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53
CHAPTER 4
VALIDATION OF HOFSTEDE’S CULTURAL DIMENSIONS:
A QUALITATIVE ANALYSIS
This chapter describes the exploratory and validation phase which helped
in arriving at the basic framework of culture that could be meaningful and
relevant to the Indian regional context and that can possibly influence the
performance of micro, small and medium entrepreneurs in India. The
previous chapter made an extensive review of the relationship between
entrepreneurial behaviours and the respective region’s cultural
environment. It also analyzed some of the major theories that define
cultural dimensions of a region or country from where the six cultural
dimensions of Hofstede have been considered as the most appropriate for
the Indian context. A qualitative survey, based on semi-structured
questionnaire, of forty experts was undertaken to validate the relevance
and adequacy of Hofstede’s framework for India and also to bring out a
cultural dimensional framework relevant to the micro, small and medium
entrepreneurs in India.
4.1 Etic and Emic approaches to cross-culture research
Hofstede’s framework has been considered as the baseline and an attempt is made to
understand how relevant they are in the Indian regional context. The framework as
derived by Hofstede had used an “Etic” (global and scientific) approach. As these
dimensions are used in India it was felt necessary to take an insider view: an “Emic”
(insider or bottom up) approach could be used to assess whether these factors were
sufficient to define the various cultural outlooks across the various regions of the
country.
In this context it was necessary to understand the significance of etic and emic
approaches to cross-culture research. An emic approach looks at the insider
perspectives of the “native members of the culture whose beliefs and behaviours were
being studied” (Lett, 1990, p. 130). This approach gives importance to the local
54
viewpoints. An etic approach, on the other hand, is often termed as outsider or
deductive or global and its comparisons across countries and contexts and facilitates
debate on cross-cultural concepts (Morris et al, 1999). The etic vs. emic dichotomy in
research has often been attributed respectively to the distinction between global or
universal vs. the native culture specific approach; the distinction is also due to
quantitative vs. qualitative approach (Buckley et al, 2014). As Morris et al (1999)
contemplated, the divide between emic and etic could be explained with respect to
field work done by Rohlen (1974) as compared to the cross country culture studies
done by Hofstede (1980).
In the emic approach to this study, views were sought from Indian experts to
understand the fitment of Hofstede’s cultural dimensions in the Indian context and
also to examine if there were other important dimensions that could influence the
performance of micro, small and medium entrepreneurs which ought to be looked
into.
4.2 Hofstede’s findings of Indian cultural traits
The Indian country level cultural dimensions as viewed though the six dimensional
framework of Hofstede is given in Fig. 4.2.1.
Fig. 4.2.1: Hofstede’s Cultural Dimensions – India
Source: http://geert-hofstede.com/india.html
55
The scores provided by Hofstede (Fig.4.2.1) was a comparative index and the high,
intermediate and low rating was as per his comparison with those of various other
countries of the world.
Power Distance (high vs. low): India has a high score of 77 indicating that the people
have a relatively high level of adherence to power hierarchies and where employees
expect to be directed by their bosses.
Collectivism vs. Individualism: The score is an intermediate value of 48 which
indicates that both collectivism and individualism exist in almost equal measures.
Masculinity vs. Femininity: The score in this case is high at 56 which indicates that
the Indian society is majorly driven by achievements, success and competitive spirit
which are perceived to be masculine attributes.
Uncertainty Avoidance (high vs. low): India scores a medium to low score of 40 in
this case. Indians have the medium to low preference for uncertainty avoidance.
Long Term (Pragmatic) vs. Short Term (Normative) Orientation: The score is a
relatively high score of 51 which shows a reference for a long term and pragmatic
culture.
Indulgence vs. Restraint: India has a low score of 26 for this dimension which
indicates a low preference for Indulgence and that it is a predominantly ‘Restraint’
culture.
4.3 Interactions with experts: A Qualitative Approach
A study was undertaken to validate the six cultural dimensions for India and also to
see whether there were any additional dimensions beyond what Hofstede had
envisaged for India. Semi-structured questionnaires were administered to a panel of
forty experts from different regions and professions. The panel of experts consisted of
micro, small and medium entrepreneurs, professionals from private industrial sector,
professionals from academics, legal, arts & culture, banking and non-banking
financial sectors and Indian bureaucracy and public services undertakings.
56
Table 4.3.1 provides the descriptive statistics of the panel of experts considered for
the structured interview and Table 4.3.2 provides the details of the structured
questions put forth. Care was taken to include experts from every section of the
society. Effort was also taken to include people hailing from various regions of the
country.
Table 4.3.1: Descriptive statistics of panel of experts
Expertise Profile Count
Age Range
Min Max
Micro, small and medium Entrepreneurs 3 45 55
Professionals from Private Industrial Sector 10 42 65
Professionals from Academics, Legal, Arts & Culture 15 42 70
Professionals from Banking and Non Banking Financial
Sector
7 57 68
Professionals from Indian Bureaucracy and Public
Services Undertaking 5 52 70
The questions (Table 4.3.2) put forth to the forty experts had one common thread: to
identify the behaviour of each of the six dimensions of Hofstede in the Indian context.
Along with the questionnaire a brief description of these cultural dimensions as
promulgated by Hofstede was provided to each of these experts. A succinct paper by
Hofstede (2010) was also provided for better understanding of these dimensions.
The expected responses included those on the expert’s impression about the
applicability of Hofstede’s postulates on culture: are they valid for Indian micro,
small and medium entrepreneurs, and if so how much. Secondly they were expected
to give their views on any additional dimensions which Hofstede had not
conceptualized in his framework but could be important in the study of Indian culture
as applicability to micro, small and medium entrepreneurs.
The responses received were qualitatively analysed to validate the relevance and
adequacy of Hofstede’s cultural framework for the Indian context. An analytical
cultural framework was then arrived at for further studies on the cultural determinants
on the entrepreneurial efficiency in the case of Indian MSMEs.
57
Table 4.3.2: Interview Questions put across to the Experts
Questions
1 Do less powerful members of the Indian society accept unequal distribution of
power
2 1. According to you what type of societal orientation (collectivism or
individualism) is practiced in the various Indian regions?
2. Do you think collectivism brings about social network and social
reciprocity?
3 Are the people in various part of India strongly uncomfortable to uncertainties?
4 Are masculinity and femininity traits relevant in the cultural composition of
people in the various regions of India? If so, which is the more dominant trait?
5 What type of orientation do the people of various regions of India subscribe to?
Are they pragmatic (long term oriented)? Or are they normative (short term
oriented)?
6 Are people from different regions of India Indulgent or Restraint?
7 Do any other cultural values or characteristics which do not figure in the above
framework, but according to you assume importance in the Indian, regional
context?
If so, what are those characteristics?
4.4 Findings and Analysis
The experts had distinct views on the applicability of Hofstede’s dimensions. Table
4.4.1 summarises the experts’ evaluation of Hofstede’s dimensions. Hofstede’s latest
evaluation of Indian culture provides a high score of 77 (Fig. 4.2.1) indicating that the
Indian society has a higher level of acceptance of power hierarchies. The experts also
opine that Indians have a relatively high level of acceptance of power hierarchies
except that this level of acceptance varies across regions based on gender, literacy
levels, social and ethnic orientations. People of certain regions especially in South and
North East India tend to go beyond the power inequalities and aspire for
interdependence and collaborative working style as against hierarchical power
structures.
The experts opined that both Collectivism and Individualism were practiced in the
country – collectivism was practiced more by the business communities. This was
more in agreement with Hofstede’s intermediate score of 48 (Fig 4.2.1) which
indicated the presence of both individualism and collectivism. The experts also
observed that while collectivism in many cases could lead to social networking and
58
reciprocity there were instances when collectivism triggered by political and
communal reasons turns sectarian which need not necessarily lead to social welfare.
These types of collectivism could often unsettle and disrupt the social and group
objectives as well as efforts taken to achieve social objectives. Similarly, certain
cases of individualistic practices could also be unsettling or disruptive. This was one
major input which went beyond Hofstede’s findings in the Indian context.
Uncertainty avoidance as a cultural attribute received a low score of 40 in Hofstede’s
evaluation (Fig. 4.2.1). This score was in line with the experts’ view that Indians were
generally tolerant to uncertainties. Majority of the Indians were economically and
socially backward and did not have the choice or capability to take measures to avoid
uncertainty. They were forced to face uncertainties and could foresee or control very
little. People in the villages are more tolerant to uncertainties while those in the urban
areas are relatively less tolerant to uncertainties. The experts also opined that low
levels of uncertainty avoidance were seen among the business communities which
amount to their higher risk-taking propensity.
Hofstede’s score for Masculinity was a moderate 56 (Fig. 4.2.1). This means that
while there was a simple majority of people who prioritize on competition,
achievement and success, there were enough people in the country who were caring
and who uphold the quality of life. The experts observed that in many parts of the
country the same person was found to have elements of both Masculinity and
Femininity, especially when the person was from the lower echelons of society. They
also stated that the two traits were spread across the country with certain regions
accounting for a predominance of masculine behaviour while the other parts show
higher levels of feminine behaviour.
The experts observed that Indian culture was a mix of pragmatic and normative
behaviours and that the reasons were historic and linked to a person’s religious and
personal beliefs, traditions and her/his social and ethnic identity. The level of
adherence changes based on factors like literacy, nature of social groups, adherence to
religious beliefs, traditions etc. Hofstede’s high score of 51 for long term or pragmatic
orientation (Fig. 4.2.1) on the other hand indicated that the Indian culture was long
term and pragmatically oriented.
59
Table 4.4.1:
Summary of Experts’ evaluation of Hofstede’s dimensions for India
Hofstede’s
Dimension Synthesis of Experts’ views 1 Power
Distance
(Acceptance of
the unequal
distribution of
power by the
less powerful
members of
the society)
1) Relatively higher levels of acceptance of power
hierarchies, but the extent varied from region to region,
based on gender, level of literacy, social and ethnic groups
2) Acceptance of hierarchical power structures might help
entrepreneurial efficiency in certain regions.
3) There was a growing trend where the younger generation
of India did not prefer to go by power hierarchies and
believed in collaborative interactions both in social life
and at work which according to them increased
entrepreneurial efficiency 2 Collectivism
vs.
Individualism
1) Both existed and could lead to social networking
2) Collectivism borne out of sectarian reasons could be
disruptive and unsettling
3) Individualism practiced for sectarian reasons could also be
disruptive
4) Non disruptive collectivism could lead to positive
performance which was the landmark quality of trading
(Vaish) communities and certain ethnic and social groups
in India 3 Uncertainty
Avoidance
1) Lower levels of uncertainty avoidance – intensity varied
from region to region
2) Trading and business communities had low levels of
Uncertainty Avoidance (higher Risk-taking Propensity)
3) Majority of the Indians were economically and socially
backward and were forced to face uncertainties
4) Rural population was more tolerant to uncertainties while
people from urban areas had high Uncertainty Avoidance. 4 Masculinity vs.
Femininity
1) Both groups were present across various regions
2) Masculinity could be more dominant
5 Long term
(pragmatic)
orientation vs.
short term (or
normative)
orientation
Both present; level of occurrence based on literacy levels,
ethnicity, traditions and customs etc.
6 Indulgence vs.
Restraint
Mix of both indulgent and restrained social groups with the
level of acceptance varying across regions.
Social and economic backwardness restrains people from
being indulgent
Younger generation was found to be more indulgent
60
According to Hofstede, the score available for Indulgence was only 26 (Fig. 4.2.1). It
indicated that majority of Indians exhibit ‘Restraint’. The experts also opined that
India had both indulgent and restrained social groups and this attribute varied across
regions. Many of them felt that it was also age based as the younger generation tend
to be more Indulgent. Again, economic and social backwardness were reasons for a
society to be restrained as they cannot afford to be indulgent even if they choose to do
so.
One important contribution by the experts was the proposal of an additional cultural
dimension beyond those promulgated by Hofstede, namely, ‘Ethnic Orientation’. The
ethnicity of an individual, according to them, created a distinct cultural identity as he
belongs to a certain community, race, minority social groups etc.
4.5 Discussion
The experts’ assessment of the validity of Hofstede’s cultural dimensions as
applicable to the Indian context converged fully on two aspects: Power Distance
(Acceptance of the unequal distribution of power by the less powerful members of the
society), and Masculinity (vs. Femininity). Both agreed that majority of the Indians
acknowledged and abided by power hierarchies. Both masculinity and femininity
existed in the Indian society with masculinity being the relatively dominant attribute.
However these convergences were without prejudice to the experts’ view that the
level of adherence varied significantly across various regions of the country and were
also dependent on factors like literacy levels, religious influences, and traditions.
The experts’ had divergent views on the remaining four dimensions of Hofstede.
According to them, Indian society had a mix of both long term (pragmatic) and short
term (normative) orientations. Hofstede’s assessment indicated that Indians were
predominantly pragmatic and long term. On collectivism and individualism they
asked the question as to what type of collectivism. They were of the opinion that both
collectivism and individualism existed in India in different formats. There was
collectivism which united people together for socially beneficial processes. A good
example of this type of collectivism was that practiced by the business communities
of India. There was individualism which led to positive leadership which many times
complements positive collectivism. On the other hand there were instances of people
61
being constrained to join groups which were ordained by triggers borne out of
religious, caste social or political reasons. The experts’ inputs helped to bring out
several manifestations of both collectivism and individualism (Fig.4.5.1).
Majority of the Indians, being economically backward, did not have the means to
protect themselves under various measures to avoid uncertainties. They were
constrained to face all the unexpected vagaries of nature and unpalatable economic
consequences. But it was also true that continuing exposure to uncertainties over and
again helped the Indian people build up an intrinsic immunity to unforeseen
calamities and hardships. This was different from the innate business risk appetite
(borne out of low levels of uncertainty avoidance) which many entrepreneurs in India
were endowed with and a large part of these came from the business communities
who were known for higher standards of entrepreneurship.
The fourth divergence was on Indulgent vs. Restraint orientations. Although the
Indian society was found to be characterised by restraint as proposed by Hofstede’s
studies, it was again not a dimension borne out of choice, at all times, stated the
experts. The high levels of economic and social backwardness of the vast majority of
people prevent them from being indulgent. Their life was more of a struggle against
different types of inequalities and they tended to be restrained as a matter of chance.
62
Table 4.5.1:
Comparison of Hofstede’s Dimensions and the Experts’ views on Indian culture
Cultural
Dimension
Hofstede Vs. Indian Experts
Convergence Divergence
Acceptance of
unequal distribution
of power by the less
powerful members
of the society
Relatively
higher level of
acceptance
Level of acceptance varied across the country
Lower level of acceptance by the younger
generation
Collectivism vs.
Individualism
Both co-exist in
India
Level of adherence not the same across
various regions of India and it varied across
regions and communities.
Existence of both disruptive and disruptive
collectivism as well as disruptive and non
disruptive individualism
Uncertainty
Avoidance
Lower level of
uncertainty
avoidance
Level of Uncertainty Avoidance varied
across regions.
For majority of Indians uncertainties were
facts of life due to social and economic
backwardness; they didn’t have a choice or
capability to avoid it.
Thus people in rural areas had lower levels
of Uncertainty Avoidance whereas those in
urban areas had a higher level of Uncertainty
Avoidance
From an entrepreneur perspective his risk-
taking propensity was to be looked at.
Masculinity vs.
Femininity
Both were
present
The level of adherence varying across
regions and also communities
People in the northern regions of India
showed more of masculine features thank
those in the southern regions
Pragmatic vs.
Normative
orientation
NIL Both existed. Varied across regions and
communities based on literacy levels,
religious influences, and traditions
Indulgence vs.
Restraint
NIL Both existed. Many communities showed
more penchant for Indulgent behaviours
The level of Restraint or indulgence was also
based of economic and social reasons
Ethnic Orientation NIL A significant attribute which also varied
across regions. The cultural identity caused
by social or community associations gave a
unique behavioural and performance
characteristic to the people
63
As discussed earlier in Chapter 2, many researchers have brought out the close
relationship between culture and entrepreneurship on the one hand and that between
culture and economic development on the other (Naude, 2013; Hofstede & Bond
(1988); Thomas & Mueller, 2000; Weiss 1988; Maysami and Goby 1998). So the
various cultural dimensions promulgated by Hofstede et al and now by the experts
have a great significance in the study of micro, small and medium entrepreneurship.
The significant contribution of this study is the identification that there could be a
seventh dimension in the Indian context beyond what Hofstede et al had proposed,
namely, ‘Ethnic Orientation’. Every community or caste (or religion) based
association could have an overwhelming influence on the grooming of its members.
This is mainly due to the cultural influences that the practices, conventions or belief
systems these associations could instil in human beings, controlling and deciding
upon their behavioural patterns. One of the best examples of these cultural instincts
could be seen in the Vaish communities of India.
The other interesting findings from the study are related to Collectivism (vs.
Individualism), Uncertainty Avoidance and Indulgence (vs. Restraint). There were
four situations for Collectivism vs. Individualism and three situations each for
Uncertainty Avoidance and Indulgence vs. Restraint as illustrated in Fig. 4.4.1, Fig.
4.4.2 and Fig. 4.4.3. In an ideal situation there could be high collectivism or high
individualism or a mix of the two. Here based on inputs received from the Indian
experts there could be least eight different possibilities of occurrences which are (see
Fig: 4.4.1):
1) High occurrence of Non Disruptive Collectivism
2) High occurrence of Disruptive Collectivism
3) High occurrence of Non Disruptive Individualism
4) High occurrence of Disruptive Individualism
5) Combination of Non Disruptive Collectivism and Non Disruptive
Individualism
6) Combination of Disruptive Collectivism and Disruptive Individualism
7) Combination of Non Disruptive Collectivism and Disruptive Individualism
8) Combination of Disruptive Collectivism Non Disruptive Individualism
64
Fig. 4.4.1: Possibilities for Collectivism vs. Individualism
In the case of Uncertainty Avoidance three possibilities are suggested (Fig: 4.4.2):
1) Low Uncertainty Avoidance by Choice (Risk-taking Appetite or Propensity)
2) High Uncertainty Avoidance by Choice
3) Low Uncertainty Avoidance due to economic and social backwardness
Fig. 4.4.2: Possibilities for Uncertainty Avoidance
65
In the case of Indulgence and Restraint, experts point out three possibilities (Fig:
4.4.3):
1) High Indulgence (and low restraint) by choice
2) High Restraint (and low indulgence) by choice
3) High Restraint (and low indulgence) due to economic and social backwardness
Fig. 4.4.3: Possibilities for Indulgence vs. Restraint
Fig. 4.4.4: Ethnic Orientations
66
The essence of the experts’ inputs brought out the fact that any cross cultural study
might need to consider ethnicity or ethnic orientations to fully understand an
individual’s behavioural and attitudinal aspects. Ethnic means ‘connected with or
belonging to a nation, race or people that share a cultural tradition’ and ethnicity
means ‘the fact of belonging to a particular race (Oxford Advanced Learner’s
Dictionary, 2015). Ethnicity in India, according to Manor (1996), could be based on
identities grounded on religion, language, tribal and also Aryan and Dravidian
orientations. Ethnicity associated with a group means that the members are aware of
a common origin and culture and there are a set of connections and regular
interactions among the members ‘sharing common national background or migratory
experiences (Aldrich & Waldinger, 1990, p. 112) Every ethnic group has their own
intrinsic social and cultural inheritance which shapes an individual’s behaviour and
attitudes. Ethnic Orientation, therefore, could influence an individual’s attitude to
entrepreneurship as well just like any other cultural dimension. There were three
major components for Ethnic Orientation (see Fig. 4.4.4): they were Religion or Caste
based, Trading practices based, or based on any other minority sub groups like
displaced, refugee, scheduled tribes etc.
4.6 Outcome from the Exploratory Study
The exploratory study brought out various cultural dimensions relevant for Indian
society and which could possibly influence entrepreneurial performance in the MSME
space. The baseline for this study was Hofstede’s six dimensions and the latest value
of the scores as provided by Hofstede. His study of national cultures was based on a
global and scientific approach or a neutral observer’s perspective (Etic approach).
Here an attempt is made to moderate these views though an Emic approach using the
inputs received from forty Indian experts who provided native insider perspectives.
The experts concluded that people’s adherence to Hofstede’s cultural attributes were
dependent on the various regional factors like historic and cultural backgrounds,
literacy levels, level of political and social awareness, and social orientations as
summarised in Table 4.5.1. Their views highly converged on two of the dimensions,
namely, Power Distance, and Masculinity and Femininity subject to the fact that the
67
levels of acceptance varied across regions and also based on literacy, economic and
social aspects.
The experts’ views were divergent in the case of the other four dimensions, namely,
Long Term or Pragmatic (vs. Short Term) orientation, Collectivism (vs.
Individualism), Uncertainty Avoidance and Indulgence (vs. Restraint). Both
Collectivism and Individualism could also be disruptive and unsettling due to
sectarian, doctrine and group based loyalties. In the case of Uncertainty Avoidance,
Indians generally had low levels. One reason for this was due to economic and social
reasons in which case they were destined to face uncertainties year after year and soon
got used to these uncertainties. This was without prejudice to the fact that there was
an emerging group of business entrepreneurs in India who were endowed with low
levels of uncertainties which led to higher business and entrepreneurial risk-taking
propensity. Similarly it was found that that Indulgence could be a choice only for the
people who could afford it and there was a majority of people in India who could not
afford Indulgence as a matter of choice. Restraint behaviour was found predominant
in the country as most of the population was constrained to be so due to economic and
social backwardness.
The study also brought out a seventh cultural dimension called Ethnic Orientation
which was significant in the Indian context. The social, race or caste based
orientation primarily gave a specific social and cultural identity for the people. The
study supported the view that having an ethnic identity borne out of religion, race,
language or minority groups led to superior performance.
4.7 Revisions in the hypotheses based on the outcome from the exploratory and
validation phase
Three main outcomes of the exploratory study affected the statements of hypotheses.
One was the identification of the seventh dimension, namely, Ethnic Orientation,
which needed to be included in the set of cultural dimensions considered for this
research. Secondly, from the perspective of entrepreneurial performance Risk-taking
Propensity had to be considered instead of Uncertainty Avoidance which seems to be
super set as it is seen now. The incorporation of these outcomes would thus revise the
hypotheses.
68
The revised hypotheses are listed below with revisions highlighted in bold print.
Table 4.7.1: Revised Hypotheses
Hypotheses Set-01
H0.1 There is zero variance in the performance of MSME entrepreneurs across the
states, location types, enterprise types, business types and across the various
hierarchical interactions between state, location, enterprise, and business types
Hypotheses Set-02
H0.2.1 There is zero variance in Power Distance of entrepreneurs managing
MSMEs across the two states,
the two locations, the two
enterprise types, the two
business types and across the
various hierarchical
interactions between state,
location, enterprise, and
business types
H0.2.2 There is zero variance in Risk-taking propensity
H0.2.3 There is zero variance in Collectivism
H0.2.4 There is zero variance in Masculinity
H0.2.5 There is zero variance in Pragmatic Orientation
H0.2.6 There is zero variance in Indulgence scores of
H0.2.7 There is zero variance in Ethnic Orientation
Hypotheses Set-03
H0.3.1 Power Distance dimension does not influence MSME
entrepreneurs across the
various hierarchical
combinations of location
types, enterprise types, and
business types in Kerala
H0.3.2 Risk-taking propensity dimension
H0.3.3 Collectivism dimension
H0.3.4 Masculinity dimension
H0.3.5 Pragmatic Orientation dimension
H0.3.6 Indulgence dimension
H0.3.7 Ethnic Orientation
H0.3.11 Power Distance does not influence MSME
entrepreneurs across the
various hierarchical
combinations of location,
enterprise,
and business types in
Maharashtra
H0.3.12 Risk-taking propensity
H0.3.13 Collectivism
H0.3.14 Masculinity
H0.3.15 Pragmatic Orientation
H0.3.16 Indulgence
H0.3.17 Ethnic Orientation
69
4.8 Summary
The validation of the six dimensional framework of Hofstede has led to the
conclusion that these cultural attributes are applicable for India except that the
degrees of adherence vary across various states of the country. The study also
came up with a seventh cultural dimension called ethnic orientation.
In Chapter 5, an attempt is made to discuss how these hypotheses and attributes
would be tested in an empirical setting. In the process the development of the
questionnaire, choice of regions for the study, pilot testing and sample survey
based empirical investigations are all discussed.