COEUR - BCM Business Creativity Module “Intercultural Competencies in Europe” Andrew Turnbull, Module Coordinator

COEUR - BCMBusiness Creativity Module

“Intercultural Competencies in Europe”

Andrew Turnbull, Module Coordinator

Intercultural Competencies in Europe

Outcomes

• Understanding ‘culture’

• Creating awareness of cultural differences

• Developing intercultural competencies


Global Entrepreneurship

Following the idea of global standardisation, taking US experiences as core benchmark.

Local Entrepreneurship

Following the idea of the transnational enterprise, adapting strongly to local conditions.

EuroPreneurship AfroPreneurshipSinoPreneurship

Entrepreneurship Orientations

2.3 Cultural diversity as facilitator of change


National Entrepreneurship Cultures

Differences become evident in:

• Traditional political and societal stereotypes of institutional coordination

• Business and leadership mentalities

• Attitudes, behavioural norms• Natural and cultural specialities


National Stereotypes and Intercultural Management

• F - centralistic, hierarchical, belief in elites, democratic, easy-living, emotional...

• GB - polite, reserved, fair play, nations within a nation, each different, traditional, class orientated…

• D - formal, risk-averse, punctual, precise to pedantic, bureaucratic...


NORTHThinking

Professional ManagerRationalism

EASTIntuiting

Developmental ManagerWholism

SOUTHFeeling

Convivial ManagerHumanism

WESTSensing

Experiential Manager Pragmatism

Fig. 1 – European comprehensiveness (adpated from Lessem and Neubauer (1994), p.p. 268, 274


Managerial Experiences (2001)Sir Chris Gent (Vodafone) vs. Rupert Esser (Mannesmann)

• always very diplomatic and indefinite – no “yes” or “no”open to interpretation and misunderstanding

• strong common code of communication and formalised behaviour

tonality, questions, ideas are more important than explicit orders

• Short and friendly business-communication vs. ‘serious’ negotiations

the principle of understatement vs. the proof of expertise


European Entrepreneurship!

„A very difficult subject, since from my experience, the similarities, notably in Northern Europe, are now so much greater than the differences. Particularly true as regards the entrepreneurs themselves...

The major differences apply to the systems in which individuals work - fiscal, financial, industrial and educational - only on this level is it valid to talk about differences.

There is a "common European spirit of entrepreneurism“ developing. National "systems" however, tend to frustrate this to the extent that, for example, there is not an enlightened taxation policy regarding share option operations, or an education system which puts weight on commercial as well as technical instruction at secondary and tertiary levels.“

(Weaver, John., Central Research Laboratories Ltd, e-mail-Antwort an den Verfasser: [email protected] June 2000)


The Macro Environment

Entrepreneurial behaviour is embedded in specific surroundings from which it can‘t be separated. Differences are based on macro-environmental factors:• Business and financial constitution, IPR, labour legislation...• Development and utilisation of technologies, intensity and

transfer of research, education levels, propensity to innovate...• Population structures/demographics, attitudes, societal values...• Economic situation and perspective, degree of global integration,

international competitiveness, language issues...

• Availability of resources: natural, human, communication, technology, logistics, service...


EuroPreneurship!

„Europe‘s New Economy“ Charles Leadbeater, Centre for European Reform, discovered a basis for the

formation of a new common European Business-Culture at high-tech enterprises :

„Encouragingly, a new business generation is emerging in Europe, with shared aspirations, values and outlooks. The common features among Europe's 20 and 30-something entrepreneurs are far more striking than the differences. They tend to create businesses with similar characteristics although they do so in quite different local circumstances and regulatory regimes. This new generation generally speaks English, runs non-unionised companies with flat management structures that are international in outlook, and raises finance through venture capital rather than bank lending.“

(www.cer.org.uk/articles/n_9_4.html, 26.6.2000,)

N e w !


Understanding Culture

• What is it and what is it not?

• Learning from the experts– Edward Hall– Geert Hofstede


Culture is....

(1) ..a shared system of meanings, which are

(2) ..relative

(3) ..learned

(4) ..about groups Specific togroups

Human nature

Personality

Specific toindividuals

Inherited and learned

Universal

Learned

Biological

CultureSpecific togroups

Human nature

Personality

Specific toindividuals

Inherited and learned

Universal

Learned

Biological

Culture


Culture is not....

(1) ..right or wrong

(2) ..inherited

(3) ..about individual behaviour

Intercultural Competencies in EuropeWinter 2008/09

Local Adaptation

The world is not homogeneous. Different cultures manifest in colours, scripture, habits and more.

Successful transnational branding adapts to peculiarities while maintaining the structural elements and character of the brand.

Ronald McDonald


Learning from the experts..

Edward T. Hall *16.05.1914, USA

- ‚The Silent Language‘ (1959)

- 2 Dimensions:

‚High context‘ vs. ‚low context‘

‚Timeorientation‘


Do you understand your culture?1. Do you usually pick up the body language of others

and know intuitively if something is bothering them?

a) No

b) Yes

2. When deciding on a person to promote in your department, you face the problem of choosing between two equally qualified individuals, one of whom is your cousin. What do you do?

a) Choose the applicant who is not your cousin

b) Choose your cousin


1. You are on vacation. The mass transit train arrives late and the platform is quite crowded. What do you do?

a) Push forwardb) Wait patiently to board2. Are you comfortable doing multiple tasks at the same

time?a) Nob) Yes3. Are your business colleagues and the group you

socialise with usually similar?a) Nob) Yes

Do you understand your culture?


Geert Hofstede, *2.10.1928, Netherlands

- ‚Cultures Consequences‘(1980)

- 4 Dimenions:

Power Distance

Individualism

Uncertainty Avoidance

Masculinity

Learning from the experts..


The culture onion


The 4 Dimensions....

1) Power distance:Extent to which the less powerful members of organisations and institutions accept and expect that power is distributed unequally

2) Individualism vs. Collectivism:

Extent to which people are expected to stand up for themselves and to choose their own affiliations, or alternatively act predominantly as a member of a life-long group or organisation


3) Masculinity vs. Femininity:Refers to the value placed on traditionally male or female values

4) Uncertainty Avoidance:Extent to which members of a society attempt to cope with anxiety by minimizing uncertainty

The 4 Dimensions....


The 5th Dimension...

5) Long v. Short Term Orientation • Long term orientation characteristics

- persistence- ordering relationships by status and observing this order- having a sense of shame

• Short term orientation characteristics- personal steadiness and stability- protecting your ‘face’- respect or tradition


Index of the 4 Dimensions ...especially in BCM Countries

Source: Adapted from Hofstede

Country PowerDistance Individualism Masculinity UncertaintyAvoidance

China 80 20 66 40

France 68 71 43 86

Poland 68 60 64 93

Portugal 63 27 31 104

Czech Republic 57 58 57 74

Germany 35 67 66 65

United Kingdom 35 89 66 35

Sweden 31 71 5 29


Implications for working styles of a society ?

Collectivism-oriented Individualism-oriented

Social recognition... Individual careers...

... ...

Uncertainty avoidance high Uncertainty avoidance low

Work place guarantees Low social security

... ...

Power Distance high Power Distance low

Low risk of strike.. High risk of strike..

.... ...

Masculine Culture Feminine Culture

Status symbols Distinct social benefits

... ...


- People from different cultures are not just from different parts of the world - their way of perceiving the world is different!

- Hofstede‘s research creates awareness of these differences so that we can be more effective when interacting with other cultures.

- Considering this concept can reduce frustration and misunderstandings

Practical Applications for International Teamwork?

Globe Smart

Is Matthias a typical German?

UK and Matthias

Living in China?


A Single Europe ?



A Single Europe ?


Heaven

• French cooks • British police• German engineers• Swiss organizers• Italian lovers

Hell

• British cooks• German police• French engineers• Italian organizers• Swiss lovers

Our Vision

European diversity is fostering creativity

in business and society to support sustainable

future development!


Conclusion

• Learn as much as possible about cultures

• Learn from the experts – but form your own opinion!

• Avoid stereotypes!

Good luck!


Literature

• Hall, E.(1990): The silent language, New York• Hoecklin, L.(1995): Managing Cultural Differences: Stratgies for

Competitive Advantage, Wokingham et. Al.• Hofstede, G.(1987): Culture‘s Consequences: International

Differences in work-related values, Beverly Hills u.a. • Pinxten, R./Cornelis, M./Rubinstein, R.(2007): European Identity:

Diversity in Union. In: International Journal of Public Administration, Vol. 30 Issue 6/7, p. 687-698

• Reynolds, S./Valtentine, D.(2004): Guide to Cross-Cultural Communication, New Jersey

• Thiagarajan, S./Steinwachs, B.(1990): Barnga: A Simulation Game on Cultural Clashes, London

Documents

COEUR - BCM Business Creativity Module “Intercultural Competencies in Europe” Andrew Turnbull, Module Coordinator