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International Culture

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International Culture
RUGM_C05.QXD

8/18/08

4:16 PM

Page 129

Chapter 5

I NTERNATIONAL
CULTURE

Contents

Objectives of the chapter

Introduction 131

Places and people differ. The Japanese tend to be very polite, the Australians characteristically blunt. Red means “danger” or “stop” to the British, but in Turkey it signifies death and in
China, good fortune. In France getting into a grande école tends to guarantee good job prospects whereas in Saudi Arabia the wealth and status of your family is far more important.

What is culture? 131
The importance of culture in different business contexts 133
National stereotypes and key dimensions of culture 136
Cross-cultural management 144
Culture embodied in national institutions 151
■ Active Learning Case
Culture clash at Pharmacia and Upjohn 130
■ International Business Strategy in Action
McDonald’s 135
Danone and Parmalat—going international, staying local 149
■ Real Cases
Do not throw your meishi!

154

Sport can be local and global: Manchester
United 155

Patterns of global diversity and the implications of these differences have been studied from a range of perspectives, by sociologists, psychologists, anthropologists, and political scientists. Here we are concerned with how cultural diversity and related differences in the behavior, norms, and expectations of particular groups of employees, managers, colleagues, or customers affect management decision making and corporate organizations. After an introduction to the kinds of business contexts in which cultural differences do matter, this chapter will describe some typologies of national cultural differences and discuss the implications of these for international managers.
The specific objectives of this chapter are to:
1 Define culture and explain the factors that underlie cultural differences. 2 Show where and why cultural differences matter to international managers.
3 Explain a number of frameworks that help identify



Bibliography: Journal of World Business, vol. 37, no. 1 (2002). (2004). (2003). (London: Ashgate Press, 1996). Small and Medium-Sized Enterprises,” Management International Review, vol. 45, no. 4 (Fourth Quarter 2005). Business Studies, vol. 37, no. 6 (November 2006). Development, vol. 22, no. 10 (2003). the United States, Britain, Japan, Germany, France, Sweden and the Netherlands (New York: Doubleday, 1993). International Business Studies, vol. 37, no. 6 (November 2006). Holden, Nigel J. Cross-Cultural Management: A Knowledge Management Perspective (London: Prentice Hall, 2002). International Business Studies, vol. 37, no. 6 (November 2006). Kostova, Tatiana and Roth, Kendall. “Social Capital in Multinational Corporations & A Micro-Macro Model of its Formation,” Academy of Management Review, vol. 28, no. 2 (2003). Journal of International Business Studies, vol. 32, no. 2 (Summer 2001). 1 (Spring 2001). Maddox, Robert C. Cross-cultural Problems in International Business: The Role of the Cultural Integration Function (London: Quorum Books, 1993). Martin, Joanne. Cultures in Organizations: Three Perspectives (New York: Oxford University Press, 1992). Mead, Richard. International Management: Cross-cultural Dimensions, 2nd ed. (Oxford: Blackwell, 1998). Mole, John. Mind Your Manners: Managing Business Cultures in Europe (London: Nicholas Brealey, 1996). Press, 2001). vol. 29, no. 4 (2004). Management International Review, vol. 44, no. 3 (Third Quarter 2004).

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