Management Hofstedes Cultural Dimensions
by
William Newburry
  • LAST REVIEWED: 01 March 2023
  • LAST MODIFIED: 28 January 2013
  • DOI: 10.1093/obo/9780199846740-0069

Introduction

Geert Hofstede’s seminal 1980 book, Culture’s Consequences: International Differences in Work-Related Values, along with its 2001 reissue and expansion and related journal articles, is without question the most influential work on culture in the field of international management. The two versions of the book alone have been cited over 9,000 times in the Web of Science Database and over 33,000 times by Google Scholar. Related articles and books that reiterate and expand upon his original exposition of his four cultural dimensions have been cited thousands of times more. While his work is not without criticism, as will be noted later in this bibliography, it has nonetheless stood the test of time, and Google Scholar citation patterns suggest that Hofstede’s collective work has been cited as many times between 2007 and 2012 as it has since its original publication. Hofstede defined culture as “the collective programming of the mind that distinguishes members of one group from another” (Hofstede 2001, cited under National Culture; p. 1). Researchers have modeled national culture assuming that societies vary along specific cultural dimensions. While there are many cultural frameworks, some of which will be summarized in a subsequent section, Hofstede’s original four cultural dimensions—Power Distance, Individualism versus Collectivism, Masculinity versus Femininity, and Uncertainty Avoidance—remain among the most used. A fifth cultural dimension, Long-Term Orientation, was added later, based on subsequent research in China with Michael Harris Bond.

National Culture

Geert Hofstede has produced a prolific amount of work in the area of national culture. Listed below are a few of his major books and articles on the subject of national culture. Hofstede 1980a, the original edition of Culture’s Consequences, presents the results of Hofstede’s original study. Hofstede 2001, the book’s second edition, is a substantial revision and extension of his original work. Hofstede 1980b, in Organizational Dynamics, was the first journal article to present his cultural framework and, as such, is one of his most-cited articles. Hofstede 1983, an overview of his cultural research, was recognized with the Journal of International Business Studies Decade Award. Hofstede 1993 is notable for bringing the cultural limits of management theories to a broad audience, and Hofstede 1994 reiterates and extends the ideas within Hofstede 1993. Hofstede and Bond 1984 is noteworthy in its ability to replicate the original Hofstede national cultural dimensions within a student sample from nine Asian countries.

  • Hofstede, Geert. Culture’s Consequences: International Differences in Work-Related Values. Cross-Cultural Research and Methodology 5. Beverly Hills CA: SAGE, 1980a.

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    This is Hofstede’s original seminal work, which presents the results of his original study that develops his four-dimension framework for examining national culture: power distance, individualism versus collectivism, masculinity versus femininity, and uncertainty avoidance.

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  • Hofstede, Geert. “Motivation, Leadership, and Organization: Do American Theories Apply Abroad?” Organizational Dynamics 9.1 (1980b): 42–63.

    DOI: 10.1016/0090-2616(80)90013-3Save Citation »Export Citation » Share Citation »

    Published around the same time as his seminal book, this is the first journal article to present and describe Hofstede’s four original dimensions of national culture. Available online by subscription.

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  • Hofstede, Geert. “The Cultural Relativity of Organizational Practices and Theories.” Journal of International Business Studies 14.2 (Autumn 1983): 75–89.

    DOI: 10.1057/palgrave.jibs.8490867Save Citation »Export Citation » Share Citation »

    This article was the winner of the Journal of International Business Studies Decade Award, which recognizes the article, from each year, that has had the greatest influence in the following decade. Available online by subscription.

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  • Hofstede, Geert. “Cultural Constraints in Management Theories.” Academy of Management Executive 7.1 (February 1993): 81–94.

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    This article discusses how management theories are commonly written from a US (or Western) perspective, and how many such theories would differ if cultural differences between countries were considered. It also contains a good summary of Hofstede’s original four cultural dimensions in addition to the added dimension of long-term orientation. It is one of Hofstede’s most-cited articles and is available online by subscription.

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  • Hofstede, Geert. “Management Scientists Are Human.” Management Science 40.1 (January 1994): 4–13.

    DOI: 10.1287/mnsc.40.1.4Save Citation »Export Citation » Share Citation »

    This frequently cited article describes how the national culture of a country influences the management process within organizations operating in the national environment, ultimately influencing the management scientists who theorize about these organizations. Hofstede’s national cultural dimensions affect a society’s implicit models regarding what organizing means, as well as affecting scholars’ research questions and theories. Available online by subscription.

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  • Hofstede, Geert. Culture’s Consequences: Comparing Values, Behaviors, Institutions, and Organizations across Nations. 2d ed. Thousand Oaks, CA: SAGE, 2001.

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    This is the revised second edition of Hofstede’s original seminal work on national culture. It presents substantial new material reviewing studies using the original four cultural dimensions, while also adding the dimension of long-term orientation.

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  • Hofstede, Geert, and Michael H. Bond. “Hofstede’s Culture Dimensions: An Independent Validation Using Rokeach’s Value Survey.” Journal of Cross-Cultural Psychology 15.4 (December 1984): 417–433.

    DOI: 10.1177/0022002184015004003Save Citation »Export Citation » Share Citation »

    This article correlated data collected within a prior study (“Human Values in Nine Countries,” by S. H. Ng, A. B. M. Akhatar, P. Ball, et al., in Diversity and Unity in Cross-Cultural Psychology, edited by R. Rath, H. S. Asthara, D. Sinha, and J. B. H. Sinha [Lisse, The Netherlands: Swets and Zeitlinger, 1982], pp. 196–205), among students in nine Asian and Pacific countries, to Hofstede’s original data and found that each of Hofstede’s dimensions can be found with the five factors identified by Ng and colleagues’ data. Available online for purchase or by subscription.

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Power Distance

Power distance (PDI) refers to the extent to which a society accepts that power in institutions is distributed unequally among individuals (Hofstede 2001, cited under National Culture). Managers in high-PDI countries tend to be more autocratic and less willing to share their decision-making power with others, especially subordinates. While numerous studies use the construct of power distance as part of the overall Hofstede cultural framework, three highly cited studies focusing on power distance are indicated below as examples. First, Bochner and Hesketh 1994 validates the power distance and individualism dimensions, using a sample of bank employees across twenty-eight countries. Robert, et al. 2000 also uses the power distance and individualism dimensions together in a study across four countries. Lee, et al. 2000 examines power distance (along with gender) as moderators of perceived relationships of organizational justice.

  • Bochner, Stephen, and Beryl Hesketh. “Power Distance, Individualism/Collectivism, and Job-Related Attitudes in a Culturally Diverse Work Group.” Journal of Cross-Cultural Psychology 25.2 (June 1994): 233–257.

    DOI: 10.1177/0022022194252005Save Citation »Export Citation » Share Citation »

    This study validates Hofstede’s power distance (PD) and individualism (IDV) constructs in a multicultural work setting of 263 workers from 28 different countries employed by a large Australian bank. Based on survey results, subjects were divided into high and low PD and IDV groups. Comparing their scores to theoretically relevant items provided support for both constructs. Available online for purchase or by subscription.

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  • Lee, Cynthia, Madan Pillutla, and Kenneth S. Law. “Power-Distance, Gender and Organizational Justice.” Journal of Management 26.4 (August 2000): 685–704.

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    Based on a sample of Hong Kong employees, relationships between power distance, gender, justice perceptions, and the evaluation of authorities (trust in supervisor) and the organization (contract fulfillment). Power distance and gender were found to be significant moderators of several relationships of organizational justice. Available online for purchase or by subscription.

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  • Robert, Christopher, Tahira M. Probst, Joseph J. Martocchio, Fritz Drasgow, and John J. Lawler. “Empowerment and Continuous Improvement in the United States, Mexico, Poland, and India: Predicting Fit on the Basis of the Dimensions of Power Distance and Individualism.” Journal of Applied Psychology 85.5 (October 2000): 643–658.

    DOI: 10.1037/0021-9010.85.5.643Save Citation »Export Citation » Share Citation »

    Data from employees of a single firm with operations in the United States, Mexico, Poland, and India were used to test the fit of empowerment and continuous improvement practices with the cultural dimensions of individualism-collectivism and power distance. Results indicated that empowerment was negatively associated with satisfaction in India, but positively associated in the other three samples. Continuous improvement was positively associated with satisfaction in all samples. Available online for purchase or by subscription.

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Individualism versus Collectivism

In individualistic (IDV) nations, independence is highly valued and personal task accomplishment is put before group interest. By contrast, in collectivist cultures, qualities such as loyalty, solidarity, interdependence, conflict avoidance, and identification with the group are strongly emphasized (Hofstede 2001, cited under National Culture). Individualism is the most researched of Hofstede’s cultural dimensions, as indicated in Oyserman, et al. 2002, a meta-analysis of research in this area. Yeh and Lawrence 1995 examines problems with using Hofstede’s individualism and Confusian dynamism dimensions together. Bond, et al. 1985 examines the joint impact of collectivism and power distance. Important debates with regard to individualism-collectivism concern whether this is one or two constructs and whether these constructs can be divided into horizontal and vertical dimensions. Thus, Singelis, et al. 1995 is important for making theoretical and empirical distinctions between vertical and horizontal individualism and collectivism. Triandis and Gelfand 1998 expands on this distinction beyond the US context. Chen, et al. 1997 is a highly cited early article demonstrating the usefulness of examining vertical and horizontal collectivism in the context of China.

  • Bond, Michael H., Kwok-Choi Wan, Kwok Leung, and Robert A. Giacalone. “How Are Responses to Verbal Insult Related to Cultural Collectivism and Power Distance?” Journal of Cross-Cultural Psychology 16.1 (March 1985): 111–127.

    DOI: 10.1177/0022002185016001009Save Citation »Export Citation » Share Citation »

    This study compared Hong Kong Chinese respondents, who are high in collectivism and power distance, with US citizens, who are low in collectivism and moderately low in power distance. Insulter status and in-group membership were found to significantly influence the perceptions of Chinese respondents, but not those in the United States. Available online for purchase or by subscription.

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  • Chen, Chao C., James R. Meindl, and Raymond G. Hunt. “Testing the Effects of Vertical and Horizontal Collectivism: A Study of Reward Allocation Preferences in China.” Journal of Cross-Cultural Psychology 28.1 (January 1997): 44–70.

    DOI: 10.1177/0022022197281003Save Citation »Export Citation » Share Citation »

    This study uses the constructs of vertical and horizontal collectivism to examine attitudes toward reward system reform in China, finding differences between the attitudes of vertical and horizontal collectivists. Available online for purchase or by subscription.

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  • Oyserman, Daphna, Heather M. Coon, and Markus Kemmelmeier. “Rethinking Individualism and Collectivism: Evaluation of Theoretical Assumptions and Meta-analyses.” Psychological Bulletin 128.1 (January 2002): 3–72.

    DOI: 10.1037/0033-2909.128.1.3Save Citation »Export Citation » Share Citation »

    The authors conducted a meta-analysis of individualism-collectivism studies. Among other findings, their results suggest stability in Hofstede’s individualism scores over the past twenty years. They also noted that applying cultural indices makes three assumptions about the mean-level scores: (1) they are accurate across life domains, (2) they are stable over time, and (3) they are relevant to individual-level assessment. Available online for purchase or by subscription.

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  • Singelis, Theodore M., Harry C. Triandis, Dharm P. S. Bhawuk, and Michele J. Gelfand. “Horizontal and Vertical Dimensions of Individualism and Collectivism: A Theoretical and Measurement Refinement.” Cross-Cultural Research 29.3 (August 1995): 240–275.

    DOI: 10.1177/106939719502900302Save Citation »Export Citation » Share Citation »

    This seminal article is important for making theoretical and empirical distinctions between vertical and horizontal individualism and collectivism, thus contributing to the debate on whether individualism should consist of one or two dimensions. Available online for purchase or by subscription.

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  • Triandis, Harry C., and Michele J. Gelfand. “Converging Measurement of Horizontal and Vertical Individualism and Collectivism.” Journal of Personality and Social Psychology 74.1 (January 1998): 118–128.

    DOI: 10.1037/0022-3514.74.1.118Save Citation »Export Citation » Share Citation »

    This article empirically defines and then empirically measures both horizontal and vertical individualism and collectivism in four studies, building upon prior work in the US context. Available online for purchase or by subscription.

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  • Yeh, Ryh-song, and John J. Lawrence. “Individualism and Confucian Dynamism: A Note on Hofstede’s Cultural Root to Economic Growth.” Journal of International Business Studies 26.3 (1995): 655–669.

    DOI: 10.1057/palgrave.jibs.8490191Save Citation »Export Citation » Share Citation »

    This article describes two problems with research linking national culture and economic growth, usually conducted using Hofstede’s individualism and Confucian Dynamism dimensions. First, research treats these dimensions as independent when they appear highly interrelated, and second, culture is not a sufficient condition to explain economic growth. Available online by subscription.

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Masculinity versus Femininity

Masculine (MAS) cultural values tend toward aggressiveness, assertiveness, and self-achievement. Feminine values foster care, sympathy, and intuition (Hofstede 2001, cited under National Culture). In terms of work relationships, feminine societies are more associated with consensus seeking and cooperation; emphasis on solidarity, equality, and quality of work life; better working conditions; and employment security. Hofstede 1998 is devoted to the discussion of this dimension, while Hofstede 2000 covers similar content.

  • Hofstede, Geert. Masculinity and Femininity: The Taboo Dimension of National Cultures. Cross Cultural Psychology 3. Thousand Oaks, CA: SAGE, 1998.

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    This book focuses in depth on the dimension of masculinity and femininity and its importance in examining differences between cultures. It particularly focuses on applying this cultural dimension to understand differences in gender, sexuality, and religion.

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  • Hofstede, Geert. “Whatever Happened to Masculinity and Femininity?” Cross-Cultural Psychology Bulletin 34.4 (2000): 14–21.

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    This article covers much of the same territory as Hofstede 1998, in less detailed journal form.

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Uncertainty Avoidance

Uncertainty avoidance (UAI) indicates the extent to which a society feels threatened by ambiguous situations and tries to avoid them by providing particular rules, regulations, and religions (Hofstede 2001, as cited under National Culture). Strong-UAI countries typically exhibit higher stress, need for consensus, hard work, and conflict avoidance. Weak-UAI nations, by contrast, exhibit greater willingness to take risks, fewer rules, and acceptance of dissent. A few highly cited studies focusing on this cultural dimension are indicated as examples below. Venaik and Brewer 2010 finds significant differences between the Hofstede and the Global Leadership and Organizational Behavior and Effectiveness (GLOBE) models regarding uncertainty avoidance. Shane 1995 examines the relationship of uncertainty avoidance with various innovation-championing roles. Lim, et al. 2004 examines the effects of individualism/collectivism and uncertainty avoidance on Internet shopping. Barr and Glynn 2004 examines how uncertainty avoidance relates to the interpretation of strategic issues.

  • Barr, Pamela S., and Mary Ann Glynn. “Cultural Variations in Strategic Issue Interpretation: Relating Cultural Uncertainty Avoidance to Controllability in Discriminating Threat and Opportunity.” Strategic Management Journal 25.1 (January 2004): 59–67.

    DOI: 10.1002/smj.361Save Citation »Export Citation » Share Citation »

    This study finds that uncertainty avoidance significantly relates to the strategic issue labels of threats and opportunities, based on a survey of 276 American and international respondents. Findings suggest that individuals from high-UA cultures were more sensitive to controllability in terms of their perceptions of strategic issues. Available online for purchase or by subscription.

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  • Lim, Kai H., Kwok Leung, Choon Ling Sia, and Matthew K. O. Lee. “Is eCommerce Boundary-less? Effects of Individualism–Collectivism and Uncertainty Avoidance on Internet Shopping.” Journal of International Business Studies 35.6 (2004): 545–559.

    DOI: 10.1057/palgrave.jibs.8400104Save Citation »Export Citation » Share Citation »

    This study found that individualism-collectivism and uncertainty avoidance, and their interaction, explained 14 percent of the variance in Internet shopping rates across a wide variety of countries. Available online for purchase or by subscription.

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  • Shane, Scott. “Uncertainty Avoidance and the Preference for Innovation Championing Roles.” Journal of International Business Studies 26.1 (1995): 47–68.

    DOI: 10.1057/palgrave.jibs.8490165Save Citation »Export Citation » Share Citation »

    The study shows that uncertainty acceptance is significantly associated with four innovation-championing roles (organizational maverick, network facilitator, transformational leader, and organizational buffer), based on a study of 4,405 individuals in 43 organizations from 68 countries. Available online by subscription.

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  • Venaik, Sunil, and Paul Brewer. “Avoiding Uncertainty in Hofstede and GLOBE.” Journal of International Business Studies 41.8 (2010): 1294–1315.

    DOI: 10.1057/jibs.2009.96Save Citation »Export Citation » Share Citation »

    This paper compares the UA construct across the Hofstede and GLOBE culture models, finding significant differences between the two studies that result in contradictory research explanations across study variables at multiple analysis levels. The authors find that the two cultural models measure different components of the UA construct, and propose and confirm the validity of a two-component UA model consisting of UA-stress orientation and UA-rule orientation. Available online for purchase or by subscription.

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Long-Term Orientation

Long-term orientation (LTO) aims to identify a society’s time orientation (Hofstede and Bond 1988). Opposing rationales exist regarding this dimension’s impact on activity standardization preferences. On the one hand, societies with high LTO are future oriented, with a longer-term perspective, and they value persistence, respect for status, and thrift (Hofstede and Bond 1988). Countries exhibiting low LTO are tradition oriented, with a shorter-term perspective (toward the present and past), and they value personal steadiness, face saving, and reciprocation of favors (Robertson 2000). Hofstede and Bond 1988 is the original paper that added the LTO dimension to Hofstede’s original dimensions, based on further research in China. Ganesan 1994 is an example of a highly cited paper that uses LTO to examine buyer-seller relationships. Robertson 2000 demonstrates that LTO (Confusian Dynamism) exists at the individual level in three countries. Fang 2003 argues that the concept of LTO is flawed, both in theory and due to the methods by which it was developed. Hofstede and Minkov 2010 calculates a new LTO version, using data from the World Values Survey (WVS), while Minkov and Hofstede 2012 factor analyzes WVS LTO-related items and finds two factors: one correlated with the original LTO and another with individualism.

  • Fang, Tony. “A Critique of Hofstede’s Fifth National Culture Dimension.” International Journal of Cross Cultural Management 3.3 (December 2003): 347–368.

    DOI: 10.1177/1470595803003003006Save Citation »Export Citation » Share Citation »

    This article argues that Hofstede’s Confucian Dynamism / LTO cultural dimension is flawed in the basic premise upon which it was developed, as well as in other methodological shortcomings. Available online for purchase or by subscription.

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  • Ganesan, Shankar. “Determinants of Long-Term Orientation in Buyer-Seller Relationships.” Journal of Marketing 58.2 (April 1994): 1–19.

    DOI: 10.2307/1252265Save Citation »Export Citation » Share Citation »

    Results based on an examination of 124 retail buyers and 52 vendors supplying to those retailers suggest that trust and dependence influence the long-term orientation of retail buyers and their vendors. Available online by subscription.

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  • Hofstede, Geert, and Michael H. Bond. “The Confucius Connection: From Cultural Roots to Economic Growth.” Organizational Dynamics 16.4 (1988): 5–21.

    DOI: 10.1016/0090-2616(88)90009-5Save Citation »Export Citation » Share Citation »

    The article introduced a fifth cultural dimension to Hofstede’s original four dimensions, based on his work with Michael Harris Bond in China. This added dimension is labeled Confucian Dynamism within this study, although it is more commonly referred to as long-term orientation. Available online.

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  • Hofstede, Geert, and Michael Minkov. “Long- versus Short-Term Orientation: New Perspectives.” Asia Pacific Business Review 16.4 (2010): 493–504.

    DOI: 10.1080/13602381003637609Save Citation »Export Citation » Share Citation »

    This study calculates a new version of the LTO dimension, using data from the World Values Survey across ninety-three countries. These scores are correlated with family values, school results, business values, environmental values, and economic growth. Available online for purchase or by subscription.

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  • Minkov, Michael, and Geert Hofstede. “Hofstede’s Fifth Dimension: New Evidence from the World Values Survey.” Journal of Cross-Cultural Psychology 43.1 (January 2012): 3–14.

    DOI: 10.1177/0022022110388567Save Citation »Export Citation » Share Citation »

    The authors attempt to replicate the LTO dimension by factor analyzing ten WVS items related to the LTO concept across thirty-eight countries. Results suggest two factors: one correlated with the original LTO, and another relating to Hofstede’s individualism dimension. Similar to the original LTO, the first factor predicted national economic growth and national mathematics success. Available online for purchase or by subscription.

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  • Robertson, Christopher J. “The Global Dispersion of Chinese Values: A Three-Country Study of Confucian Dynamism.” Management International Review 40.3 (2000): 253–268.

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    One hundred eighty-nine managers from Chile, Australia, and the United States were surveyed regarding their perceptions of Confucian Dynamism (and Hofstede and Bond’s other cultural values). Findings suggest that Confucian Dynamism exists at the individual level in the three nations. Available online by subscription.

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Organizational Culture

While Hofstede is most widely known for his work on national culture, he has also done significant work in the area of organizational culture. The three versions of his seminal Cultures and Organizations: Software of the Mind (Hofstede 1997; Hofstede and Hofstede 2005; Hofstede, et al. 2010) bridge the national and organizational cultural realms by presenting his research in both these areas, while also discussing the issue of cultural levels. Hofstede, et al. 1990 is his seminal work on organizational culture, which develops a six-dimensional model of organizational culture based on a study of organizations in the Netherlands and Denmark. Hofstede 1998a and Hofstede 1998b extend his earlier organizational culture work, using data from a large Danish insurance company to help disentangle the concepts of attitudes, values, and organizational culture and also to examine organizational subcultures. Hofstede and McCrae 2004 links the five-factor model of personality traits with the Hofstede cultural dimensions.

  • Hofstede, Geert. Cultures and Organizations: Software of the Mind. New York: McGraw-Hill, 1997.

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    The first version of this seminal book, which contains the following sections. The introductory section of the book discusses issues related to the concept of culture. The second part of the book presents results based on national cultures, while the third part of the book presents results based on organizational culture. The fourth part addresses cultural implications in a variety of settings.

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  • Hofstede, Geert. “Attitudes, Values and Organizational Culture: Disentangling the Concepts.” Organization Studies 19.3 (1998a): 477–493.

    DOI: 10.1177/017084069801900305Save Citation »Export Citation » Share Citation »

    This article presents results from a study of attitudes, values, and perceptions of organizational practices, based on an employee survey in a large Danish insurance company. Among the study results, attitudes and values were found to be distinct, while perceptions of organizational practices were not related to values and were related to attitudes only in the area of communication. Available online for purchase or by subscription.

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  • Hofstede, Geert. “Identifying Organizational Subcultures: An Empirical Approach.” Journal of Management Studies 35.1 (1998b): 1–12.

    DOI: 10.1111/1467-6486.00081Save Citation »Export Citation » Share Citation »

    The study examines the organizational culture of a large Danish insurance company as a whole, along with 131 work groups. Based upon a hierarchical cluster analysis, three distinct subcultures were identified in this organizational culture: a professional subculture, an administrative subculture, and a customer interface subculture. Available online for purchase or by subscription.

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  • Hofstede, Geert, and Gert Jan Hofstede. Cultures and Organizations: Software of the Mind. 2d ed. New York: McGraw-Hill, 2005.

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    This is the second version of this seminal work, which updates and extends Hofstede’s original work with additional contributions by Gert Jan Hofstede.

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  • Hofstede, Geert, Gert Jan Hofstede, and Michael Minkov. Cultures and Organizations: Software of the Mind; International Cooperation and Its Importance for Survival. 3d ed. New York: McGraw-Hill, 2010.

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    This third version of this seminal book again updates and extends the prior version, this time with analyses provided by new coauthor Minkov, based on World Values Survey data.

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  • Hofstede, Geert, and Robert R. McCrae. “Personality and Culture Revisited: Linking Traits and Dimensions of Culture.” Cross-Cultural Research 38.1 (February 2004): 52–88.

    DOI: 10.1177/1069397103259443Save Citation »Export Citation » Share Citation »

    This article compares the five-factor model of personality traits with the Hofstede cultural dimensions, finding that mean personality scores from thirty-three countries were significantly correlated with Hofstede’s cultural-dimension scores. Available online for purchase or by subscription.

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  • Hofstede, Geert, Bram Neuijen, Denise Daval Ohayv, and Geert Sanders. “Measuring Organizational Cultures: A Qualitative and Quantitative Study across Twenty Cases.” Administrative Science Quarterly 35.2 (June 1990): 286–316.

    DOI: 10.2307/2393392Save Citation »Export Citation » Share Citation »

    This seminal article presents results of a study on organizational cultures in twenty units from ten different organizations in Denmark and the Netherlands. The article presents a six-dimensional model of organizational cultures, derived from the study. Available online by subscription.

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Cultural Distance

One of the most common applications of Hofstede’s cultural dimensions in research on international management is in the usage of cultural distance indexes to measure the degree to which the national cultures of countries vary. Kogut and Singh 1988 is the seminal piece in this research area. Shenkar 2001 presents a critical review of the measurement of cultural distance in international-management studies. Morosini, et al. 1998 provides a highly cited example of the many articles that use cultural distance to examine performance of various types of foreign direct investments (in this case, acquisitions). Brouthers and Brouthers 2001 attempts to reconcile inconsistent past findings regarding the relationship between cultural distance and the entry mode choice either of joint ventures or acquisitions. Tihanyi, et al. 2005 helps summarize much of the past literature on cultural distance with respect to international investment, in the authors’ meta-analysis of the relationships of cultural distance with entry mode choice, international diversification, and the performance of multinational enterprises (MNEs). Drogendijk and Slangen 2006 examines the impact of five measures of cultural distance, based on the work of Hofstede and S. H. Schwartz and on managerial perceptions on the choice of expansion through greenfield or acquisition. Magnusson, et al. 2008 examines the convergent validity of multiple culture frameworks used to examine distance.

  • Brouthers, Keith D., and Lance E. Brouthers. “Explaining the National Cultural Distance Paradox.” Journal of International Business Studies 32.1 (March 2001): 177–189.

    DOI: 10.1057/palgrave.jibs.8490944Save Citation »Export Citation » Share Citation »

    This study attempts to reconcile past studies that find conflicting results regarding the relationship between national cultural distance and the entry mode choice of joint ventures versus wholly owned subsidiaries. The study provides theoretical and empirical evidence to explain discrepant past findings and to help resolve what the article labels the national cultural distance paradox. Available online for purchase or by subscription.

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  • Drogendijk, Rian, and Arjen Slangen. “Hofstede, Schwartz, or Managerial Perceptions? The Effects of Different Cultural Distance Measures on Establishment Mode Choices by Multinational Enterprises.” International Business Review 15.4 (August 2006): 361–380.

    DOI: 10.1016/j.ibusrev.2006.05.003Save Citation »Export Citation » Share Citation »

    This article compares the effects of five measures of cultural distance on the MNEs’ choice between expanding abroad through greenfield or acquisition. Based on a sample of foreign expansions by Dutch MNEs, results suggest that scoring high on all five cultural distance measures significantly increased the likelihood of choosing greenfields, and that the Hofstede and Schwartz–based measures had comparable explanatory power and more predictive power than a measure based on managerial perceptions. Available online by subscription or purchase.

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  • Kogut, Bruce, and Harbir Singh. “The Effect of National Culture on the Choice of Entry Mode.” Journal of International Business Studies 19.3 (Autumn 1988): 411–432.

    DOI: 10.1057/palgrave.jibs.8490394Save Citation »Export Citation » Share Citation »

    This seminal piece is noted for developing what is now known as the “Kogut and Singh index,” which has been used in countless studies in the literature on international management to measure the distance between cultures—originally and most frequently applied based on differences in Hofstede’s original cultural dimension scores. This paper was the winner of the 1998 Journal of International Business Studies Decade Award. Available online by subscription.

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  • Magnusson, Peter, Rick T. Wilson, Srdan Zdravkovic, Joyce Xin Zhou, and Stanford A. Westjohn. “Breaking Through the Cultural Clutter: A Comparative Assessment of Multiple Cultural and Institutional Frameworks.” International Marketing Review 25.2 (2008): 183–201.

    DOI: 10.1108/02651330810866272Save Citation »Export Citation » Share Citation »

    This article attempts to compare the multiple cultural and institutional frameworks used to operationalize distance, including the frameworks by Hofstede, Schwartz, Trompenaars, and the Global Leadership and Organizational Behavior and Effectiveness (GLOBE) research project. Convergent validity between the constructs is examined. Available online for purchase or by subscription.

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  • Morosini, Piero, Scott Shane, and Harbir Singh. “National Cultural Distance and Cross-Border Acquisition Performance.” Journal of International Business Studies 29.1 (1998): 137–158.

    DOI: 10.1057/palgrave.jibs.8490029Save Citation »Export Citation » Share Citation »

    This article tests the hypothesis that national cultural distance enhances cross-border acquisition performance, contrary to prior theory. Based on a sample of fifty-two cross-border acquisitions, it finds a positive relationship between national cultural distance and cross-border acquisition performance. Available online by subscription.

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  • Shenkar, Oded. “Cultural Distance Revisited: Towards a More Rigorous Conceptualization and Measurement of Cultural Differences.” Journal of International Business Studies 32.3 (2001): 519–535.

    DOI: 10.1057/palgrave.jibs.8490982Save Citation »Export Citation » Share Citation »

    This important piece reviewed many of the past conceptionalizations of cultural distance and noted many problems and issues with the application of indexes such as Kogut and Singh’s that are based on Hofstede’s cultural dimensions. It won the 2011 Journal of International Business Studies Decade Award. Available online by subscription.

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  • Tihanyi, Laszlo, David A. Griffith, and Craig J. Russell. “The Effect of Cultural Distance on Entry Mode Choice, International Diversification, and MNE Performance: A Meta-analysis.” Journal of International Business Studies 36.3 (May 2005): 270–283.

    DOI: 10.1057/palgrave.jibs.8400136Save Citation »Export Citation » Share Citation »

    This study conducts a meta-analysis of the relationships of cultural distance with entry mode choice, international diversification, and MNE performance, using data from 66 independent samples, with cumulative sample sizes ranging from 2,255 to 24,152. Overall regression results did not find statistically significant relationships among these variables. However, a number of strong moderation effects were identified. Available online for purchase or by subscription.

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Reviews

Given the vast usage of Hofstede’s national cultural dimensions in academic studies, several studies have reviewed the research in this area. Four studies highlighted below directly examine Hofstede’s work, while two (Taras, et al. 2009; Ronen and Shenkar 1985) provide broader reviews of the literature on national culture. One important recent review that is directly focused on Hofstede’s work is Kirkman, et al. 2006, which examines the findings of 180 studies, along with limitations of this framework. Taras, et al. 2010 conducts an extensive meta-analysis using data from 598 studies to examine relationships between Hofstede’s original four cultural value dimensions and numerous organizational outcomes. Taras, et al. 2012 provides an additional meta-analysis of Hofstede’s cultural dimensions, with a focus on improving national cultural indices. Søndergaard 1994 provides a review of the different ways in which Hofstede’s framework has been used in subsequent research. Taras, et al. 2009 provides a broader review of the measurement of culture over the past fifty years, including Hofstede’s framework. Ronen and Shenkar 1985 analyzes eight prior cultural frameworks, including Hofstede’s, to develop cultural clusters.

  • Kirkman, Bradley L., Kevin B. Lowe, and Cristina B. Gibson. “A Quarter Century of Culture’s Consequences: A Review of Empirical Research Incorporating Hofstede’s Cultural Values Framework.” Journal of International Business Studies 37.3 (May 2006): 285–320.

    DOI: 10.1057/palgrave.jibs.8400202Save Citation »Export Citation » Share Citation »

    This paper reviews 180 studies using Hofstede’s cultural framework that were published between 1980 and June 2002. The paper aggregates what is empirically known about the Hofstede framework, and it also discusses limitations within research based on the framework. Available online for purchase or by subscription.

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  • Ronen, Simcha, and Oded Shenkar. “Clustering Countries on Attitudinal Dimensions: A Review and Synthesis.” Academy of Management Review 10.3 (July 1985): 435–454.

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    This highly cited article reviews eight previous studies that have been used to cluster countries, including Hofstede’s, and integrates the findings to develop a synthesis of country clusters. Available online by subscription.

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  • Søndergaard, Mikael. “Research Note: Hofstede’s Consequences: A Study of Reviews, Citations and Replications.” Organization Studies 15.3 (May 1994): 447–456.

    DOI: 10.1177/017084069401500307Save Citation »Export Citation » Share Citation »

    The study provides a review and analysis of applications of Geert Hofstede’s work, finding four types of usage: nominal citations, reviews, empirical replications, and usage of his framework as a paradigm. Available online for purchase or by subscription.

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  • Taras, Vas, Bradley L. Kirkman, and Piers Steel. “Examining the Impact of Culture’s Consequences: A Three-Decade, Multilevel, Meta-analytic Review of Hofstede’s Cultural Value Dimensions.” Journal of Applied Psychology 95.3 (May 2010): 405–439.

    DOI: 10.1037/a0018938Save Citation »Export Citation » Share Citation »

    This extensive meta-analysis uses data from 598 studies to examine relationships between Hofstede’s original four cultural value dimensions and several outcomes related to organizations, such as job performance, absenteeism, turnover, organizational commitment, identification, citizenship behavior, team-related attitudes, and feedback seeking. Available online for purchase or by subscription.

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  • Taras, Vas, Julie Rowney, and Piers Steel. “Half a Century of Measuring Culture: Review of Approaches, Challenges, and Limitations Based on the Analysis of 121 Instruments for Quantifying Culture.” Journal of International Management 15.4 (December 2009): 357–373.

    DOI: 10.1016/j.intman.2008.08.005Save Citation »Export Citation » Share Citation »

    This study provides an overview of how culture has been operationalized and studied, focusing on culture definition, dimensionality of culture models, data collection and analysis, levels of culture measurement, cross-cultural survey equivalence and reliability, and validity of culture measures. Available online for purchase or by subscription.

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  • Taras, Vas, Piers Steel, and Bradley L. Kirkman. “Improving National Cultural Indices Using a Longitudinal Meta-analysis of Hofstede’s Dimensions.” Journal of World Business 47.3 (2012): 329–341.

    DOI: 10.1016/j.jwb.2011.05.001Save Citation »Export Citation » Share Citation »

    This article provides an additional analysis of Hofstede’s cultural dimensions, this time with the focus on improving national cultural indices. Available online for purchase or by subscription.

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Hofstede versus GLOBE

While Hofstede’s cultural framework is certainly the most cited framework in the literature on international management at this time, there are numerous other cultural frameworks that are used and compared to Hofstede’s work. The most notable of these in recent years is the Global Leadership and Organizational Behavior and Effectiveness (GLOBE) study, in House, et al. 2004. In addition to the recent work, a number of important dialogues have occurred between proponents of Hofstede’s and House and colleagues’ frameworks. These prominently include a series of articles and commentaries in the Journal of International Business Studies in 2006 among Hofstede, the collective GLOBE authors, Peter Smith, Christopher Earley, and Kwok Leung. A later review of GLOBE, Hofstede 2010, is also included.

  • Earley, P. Christopher. “Leading Cultural Research in the Future: A Matter of Paradigms and Taste.” Journal of International Business Studies 37.6 (2006): 922–931.

    DOI: 10.1057/palgrave.jibs.8400236Save Citation »Export Citation » Share Citation »

    This commentary notes that the works of Hofstede and the GLOBE represent only one approach to cross-cultural research. The author presents alternative approaches to developing cultural theories and suggests these may be more useful in future theory development. Available online for purchase or by subscription.

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  • Hofstede, Geert. “What Did GLOBE Really Measure? Researchers’ Minds versus Respondents’ Minds.” Journal of International Business Studies 37.6 (2006): 882–896.

    DOI: 10.1057/palgrave.jibs.8400233Save Citation »Export Citation » Share Citation »

    This article presents Hofstede’s view on problems with the development of the GLOBE study dimensions, which he contends altered concepts from the original Hofstede model. He focuses on five meta-factors created through reanalysis of the GLOBE summary data in House, et al. 2004 and finds these correlate highly with the original Hofstede cultural framework. He further suggests that the GLOBE respondents classified questions in a way that closely resembles the original Hofstede model. Available online for purchase or by subscription.

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  • Hofstede, Geert. “The GLOBE Debate: Back to Relevance.” Journal of International Business Studies 41.8 (2010): 1339–1346.

    DOI: 10.1057/jibs.2010.31Save Citation »Export Citation » Share Citation »

    This article presents a critical summary review of the debate about GLOBE (versus Hofstede, either implicitly or explicitly) since 2006. Available online for purchase or by subscription.

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  • House, Robert J., Paul J. Hanges, Mansour Javidan, Peter W. Dorfman, and Vipin Gupta, eds. Culture, Leadership, and Organizations: The GLOBE Study of 62 Societies. Thousand Oaks, CA: SAGE, 2004.

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    The seminal book presents the results of the GLOBE cultural study, which develops a cultural framework based on nine dimensions: performance orientation, uncertainty avoidance, humane orientation, institutional collectivism, in-group collectivism, assertiveness, gender egalitarianism, future orientation, and power distance. Each dimension is measured in terms of practice (as is) and values (as should be).

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  • Javidan, Mansour, Robert J. House, Peter W. Dorfman, Paul J. Hanges, and Mary Sully de Luque. “Conceptualizing and Measuring Cultures and Their Consequences: A Comparative Review of GLOBE’s and Hofstede’s Approaches.” Journal of International Business Studies 37.6 (2006): 897–914.

    DOI: 10.1057/palgrave.jibs.8400234Save Citation »Export Citation » Share Citation »

    This paper presents the GLOBE researchers’ response to Hofstede’s criticism regarding the GLOBE cultural values and practices. They question his criticisms both in theoretical and empirical terms and suggest flaws in his reanalysis of the data. They suggest that Hofstede’s claims reflect his lack of understanding of “psychometric methodologies designed to ensure scale reliability and construct validity.” Available online for purchase or by subscription.

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  • Leung, Kwok. “Editor’s Introduction to the Exchange between Hofstede and GLOBE.” Journal of International Business Studies 37.6 (2006): 881.

    DOI: 10.1057/palgrave.jibs.8400232Save Citation »Export Citation » Share Citation »

    This is the guest editor’s introduction to a special issue of the Journal of International Business Studies, dedicated to comparing Hofstede and GLOBE. Available online for purchase or by subscription.

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  • Smith, Peter B. “When Elephants Fight, the Grass Gets Trampled: The GLOBE and Hofstede Projects.” Journal of International Business Studies 37.6 (2006): 915–921.

    DOI: 10.1057/palgrave.jibs.8400235Save Citation »Export Citation » Share Citation »

    This commentary highlights four aspects of the debate between Hofstede and the GLOBE authors in the same Journal of International Business Studies issue, related to (1) differences between aggregated self-perceptions and aggregated perceptions of others, (2) the ratio of national culture dimensions studied to nations available for comparative analyses, (3) optimal ways of aggregating individual-level data to the nation level, and (4) the need for clarity regarding how national wealth relates to culture. Available online for purchase or by subscription.

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Complementary and Competing Cultural Frameworks

Aside from the GLOBE frameworks, seminal articles from other cultural frameworks often related to Hofstede include Kluckhohn and Strodtbeck 1973, Hall 1989, Trompenaars 1994, and Triandis 1994.

  • Hall, Edward T. Beyond Culture. New York: Anchor, 1989.

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    Originally published in 1976. Hall’s framework examines cultures based on whether they are high and low context. High-context cultures (e.g., Japan) emphasize harmony with nature, acceptance of fate, orientation to the past and present, relationships, indirectness, and cooperation. Low-context cultures (e.g., Germany), by contrast, emphasize mastery over nature, personal control, change, future orientation, time scarcity, communication directness, and competition.

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  • Kluckhohn, Florence R., and Fred L. Strodtbeck. Variations in Value Orientations. Westport, CT: Greenwood, 1973.

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    Kluckhohn and Strodtbeck classified cultures in terms of value orientation, based upon the nature of people, a person’s relation to nature, a person’s relation to others, time orientation, doing versus being, and space orientation. Originally published in 1961 (Evanston, IL: Row, Peterson).

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  • Schwartz, Shalom H. “Universals in the Content and Structure of Values: Theoretical Advances and Empirical Tests in 20 Countries.” In Advances in Experimental Social Psychology. Vol. 25. Edited by Mark P. Zanna, 1–65. New York: Academic Press, 1992.

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    Within this book chapter, Schwartz develops his set of ten motivationally distinct value types, which are tested based on a study of twenty countries.

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  • Schwartz, Shalom H. “Beyond Individualism/Collectivism: New Cultural Dimensions of Values.” In Individualism and Collectivism: Theory, Method, and Applications. Edited by Uichol Kim, Harry C. Triandis, Çiğdem Kâğitçibaşi, Sang-Chin Choi, and Gene Yoon, 85–119. Cross-Cultural Research and Methodology 18. Thousand Oaks, CA: SAGE, 1994.

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    This article develops a new set of cultural dimensions based on a study of value priorities in eighty-seven samples from forty-one cultural groups in thirty-eight nations, which are then compared with Hofstede’s four dimensions.

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  • Triandis, Harry C. Culture and Social Behavior. McGraw-Hill Series in Social Psychology. New York: McGraw-Hill, 1994.

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    Triandis argues that cultures differ in the kind of information they receive from the environment. His culture types include simple versus complex, tight versus loose, and individualist versus collectivist.

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  • Trompenaars, Fons. Riding the Waves of Culture: Understanding Cultural Diversity in Business. London: Nicholas Brealey, 1994.

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    Trompenaars identified universal problems that lead to corresponding cultural dimensions: universalism versus particularism, individualism versus communitarianism, specific versus diffuse, affective versus neutral, achievement versus ascription, sequential versus synchronic, and internal versus external control. The second edition (1997, published most recently in 2011) brings in Charles Hampden-Turner as a coauthor.

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Ecological Fallacy

One of the most common criticisms of the application of Hofstede’s cultural dimensions in international business research is the ecological fallacy, which refers to “applying aggregate-level reasoning at the individual level” (Hofstede 2001, cited under National Culture; p. 16). While Hofstede himself addresses this issue in the 2001 version of Culture’s Consequences, two highly cited articles in relation to the issue are Robinson 1950 and Schwartz 1994. The first discusses issues with applying upper-level correlations to the individual level, while the second discusses potential misuses of the ecological-fallacy concept. Taras and Steel 2009 examines reasons why the ecological fallacy has discouraged cross-level research regarding culture, and how this can be overcome. Newburry and Yakova 2006 is an example of a study using national culture to predict individual perceptions; this study avoids the ecological fallacy in its theoretical development.

  • Newburry, William, and Nevena Yakova. “Standardization Preferences: A Function of National Culture, Work Interdependence and Local Embeddedness.” Journal of International Business Studies 37.1 (January 2006): 44–60.

    DOI: 10.1057/palgrave.jibs.8400179Save Citation »Export Citation » Share Citation »

    This article provides an examination of how national cultural dimensions can be used to predict individual-level perceptions regarding standardization preferences in their companies. The article discusses the ecological fallacy and how it is important to make theoretical arguments regarding national cultural-level impacts on individual preferences, as opposed to the ecological error of ascribing cultural dimensions directly to individuals. Available online for purchase or by subscription.

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  • Robinson, W. S. “Ecological Correlations and the Behavior of Individuals.” American Sociological Review 15.3 (June 1950): 351–357.

    DOI: 10.2307/2087176Save Citation »Export Citation » Share Citation »

    This seminal paper discusses difficulties in using aggregated “ecological correlations” to approximate individual behavior. Available online for purchase or by subscription.

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  • Schwartz, S. “The Fallacy of the Ecological Fallacy: The Potential Misuse of a Concept and the Consequences.” American Journal of Public Health 84.5 (May 1994): 819–824.

    DOI: 10.2105/AJPH.84.5.819Save Citation »Export Citation » Share Citation »

    This highly cited paper identifies ways in which the conceptual meaning of the ecological fallacy is problematic, based on the argument that problems with cross-level inference can be conceptualized as validity problems that are not unique to ecological-level analyses.

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  • Taras, Vasyl, and Piers Steel. “Beyond Hofstede: Challenging the Ten Commandments of Cross-Cultural Research.” In Beyond Hofstede: Culture Frameworks for Global Marketing and Management. Edited by Cheryl Nakata, 40–60. Basingstoke, UK, and New York: Palgrave Macmillan, 2009.

    DOI: 10.1057/9780230240834Save Citation »Export Citation » Share Citation »

    This article notes the difficulties in cross-level analysis of culture and the ecological fallacy, and how this has led to the unwritten rule in national cultural studies that you should not mix national and individual levels of analysis. While recognizing the importance of the ecological-fallacy warning, the article then demonstrates conditions when cross-level theorizing may be appropriate, showing how statistical techniques have advanced that allow great prospects for multilevel cultural research (e.g., hierarchical linear modeling).

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