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Archives of Business Research – Vol. 10, No. 6

Publication Date: June 25, 2022

DOI:10.14738/abr.106.12525. Ayala, R. O., Pérez, H. F. V., & Escott-Mota, M. D. P. (2022). The Cultural Dimensions of Hofstede in the Chinese Company Zhe Jiang

Deman. Archives of Business Research, 10(6). 182-192.

Services for Science and Education – United Kingdom

The Cultural Dimensions of Hofstede in the Chinese Company Zhe

Jiang Deman

Ricardo Ortiz Ayala

Universidad Autónoma de Querétaro. México

Héctor Fernando Valencia Pérez

Universidad Autónoma de Querétaro. México

María del Pilar Escott-Mota

Universidad Autónoma de Querétaro. México

ABSTRACT

The corporate culture in a company is essential to achieve organizational

objectives. The objective of this research is to describe the cultural profiles of those

who works as employees in a Chinese manufacturing company, taking Hofstede's

cultural dimensions as a reference framework. Geert Hofstede describes

organizational culture in a general way, using the following cultural dimensions:

power distance, individualism-collectivism, masculinity-femininity, uncertainty

avoidance, short- and long-term orientation, and indulgence-restraint. This article

is a case study that uses frequency graphs and Cronbach's Alpha validation test,

which allows us to contribute to a simple but scientifically orthodox and correct

methodology to describe the organizational culture in any institution or company

of any nationality. The results will allow companies or organizations to make

strategic decisions.

Keywords: organizational culture, Hofstede model, case study.

INTRODUCTION

General culture and organizational culture are fundamental characteristics of each company

and society. Even today the most popular and most commonly used model for operationalizing

culture is that of the Dutch social psychologist Geert Hofstede. The model differs in the

following 6 cultural dimensions: distance to power, individualism-collectivism, masculinity- femininity, avoidance of uncertainty, long-term-short-term orientation towards indulgence- restriction.

The following paper uses Hofstede's model of cultural dimensions within a collective case study

approach. A Likert scale questionnaire was applied to the employees of two different

companies located in Mexico. Two manufacturing companies are compared, one Chinese and

one Mexican. The Mexican company preferred that its identity not be disclosed. For this reason,

we will refer to them as a Chinese company and a Mexican company. The cultural profiles of the

companies are analyzed and compared, using Hofstede's model of cultural dimensions.

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Ayala, R. O., Pérez, H. F. V., & Escott-Mota, M. D. P. (2022). The Cultural Dimensions of Hofstede in the Chinese Company Zhe Jiang Deman. Archives

of Business Research, 10(6). 182-192.

URL: http://dx.doi.org/10.14738/abr.106.12525

This document is organized as follows: A literature review of the Hofstede model is presented

including definitions, in each dimension of analysis the question that showed the main results

is chosen, including its analysis and interpretation. Finally, a general conclusion of the study is

presented.

LITERATURE REVIEW

Culture is the sum total of beliefs, rules, techniques, institutions, and artifacts that characterize

populations, which could be interpreted as the collective programming of the mind. (Hofstede,

1980). This implies that people share a certain type of universal and collective values and the

most individual part depends on aspects such as religion, or family influence. For UNESCO in

the Universal Declaration on Cultural Diversity, culture is considered a source of exchange such

as innovation and creativity. It is also considered a World Heritage Site (UNESCO 2001). In

general, each country has cultural aspects where some are similar to other nations and others

are very particular. In the era of globalization where the importance of traditional barriers such

as the reduction of time and space, business internationalization is a natural consequence of

the economic system. Today it is common for companies to have employees of many

nationalities, a heterogeneous group of people with different values, behavior and cultural

roots. Depending on the circumstances that the company is experiencing, culture emerges and

constitutes a dynamic system of intangible concepts such as intercultural relationships,

perceptions, verbal and non-verbal codes. All these concepts make up a self-sustained behavior

pattern that determines how things are done (Katzenbach, 2016).

This research constitutes a collective case study applied in a Chinese manufacturing company.

A descriptive cross-sectional design was applied. Non-probabilistic convenience sample of 79

workers in both companies. The questionnaire to be applied will be provided in Chinese for the

workers of the Chinese company and in Spanish for the Mexican company. The questionnaire

is based on the Likert scale and consists of a total of 60 questions (10 questions for each

Hofstede dimension) about culture in general and business culture. The information was

processed by applying Cronbach's Alpha reliability test with the SPSS program, obtaining a

result of 0.732. The questionnaires were applied to operational personnel.

The study is approached from the theory of cultural dimensions (Hofstede, 1997) that considers

that distance to power, individualism or collectivism, masculinity or femininity, aversion to

uncertainty, short or long-term orientation and indulgence or containment are dimensions of

analysis that allow describing the cultural trends of an organization in any country.

For Hofstede, cultural dimensions help to evaluate a specific culture and, in this way, better

guide decisions. There are other factors that must be taken into account, such as personality,

family history or personal wealth. The dimensions provide us with a systematic framework to

assess the differences between nations and cultures” (World Speaking, 2011). Therefore, this

theory is based on the idea that a certain value can be assigned to (currently) six cultural

dimensions. The theory shows us how culture influences people's values and how they are

made known in human behavior. This theory has been used in various fields such as cross- cultural psychology, intercultural management, and intercultural communication. However,

initially there were four cultural dimensions, these four are what Hofstede used in his book

Culture’s Consequences, and they became Hofstede's four dimensions of national culture. Later,

in 1991, a fifth dimension was added based on the research of Canadian psychologist Michael

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Archives of Business Research (ABR) Vol. 10, Issue 6, June-2022

Services for Science and Education – United Kingdom

Harris Bond. Finally, in the 2010 edition of the book Cultures and Organizations, Bulgarian

expert Michael Minkow's research determined the sixth and final dimension. In the end, the six

dimensions resulting from various investigations are the following:

The distance to power refers to the extent to which less powerful members of organizations

and institutions (such as the family) accept and expect power to be unequally distributed. This

dimension does not measure the level of distribution of power in a given culture, but rather

analyzes how people feel about it. A low power distance score means that that culture expects

and accepts that power relations are democratic and that its members are viewed as equals. A

high score on this index means less powerful members of society accept their place and are

aware of the existence of formal hierarchical positions (Farías, N. 2007).

For Hofstede Individualism versus collectivism: "the degree to which people are integrated into

groups." This dimension has no political connotations; it refers to the group rather than the

individual. Cultures that are individualistic place importance on the achievement of personal

goals. In collectivist societies, the goals of the group and its well-being are valued above those

of the individual.

Masculinity versus femininity: “distribution of emotional roles between genders”. This

dimension measures the level of importance that a culture places on stereotypically masculine

values, such as assertiveness, ambition, power, and materialism, and on stereotypically

feminine values, such as an emphasis on human relationships. Cultures with a high value on the

masculinity scale tend to have more marked differences between genders and tend to be more

competitive and ambitious. Those that obtain a low score in this dimension present fewer

differences between genders and attach great importance to the development of relationships.

Avoidance of uncertainty: “tolerance of a society of uncertainty and ambiguity”. It is a

dimension that measures the way in which a society deals with unfamiliar situations,

unexpected events and the stress of change. Cultures that score high on this index are less

tolerant of change and tend to minimize anxiety about the unknown by implementing rigid

rules, regulations, or laws. Societies that score low on this index are more open to change and

have fewer rules and regulations, as well as more flexible guidelines.

Long-term versus short-term orientation: This dimension describes the time horizon of a

society. Cultures with a short-term orientation value traditional method, spend a considerable

amount of time developing relationships, and generally view time as a circular dimension. This

means that the past and the present are interconnected, and that what cannot be done today

can be done tomorrow. The opposite of this is the long-term orientation, which considers time

a linear dimension and looks to the future rather than the present or the past. It is goal oriented

and values rewards.

Indulgence versus restraint: This dimension measures the ability of a culture to satisfy the

immediate needs and personal desires of its members. Those who value containment have

strict social norms that regulate and discourage the satisfaction of impulses.

Hofstede's original study dates from 1967 to 1973 where he applied thousands of

questionnaires to IBM workforce taking into account the company's various international

subsidiaries. Like this, within his first study Hofstede (1980) culturally characterizes the 40

largest countries in the world, a number that has expanded to 76 countries today.

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Ayala, R. O., Pérez, H. F. V., & Escott-Mota, M. D. P. (2022). The Cultural Dimensions of Hofstede in the Chinese Company Zhe Jiang Deman. Archives

of Business Research, 10(6). 182-192.

URL: http://dx.doi.org/10.14738/abr.106.12525

Abdullah et all (2011) consider the following arguments against the Hofstede model: Relevancy,

Cultural Homogeneity, National Divisions, Out-dated, One Company Approach, Too Few

Dimensions because culture is too complex to be put into just few dimensions.

As a consequence of the critique of the model of the cultural dimensions of Hofstede, various

other cultural models evolved. Trompenaars & Hampden (1997) mentioned the following 7

cultural dimensions: Universalism vs. Particularism; Individualism vs. Communitarianism;

Specific vs. Diffuse; Neutral vs. Emotional; Achievement vs. Ascription; Sequential time vs.

synchronous time; Internal direction vs. outer direction.

Considering the multidimensional critiques on the Hofstede ́s model it remains as a valid model

through the years. Hofstede can be considered as a pioneer in cultural studies (Søndergaard,

1994). Nowadays has great acceptance in several research fields.

METHODOLOGY

Using Geert Hofstede's model, this study formulates the following research question: What

characteristics define the cultural profile.

Target

Finding the cultural profile in the Chinese company Zhe Jiang Deman Machine Co., Ltd, based

on Geert Hofstede's model of cultural dimensions. Zhejiang Demai Machinery Co., Ltd. is an

experienced manufacturer of flat glass cold processing machinery and equipment.

Method

Descriptive non-probabilistic convenience sample of 79 workers in the Chinese manufacturing

industry. The Cronbach's Alpha validation test. All the information was processed in the

statistical package, SPSS v.20.

Hofstede insists that cultural dimensions are nothing more than a framework to help assess a

particular culture and thus better guide decisions. There are other factors that must be taken

into account, such as personality, family history or personal wealth. The dimensions provide us

with a systematic framework to evaluate the differences between nations and cultures. In this

study, a Likert scale was considered, with the following possible answers:

a) Strongly disagree

b) Partially disagree

c) Partially agree

d) Strongly agree

The scores considered were: a): 1, b): 2, c): 3, d): 4. The questionnaire, made up of 60 questions,

is based on the Theory of Cultural Dimensions, and serves to collect the necessary information

for the investigation with respect to the Chinese company. The statistical package SPSS, V.20

was used. The study is qualitative ordinal type, the responses are Likert type. In the first

instance, we proceed to work with the validation of the statistical instrument (questionnaire),

by obtaining the Cronbach's Alpha coefficient. If it is greater than 0.8, the instrument is

validated and the analysis of the database is applied to reach reliable conclusions. There is the

possibility of accepting a statistical instrument as validated when Cronbach's Alpha coefficient