created systems and procedures that are routinely and equitably enforced throughout the country but rely more on a situational or pragmatic approach to conducting business (Renwick, 1982; Gosling, 1990; Wosinski and Zischke, 1992). While difficult to accept for some businesspeople, ends often justify the means in countries without an established or respected rule of law. Adherence to norms, established within accepted networks, is often more important than abiding by laws and government policies.

Role of Government

On one end of the continuum are countries such as the United States, Australia and Canada, which were founded on Adam Smith’s view of a laissez-faire government that creates policies to allow business activities to flourish in a free marketplace (Harris, 1982; George, 1983; Miller, 1987; Zemke, 1988). On the other end of the continuum, are countries, such as Taiwan or Cuba, that allow government, either central or local or both, to be directly involved in business activities (Rotzoll, 1986; Zamet and Bovarnick, 1986; Garten, 1992; McGregor, 1993a,b; Marble and Lu, 2006). A more centrist approach is taken in countries such as Japan or Singapore, in which government provides policies, goals or directions for the business community but is normally not a partner in business agreements (McCooey, 1984; About, 2003).

Rule of Law

At one end of the continuum, countries, such as Germany or Great Britain, believe that systems and procedures created by an approved process establish the guidelines that govern business transactions (Ghauri, 1986; Nye, 1987; Harris and Moran, 1991; Moran and Copyright

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Sense of Hierarchy

Countries, such as Australia and the United States espouse the value of equality on one end of the continuum, meaning that each individual has the same set of rights, obligations and duties (Fieg and Blair, 1975; Wallin, 1976; Winham, 1979; Hofstede, 1980, 1983, 1997; Graham and Herberger, 1983; Hawrysh and Zaichkowsky, 1983; Nadler and McScoggins, 1993; Campbell, 1994). No one has special privileges because of position, birth or wealth. Individuals are empowered to make decisions, take risks, undertake new ventures or solve problems on their own or as delegated by their organization. At the other end of the continuum, countries, such as Argentina and Japan, have hierarchical systems in which people of high status are expected to have special privileges (Yoshimo, 1968; Guittard, 1974; Wallin, 1976; Hofstede, 1980, 1983, 1997; Hawrysh and Zaichkowsky, 1983; Copeland and Griggs, 1986; Hartman, 1987; Mendosa, 1988; Hill and Birdseye, 1989; Harris and Moran, 1991; Chatterjee et al., 2006; Marble and Lu, 2006). Individuals know their position within the hierarchy and adhere to the norms of the group. In countries with Journal of Public Affairs, November 2008 DOI: 10.1002/pa

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known and respected hierarchical systems, the comfort and familiarity of implied expectations make it easy for the local people to conduct business, while creating a difficult dynamic for the uninitiated foreigner, who may not understand with whom to deal or when to ask for third parties to intervene. In countries without well-established and wellenforced political and legal systems, the hierarchies within informal networks create and enforce group norms. The form of government, rule of law and/or importance of hierarchy determine how businesses can interact with one another and to what guidelines of individual behaviour individuals need to adhere for success when conducting business.

Process (Punctuality, Flow of Activities, View of Privacy) Time is conceptualized in a number of different ways. A monochronic view perceives time as moving forward in a linear and sequential fashion with segments clearly defined (Graham and Herberger, 1983; Hawrysh and Zaichkowsky, 1983; Copeland, 1986; Miller, 1987; Joy, 1989; Laurent, 1991; Salacuse, 1991). A polychronic view perceives time as moving forward in a nonlinear and simultaneous fashion (Alghanim, 1976; Lee, 1980; Catoline, 1982; Copeland, 1986; Copeland and Griggs, 1986). A flexible view of time perceives that there is always more time to be used on a given activity (Huneeus, 1984; Mendosa, 1988; Laurent, 1991; Moran and Stripp, 1991). A cyclical view of time perceives time as moving in phases with each event being given the amount of time it needs (Renwick, 1982; Hawrysh and Zaichkowsky, 1983; Ghauri, 1986; Fadiman, 1989). Knowing how a particular culture views time is important for understanding how business activities will likely flow and how individuals are expected to use time. The value of a culture regarding the separation of public and private life is important for understanding which activities are appropriate in which situations Copyright

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as well as when personal or business topics are appropriate for discussion.

Punctuality

Some countries, such as the United States and Netherlands, view time as fixed and linear; time can be segmented into discrete blocks (Kennedy, 1967; Wallin, 1976; Saxe and Weitz, 1982; Galante, 1984; McCaffrey and Hafner, 1985; Copeland, 1986; Bryan and Buck, 1989). Time is valuable and not to be wasted on non-task activities. The mark of a professional is the ability to strictly adhere to timelines. On the other end of the continuum, in countries such as Indonesia or Saudi Arabia, time is flexible and stretches like rubber to cover all important or predestined tasks (Alghanim, 1976; Rand, 1976; Lee, 1980; Ghauri, 1986; Wasnak, 1986; Schuster, 1987; Fadiman, 1989; Harris and Moran, 1991; Moran and Stripp, 1991). Important people have many demands on their time and will attend to all important tasks as soon as possible.

Flow of Activities

On one end of the continuum are countries such as Germany or Canada that view time as linear, looking backward to the beginning of time and forward to the end of time (George, 1983; Miller, 1987; Harris and Moran, 1991; Snyder, 1993; Drabble, 1994). Activities are divided into discrete blocks of time with each activity relegated to specific time periods: meal time, bedtime, family time or study time. In other countries, such as Japan or Chile, time is seen as cyclical, with time devoted to each phase of life: birth, growth, death and rebirth or regeneration. As a result, time is not so limiting as in the more linear countries where time is treated more as a commodity (Davis, 1970; Wallin, 1976; Kazuo, 1979; Huneeus, 1984; Mendosa, 1988; Banthin, 1991; Harris and Moran, 1991). Accomplishing tasks means that sufficient time must be spent on all phases rather than rushing through phases to meet a deadline. Time may not be perceived as Journal of Public Affairs, November 2008 DOI: 10.1002/pa

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linear so activities can and do happen simultaneously.

View of Privacy

On one end of the continuum, in countries such as Germany, Netherlands and Japan, individuals keep their private life and business life totally separate (Ballon, 1977; Ramsey and Birk, 1983; March, 1985; Biggar, 1987). Time for family is spent with extended members of the family or close friends and does not impinge upon time set aside for work. On the other hand, family obligations are central to both social and business life in Brazil or Thailand (Davis, 1970; Wallin, 1976; Lee, 1980; Copeland, 1985; Copeland and Griggs, 1986; Alghanim, 1976; Mendosa, 1988; Harris and Moran, 1991). Business discussions are conducted within a family group or small network so need not be continued only at official meetings. A business network includes family members so there is little, if any, separation between private and public life. There is just all-inclusive life. These elements determine how and when business can be conducted—whether business activities are separate from family events or part of family events, whether business activities take place within discrete time periods, whether social activities include business discussions, whether time is flexible and the importance of deadlines.

Communication (Truth, Words, Style, Logic) Understanding the language of a particular cultural group is valuable for learning how members of that culture view the world. English presents a linear view of the world; whereas, Chinese presents a holistic view of the world. Learning the philosophical underpinning of a culture’s perception of truth is critical for determining how to rely on the meanings of words when negotiating a deal or crafting a contract. Western cultures are based upon the philosophy of Plato and Aristotle Copyright

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which holds that there are universal truths so ideas, activities and constructs are often viewed as good or bad, right or wrong or true or false. Eastern philosophies have hierarchies as a foundation of their worldview so the goal of interaction is to preserve harmony as opposed to working within a framework of absolutes. Many of the Eastern cultures recognize that there may be several variations of ‘the truth’ and view nothing as absolute. When using implicit languages (e.g. Chinese, Arabic, Japanese), words need to be interpreted in light of how they have been used to maintain harmony within the group in a particular situation. In those cultures oriented towards maintaining harmony, relationships are extremely important. Conversation tends to be indirect to avoid upsetting harmony. When using explicit languages (e.g. Swedish, Dutch, English), words are used in a concrete way, so that what is written in a contract is the behaviour that will be expected. In those cultures oriented towards universal truths, language is direct and specific so that all participants are clear about directions, expectations and deadlines. In western countries, logic is formal based on the philosophies of Aristotle and Plato. Evidence is critical and arguments must adhere to specific rules. In other cultures, forms of logic may be based upon a sense of honour, long-term relationships or intuition. As a result, creating persuasive arguments and using appropriate forms of evidence will vary. Objective data and charts or spreadsheets are not persuasive in all areas of the world. In some cultures, such as Taiwan, asking for a favourable decision based upon the length of a relationship may be more persuasive than objective data.

Truth

Countries with a dominant Judeo-Christian religious tradition, such as Israel, Italy or Canada tend to believe in a universal truth— things are either right or wrong, and some truths are always true (Ramsey and Birk, 1983; Garten, 1992; Hofstede, 1997; Trompenaars, Journal of Public Affairs, November 2008 DOI: 10.1002/pa

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1998). Countries with a different religious tradition, such as India or Japan, have a pragmatic view of truth, with every situation and each person’s perspective being different. Maintaining harmony is an important goal in these countries and truth tends to be relative rather than absolute (Fieg and Blair, 1975; Ballon, 1977; Ramsey and Birk, 1983; Joy, 1989; Mortenson, 1992; Hofstede, 1997; Trompenaars, 1998; Chatterjee et al., 2006). There may even be several competing truths in a given business situation. Cultures with a Judeo-Christian foundation want one version to be accepted as ‘true’ or ‘right’. Cultures with a pragmatic view are comfortable with several versions of the truth existing at the same time.

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et al., 1991). In these countries, it is often said that people should ‘say what they mean and mean what they say’. On the other end of the continuum, in countries such as Mexico, Indonesia and India, ‘saving face’, maintaining harmony or respecting the other person’s honour requires the use of an indirect form of communication in which there are many ways to convey information without stating something literally or directly—especially disagreeable information that might upset the harmony (Fieg and Blair, 1975; Hawrysh and Zaichkowsky, 1983; Hall, 1976; Zamet and Bovarnick, 1986; Biggar, 1987; Graham, 1987; Zhang and Kuroda, 1989). Understanding ideas conveyed may depend upon what is not said, as much as or more so, than what is said during a conversation.

Words

In countries in which English or a romance language is the native language words refer to specific objects, people or ideas (Hall, 1959; Ballon, 1977; Ghauri, 1986; Miller, 1987; Campbell et al., 1988). Precision requires the use of the specific words to convey thoughts accurately and efficiently. On the other end of the continuum, languages such as Japanese or Chinese use groups of symbols to convey thoughts, ideas and objects while maintaining face with participants (Zamet and Bovarnick, 1986; Brunner and You, 1988; Hofstede and Bond, 1988; Stone, 1989; Zhang and Kuroda, 1989). Individual symbols have significantly different meanings depending upon the combination of symbols, relationships between speakers or context of the situation.

Style

Countries such as Sweden or the United States value language that is direct, to the point and concise (Willett and Pennington, 1966; Olshavsky, 1973; Foy and Gadon, 1976; Hall, 1976; Fisher, 1980; Donohue, 1981; Graham and Herberger, 1983; Donohue et al., 1984; Soldow and Thomas, 1984; Schuster and Danes, 1986; Schuster, 1988; Alexander Copyright

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Logic

Forms of logic, on the one hand, are formal, syllogistic deductive arguments used in Western countries such as France or Great Britain in which it is critical to have sound premises, or inductive arguments such as those used in the United States, in which objective evidence and representative examples are critical (Davis and Silk, 1972; Fisher, 1980; George, 1983; Galante, 1984; McAlister et al., 1986; Perdue et al., 1986; Campbell et al., 1988; Laurent, 1991; Fisher et al., 1993; Snyder, 1993). On the other end of the continuum, alternative forms of heuristics are legitimate, such as circular logic or arguments based on honour or relationships (Alghanim, 1976; Radway, 1978; Catoline, 1982; Chatterjee et al., 2006; Kazuo, 1979; Fisher, 1980; Graham and Sano, 1984; Graham, 1985a,b; Copeland and Griggs, 1986; Ghauri, 1986; Mendosa, 1988; Harris and Moran, 1991; Moran and Stripp, 1991; Salacuse, 1991; Graham et al., 1992; Mortenson, 1992). Effective communication depends upon a thorough understanding of not only the language, but also the style, sense of truth and logic that is used by a particular cultural group. Assuming only one approach to communication and/or assuming that everyone Journal of Public Affairs, November 2008 DOI: 10.1002/pa

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speaking English as an acquired language is using an American/British approach to business decisions is a recipe for disaster. Understanding the form of communication used by a particular cultural group allows for appropriate adaptation. The purpose of the next section is to combine the two models presented in this section and create a framework that can be used to suggest how behaviour can be adapted by those doing business in other countries. The next section presents a matrix created by locating the countries or regions identified in the Classification of Cultures Model on each of the continua identified in this section.

Intersection of theories of culture and business practice Theories of culture in isolation or theories of general cultural constructs are useful for many activities and for understanding a given cultural group. However, learning how to use that information to adapt one’s behaviour when conducting business activities in other countries requires a different framework. Learning the specific cultures in each of 200þ countries and how the cultural values of each country affect business activity is an impossible task—especially for a person’s first overseas assignment or for someone who has to troubleshoot a problem and is being sent to a new country in 2 days. The model that follows incorporates cultural information relevant for business activity in an easily retrievable manner so decisions about adaptation can be made. The countries and regions in the Classification of Cultures Model (Schuster and Copeland, 2006) were used to form the vertical axis of the Global Business Practices Model (GBPM; Figure 3). When creating models some level of detail is generally lost in an effort to present a useable framework. While differences occur within and across countries and regions, these differences are less significant than the difference between groups. Areas of consensus across the work of Hall (1959, 1966, 1976, Copyright

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1983), Hofstede (1980, 1983, 1997), Schuster and Copeland (1996, 2006), Usunier (1996), Trompenaars (1998), Walker et al. (2003) and the research cited in the previous section, as well as empirical work conducted by the authors over 40þ years and validation from businesspeople in these cultural groups was used to place countries on either end or in a more central position on each continuum. This information forms the horizontal part of the matrix resulting in the GBPM (Figure 3). Two observations are immediately apparent from the matrix: (1) no two country groups are identical and (2) there are major differences between ‘western’ and ‘eastern’ business practices. This is a good visual representation of ‘psychological distance’ while providing substance as to the nature of that distance. The accepted business practices from any one country group will generate some level of success in the country groups located next to them in the matrix. The further distant the other country is on the matrix from one’s home country, the more dissimilar business practices will likely be. An advantage of using the matrix is that it immediately identifies major similarities and differences as a starting point for adaptation. Without having to learn everything there is to know about a country’s culture, the matrix encapsulates a considerable amount of information that can be used as a guide for adaptation. Once differences and similarities across concepts are identified, the person or team who will be representing the company can spend time preparing strategy, materials, arguments and style of communication that will be most effective when doing business in the identified country or region. This section will provide brief examples of a few forms of adaptation to consider. In those areas with a black square in the Role of Government column, expect to use time meeting government officials, forming relationships with government officials and seeking their approval or involvement with business transactions. When doing business in countries that have a grey square, taking time to understand the role of government is Journal of Public Affairs, November 2008 DOI: 10.1002/pa

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Figure 3. Global Business Practices Model. Role of Government: white, the government sets parameters and constraints to create the environment for doing business; black, direct involvement of government in business as a business partner. Rule of Law: white, reliance on systems and procedures; black, pragmatism or situational considerations. Sense of Hierarchy: white, assumption of equality; black, assumption of status difference. View of Privacy: white, business and private matters are separate; black, business and private matters are all part of one reality. Sense of Time: white, fixed time; black, flexible or ‘rubber’ time. Flow of Activities: white, time works in a linear fashion; black, time works in a cyclical fashion. Truth: white, universal truth; black, many truths exist at once. Words: white, words have explicit meanings; black, words have implicit meanings. Style: white, communication is direct and forthright; black, communication is indirect. Logic: white, formal deductive reasoning; black, alternative heuristic. From Schuster and Copeland. Global Business Practices, 1E. # 2006 South-Western, a part of Cengage Learning, Inc. Reproduced by permission. www.cengage.com/permissions

important. In some countries, the government may be in a transitional phase creating new regulations requiring permits or approvals, may have incentives for certain industries or may have high tariffs for some products. In some way the government participates in shaping the marketplace. In the countries with a white square the government is not normally involved in specific industries, with the exception of national defence. In those countries with a white square in the Rule of Law column, the legal system is highly developed and relied upon to create the parameters for doing business. The laws are expected to be followed because enforcement is routine. The legal system typically operates Copyright

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in an objective manner making decisions based upon the merits of a case when complaints are brought to the court. Therefore, creating a contract is a serious undertaking specifying who will do what within what time frame with what results. Obtaining a signed contract is an important goal of business. With a signed document, all parties understand what specific expectations will be fulfilled. That is what is expected of a transparent business system. The rest of the countries or regions have a grey or black square signifying that the legal system is not as well developed. Either the laws have not been created or are not enforced. In these regions, business activity cannot solely rely upon the terms of a contract being fulfilled or a Journal of Public Affairs, November 2008 DOI: 10.1002/pa

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complaint being upheld in court. Taking the time to understand the system and to create relationships with respected businesspeople is critical for success. Managing the terms of the contract by continued personal contact is essential for success. Legal issues regarding gifts and bribery need to be understood about the area in which business will be conducted and in the home country of the company doing business. In the countries with a white square for the Role of Hierarchy there is an expectation that businesspeople have authority to make decisions, that people at many levels in the organization are empowered to make decisions regardless of their title, and that ceremony or formality is not highly valued. When doing business in the areas that have a grey square, titles and status are more important. Skipping over people to talk with someone higher in the hierarchy is not looked upon kindly. Ceremony, formality and etiquette are highly valued. In those countries with a dark square, systems and processes are not well established so the hierarchy and norms of networks are very important. Taking time to identify the members of a network, to become accepted and introduced to others in the network, to understand the concepts of saving face and/or maintaining honour, the personal obligations of membership and the legality of adhering to obligations are concepts that need to be understood before doing business in these areas. All three of these concepts (government, law, hierarchy) create the structure within which companies conduct business. In those areas that have a white square for the View of Privacy, the expectation is that business will be conducted in an office, conference room or maybe during a meal with only the participants involved in the proposed business transaction. These activities are separate from family life or general social activities. In those countries with a grey square, meal times and social activities are more often part of business, but also include relationship dimensions. Friends or other business associates are often invited to Copyright

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participate. Demonstrating appreciation for art, cuisine, history, sports or architecture often helps to establish relationships. In those areas with a dark square, there is little separation between public life and private life. Business may take place anywhere at any time with different combinations of participants. An important part of doing business is getting to know one another as individuals so business is being conducted even when business is not the topic of discussion. As a result, waiting for a formal meeting to discuss business is not an effective practice and will result in lost time and opportunity. In those areas with a white square for Punctuality the expectation is that business meetings will start on time, that all members will be present and that business should be concluded within the timeframe of the meeting. Those countries with a grey square are generally more flexible about the start time of business meetings. Important people have many commitments and cannot be expected to be prompt at every meeting. Important issues that emerge have to be addressed, but each meeting will be given an appropriate amount of time when it begins. Punctuality in those areas with a dark square is much more flexible. Sometimes the infrastructure requires flexibility because of traffic jams; sometimes other more important business or relationship issues arise and have to take precedence. In many countries, the question about what time is being used for meetings is becoming common; participants want to know which time frame is being used for a specific meeting. In those areas with a white square for Flow of Activities, time is linear, specific and dedicated to specific activities. Decisionmaking, planning and collaboration occur in discrete time periods dedicated to specific tasks proceeding in a linear fashion by considering issues one at a time. In those areas with a grey square, time is more flexible with meetings starting later, stretching longer and including business as well as social activities. Rushing to keep things on schedule results in frustration. The areas with a dark square have a longer perspective on time often Journal of Public Affairs, November 2008 DOI: 10.1002/pa

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including cultures that are thousands of years old. Given this perspective, time often flows without a sense of haste. Schedules can change; social and business activities are both important. Since people are important, taking time to know people before making business decisions is critical for success. Decisions are not made on each issue in a sequential fashion. All the issues need to be discussed and considered first, so decisions can be made in a holistic manner. All three of these concepts (view of privacy, punctuality and flow of activities) determine when business is conducted with which people and at what pace. In those areas with a white square in the Truth column, universal truths are perceived to exist. These truths cover all people in all areas of the world with expectations that everyone should adhere to them and that there is only one truth. In those areas of the world with grey squares, adherence to an absolute truth is tempered with the need to protect network members, preserve one’s honour and demonstrate loyalty to family. As a result, truth can have several versions. In those areas of the world with dark squares there is no perception of a universal truth. Different truths can and do exist at the same time. It is often necessary to say what must be said to maintain harmony and save one’s face. As a result, agreement does not necessarily equate to commitment. Probing beyond the obvious meanings of words is important for success. In those areas of the world that have a black square in the Words column, the meanings of words are altered by the relationship between people, the topic and circumstances. Therefore, asking several questions in different ways, spending social or personal time with people and listening to how they say things or what is not said are all important. Identifying differences in what words mean, probing for consistency and learning to interpret levels of formality are critical for success. In countries with grey squares, nuanced or double meanings of words are often relevant during discussions. Developing a sophisticated vocabulary and paying attention to specific meanings during conversations is important. Tact, Copyright

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confrontation, respect and disrespect can be conveyed by the choice of words. In those countries with white squares, words have specific meanings. When making agreements the words used create specific expectations for future behaviour so choosing words carefully is important. In those countries with a white square in the Style column businesspeople tend to have direct conversations. Some areas may be more formal than others but identifying problems, issues, alternatives and solutions is pretty straightforward and direct. Yes/no questions are often asked. Yes responses indicate committed agreement with expectations of future behaviour. In those areas with a grey square, topics may be addressed in a direct manner but the style of conversation is more tactful and nuanced. Agreements and disagreements are equally polite and pleasant so paying attention to the words used is important. In those countries with a dark square the preferred style is indirect. Words have ambiguous meanings so a yes response does not indicate committed agreement; rather, it represents polite acknowledgement. Listening to what is not said or to what is implied is just as important to understanding a conversation as is listening to what words are used. Asking direct yes/no questions results in no useful information. Learning to ask indirect questions is important for success. In those countries with a white square for Logic, objective data (generally numerical) are important. Referring to data from credible sources is also effective. The form of argument is usually deductive in which conclusions follow from accepted premises. Careful consideration is necessary when agreeing to premises. In those areas with a grey square, acceptable forms of logic may be deductive, inductive, based upon friendship or appeal to one’s honour depending upon the people involved. Generally objective data are helpful when creating persuasive arguments but arguing from circumstance or precedent can also be effective. In those areas with dark squares deductive, circular or emotional arguments can be made based upon honour or Journal of Public Affairs, November 2008 DOI: 10.1002/pa

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precedent or religious principles. Preparing arguments that can be effective in different areas of the world is a useful tool. All four of these concepts (truth, words, style and logic) will have a part in determining the most effective communication in a country or region. This framework, while having to be modified based upon the individuals with whom you are doing business, provides a filter for interpreting the words and actions of the people with whom you are conducting business. The value of the GBPM is that it provides a framework for condensing a great deal of cultural information and demonstrating how cultural differences intersect with business practices. While the GBPM does not provide a prescriptive list of how to do business guidelines in any particular culture, the framework can be used to facilitate preparation, to guide a search for additional information and to interpret behaviour. The GBPM is an important heuristic to use when preparing to work effectively within other cultures. Instead of being left on one’s own ‘to adapt to the local culture’, the matrix provides guidance for working through decisions of how and when to adapt and what the nature of the adaptation should be to be successful.

Conclusions Many theories of culture exist and are useful for understanding the way people in a culture think, behave and live. However, these theories do not necessarily focus on how business is conducted in that culture or how one can prepare to do business effectively with people in that culture. The purpose of this paper is to create an intersection between the theories of culture and the practice of business. Using the Classification of Cultures Model identifies major cultural groups rather than having to process cultural information for 200þ countries. Elements of culture, such as structure (government, legal and personal), process (time and people) and communication (style, words, truth and logic), that are Copyright

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particularly relevant to conducting business, were used to create a set of continua. Combining those two perspectives resulted in the GBPM which is the intersection between theory and business practice. Knowing what elements of culture impact business activities in ways that are similar or different between one’s home country and the country in which business is being conducted is important for success. Knowing where to focus efforts in examining cultural differences and how they relate to business behaviour is a significant step forward in understanding how, where and when culture impacts business practice. The models portrayed in this paper provide a theoretical framework that can be used for future research. As countries change, as business practices evolve and as cultures evolve, testing these relationships at different time periods is important so that continued modifications in the GBPM can be made. Remember the caveat: each individual’s culture is determined by one’s country, family, ethnic group, educational system and company training. Therefore, no two individuals from any country will act in an identical fashion. The matrix presented here, however, creates a useful framework for beginning to adapt behaviour and providing members of the team with a repertoire of tools to be used. Deciding whether and when to use them is left up to the team members in a specific situation. Having more knowledge and tools increases the possibility of success when doing business with people from another cultural group.

Biographical notes Camille P. Schuster (Ph.D. from The Ohio State University) is currently a Full Professor of Marketing and Management at California State University San Marcos and President of Global Collaborations, Inc. Dr. Schuster has also taught at Virginia Polytechnic Institue and State University, Arizona State University, Xavier University, Thunderbird School of Management, and Indiana State University Northwest. Dr. Schuster has authored over 30 articles in professional and academic Journal of Public Affairs, November 2008 DOI: 10.1002/pa

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publications and has conducted seminars and worked with over 60 companies in more than 20 countries around the world. Michael J. Copeland is a retired human resources manager with Procter & Gamble. Beginning in 1978 he was a key manager in numerous technology transfers from the United States to Europe, the Middle East, and Asia. He was also involved in recruiting and training employees in the international are of P&G’s global business. He has authored a number of total quality, business writing, and international training articles. He has lived in Europe, Asia, and North America. Schuster and Copeland co-authored Global Business Practices: Adapting for Success (2006) and Global Business: Planning for Sales and Negotiations (1996).

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