Hall’s High- and Low-Context Cultures:

Renowned anthropologist Edward T. Hall made a distinction between cultures characterized as “low context” and “high context.”

Low-context cultures rely on elaborate verbal explanations, putting great emphasis on spoken words. Low-context countries tend to be in northern Europe and North America, which have a long tradition of rhetoric, placing central importance on the delivery of verbal messages. The primary function of speech in such cultures is to express one’s ideas and thoughts as clearly, logically, and convincingly as possible. Communication is direct and explicit, and meaning is straightforward. By contrast, high-context cultures such as Japan and China emphasize nonverbal messages and view communication as a means to promote smooth, harmonious relationships. They prefer an indirect and polite face-saving style that emphasizes a mutual sense of care and respect for others.

Hofstede’s Research on National Culture:

Dutch anthropologist Geert Hofstede conducted one of the early empirical studies of national cultural traits (in 1968n and 1972). He collected data on the values and attitudes of 116,000 employees at IBM Corporation, representing a diverse set of nationality, age, and gender. His investigation led Hofstede to delineate four independent dimensions of national culture, a fifth dimension was later introduced. Though the four dimensions of cultural orientation that Hofstede proposed have been widely accepted as a basis for cultural interpretation. The framework fails to account for the convergence of cultural values that has occurred during the last several decades and Hofstede did not capture all potential dimensions of culture among other limitations. In response to this last criticism, Hofstede eventually added a fifth dimension to his framework: long-term versus short-term orientation. The Hofstede framework should be viewed as only a general guide, useful for a deeper understanding in cross-national interactions with business partners, customers, and value-chain members.

1.      Individualism versus collectivism refers to whether a person functions primarily as an individual or within a group. In individualistic societies, ties among people are relatively loose, and each person tends to focus on his or her own self-interest. These societies prefer individualism over group conformity. Competition for resources is the norm, and those who compete best are rewarded financially (Australia, Canada, the United Kingdom, and the United States). In collectivist societies, by contrast, ties among individuals are more important than individualism. Business is conducted in the context of a group in which others’ views are strongly considered. The group is all-important, as life is fundamentally a cooperative experience. Conformity and compromise help maintain group harmony (China, Panama, and South Korea).

2.      Power distance describes how a society deals with the inequalities in power that exists among people.  Societies characterized by high power distance are relatively indifferent to inequalities and allow them to grow over time. There are substantial gaps between the powerful and the weak (Guatemala, Malaysia, the Philippines, and several Middle East). By contrast, in societies with low power distance, the gaps between the powerful and weak are minimal, their governments institute tax and social welfare systems that ensure their nationals are relatively equal in terms of income and power (Scandinavian countries, Japan, USA). In companies, the degree of centralization of authority and autocratic leadership determines power distance. In high power-distance firms, autocratic management styles focus power at the top and grant little autonomy to lower-level employees. In low power-distance firms, by contrast, managers and subordinates are more equal and cooperate more to achieve organizational goals.

3.      Uncertainty avoidance refers to the extent to which people can tolerate risk and uncertainty in their lives. People in societies with high uncertainty avoidance create institutions that minimize risk and ensure financial security. Companies emphasize stable careers and produce many rules to regulate worker actions and minimize ambiguity. Managers may be slow to make decisions before they investigate the nature and potential outcomes of several options (Belgium, France, and Japan). Societies that score low on uncertainty avoidance socialize their members to accept and become accustomed to uncertainty. Managers are entrepreneurial and relatively comfortable about taking risks, and make decisions relatively quickly. People accept each day as it comes and take their jobs in stride because they are less concerned about ensuring their future (India, Ireland, Jamaica, and the United States).

4.      Masculinity versus femininity refers to a society’s orientation, based on traditional male and female values. Masculine cultures tend to value competitiveness, assertiveness, ambition, and the accumulation of wealth. They are characterized by men and women who are assertive, focused on career and earning money, and may care little for others (Australia, Japan). In business, the masculinity dimension manifests as self-confidence, proactiveness, and leadership. Conversely, in feminine cultures, such as the Scandinavian countries, both men and women emphasize nurturing roles, interdependence among people, and caring for less fortunate people. Welfare systems are highly developed and education is subsidized (Scandinavia).

5.      Long-term versus short-term orientation denotes the degree to which people and organizations defer gratification to achieve long-term success. That is, firms and people in cultures with a long-term orientation tend to take the long view to planning and living. They focus on years and decades (China, Japan, and Singapore). These include discipline, loyalty, hard work, regard for education, esteem for the family, focus on group harmony, and control over one’s desires. By contrast, the United States and most other Western countries emphasize a short-term orientation (i.e. instant coffee, drive through take aways/restaurants).