Research Question:

26-29 June 2013EURAM Istanbul - Dr Ursula Schinzel

EURAM 2013 26-29 June 2013

Annual Conference of the European Academy of Management

Why are People in Luxembourg Happy?

Language as an Identifier of Culture in the Grand Duchy

byDr Ursula Schinzel 00352.621.322.543

[email protected]

EURAM 2013 26-29 June 2013

Annual Conference of the European Academy of Management

Why are People in Luxembourg Happy?

Language as an Identifier of Culture in the Grand Duchy

byDr Ursula Schinzel 00352.621.322.543

[email protected]

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Research Question:Research Question:

The purposes of this study are:The purposes of this study are:

1.1.to explain where Luxembourg fits to explain where Luxembourg fits in on Hofstede’s 7 dimensions of in on Hofstede’s 7 dimensions of cultureculture

2.2.to explain Luxembourg people’s to explain Luxembourg people’s high scores on the measure of high scores on the measure of happiness happiness

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Review of the LiteratureReview of the Literature Participant Observation (Primary Data)Participant Observation (Primary Data) Interviews (Primary Data)Interviews (Primary Data) Questionnaires (Primary Data)Questionnaires (Primary Data)

MethodsMethods

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Literature ReviewLiterature Review The era before The era before

Hofstede:Hofstede: Maslow, AbrahamMaslow, Abraham McClelland, DavidMcClelland, David Herzberg, FrederickHerzberg, Frederick Rockeach, MiltonRockeach, Milton Hall, EdwardHall, Edward Kluckhohn, Florence and Strodtbeck, FredKluckhohn, Florence and Strodtbeck, Fred

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The era after Hofstede:The era after Hofstede: Triandis, HarryTriandis, Harry Smith, Peter, B.Smith, Peter, B. Schwartz, ShalomSchwartz, Shalom Trompenaars, Fons & Hamden-Turner, CharlesTrompenaars, Fons & Hamden-Turner, Charles De Mooij, MariekeDe Mooij, Marieke Inglehart, RonaldInglehart, Ronald The GLOBE, House, Robert; Hanges, Paul…The GLOBE, House, Robert; Hanges, Paul… Schein, EdgarSchein, Edgar Bond, Michael, HarrisBond, Michael, Harris Mintzberg, HenryMintzberg, Henry Minkov, MichaelMinkov, Michael Hofstede, Gert JanHofstede, Gert Jan McSweeneyMcSweeney

The era besides The era besides Hofstede:Hofstede:

Scholz, Christian; Böhm, HansScholz, Christian; Böhm, Hans Lewis, Richard D.Lewis, Richard D. Spizzo, DanielSpizzo, Daniel

The era beyond Hofstede:The era beyond Hofstede: Aaker, JenniferAaker, Jennifer Briley, DonnelBriley, Donnel Nakata, CherylNakata, Cheryl Kirkman, Hong, Benet-Martínez, Leung, Hermans, Kempen….Kirkman, Hong, Benet-Martínez, Leung, Hermans, Kempen….


What did he do?What did he do? Born in the Netherlands in 1928Born in the Netherlands in 1928 IBM HRM research in the 1960sIBM HRM research in the 1960s 116,000 questionnaires116,000 questionnaires Identified 4 cultural dimensions, later added more:Identified 4 cultural dimensions, later added more:

IDV/COLL, UAI, PDI, MAS/FEM, IDV/COLL, UAI, PDI, MAS/FEM, LTO, IVR, MON.LTO, IVR, MON.

Dared to contradict Maslow, Herzberg, McClellandDared to contradict Maslow, Herzberg, McClelland Brought cultural research from the US to EuropeBrought cultural research from the US to Europe Emeritus Professor at Maastricht UniversityEmeritus Professor at Maastricht University http://www.geerthofstede.nl/

Start at 2:36Start at 2:36

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Geert Hofstede (1928- )Geert Hofstede (1928- )


Hofstede’s Dimensions of CultureHofstede’s Dimensions of Culture

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Masculinity versusFemininity (MAS)

Power Distance Index (PDI)

Long-Term versus Short-Term

Orientation(LTO)

Indulgence versusRestraint (IVR)

UncertaintyAvoidance (UAI)

Individualism versus Collectivism

(IDV)

Monumentalism(MON)

Hofstede's Dimensions of Culture - Explained Easily :http://www.youtube.com/watch?v=6gJzRS0I7tA&feature=relatedhttp://www.youtube.com/watch?v=i2YG6Wb3j0s&feature=youtube_gdata_player


LuxembourgLuxembourg

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Unitary parliamentary democracy and constitutional monarchyUnitary parliamentary democracy and constitutional monarchy Grand Duke: HenriGrand Duke: Henri Prime Minister: Jean-Claude JunckerPrime Minister: Jean-Claude Juncker Official languages: Luxembourgish, French, GermanOfficial languages: Luxembourgish, French, German Capital Luxembourg (90,000 inhabitants)Capital Luxembourg (90,000 inhabitants) Size: 2,586 km2Size: 2,586 km2 Population total: 511,000Population total: 511,000 Motto: “Mir wëlle bleiwe wat mir sinn” Motto: “Mir wëlle bleiwe wat mir sinn” “We want to remain what we are” “We want to remain what we are”

Anthem: “Ons Heemecht” – “Our Homeland”Anthem: “Ons Heemecht” – “Our Homeland”

Queen Mary II and Marie-Astrid

26-29 June 2013EURAM Istanbul - Dr Ursula Schinzel 8

Hypothesis 1: Native Luxembourgers scores on PDI, UAI, IDV, MAS, LTO, IVR,

MON cultural dimensions are significantly different from the scores of non-Luxembourgers in Luxembourg

Hypothesis 2: There are significant differences between Hofstede et al.’s PDI, UAI,

IDV, MAS, LTO, IVR, MON cultural dimensions estimates for Luxembourg and the empirical values found in this study for

Luxembourgers with Luxembourgish Nationality

Hypothesis 3:Luxembourgers are happy because they Use their language as

identifier, are highly uncertainty avoidant, are long-term oriented,have low power distance, are highly collectivist


Data Analysis: Data Analysis: ParticipantParticipant

ObservationObservation

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HRone

American Chamber of Commerce

Chamber of Commerce and Sacred Heart University Luxembourg

PaperJam Business Club European

Commission

Luxembourg prefers:Meeting in person; in a Hotel or Bank; over Cocktail with Champagne/Lunch or Dinner

LPRA – Luxembourg Professionals Recruiters Association

Brasseries, Restaurants,Hotels, Bars.

Femmes Leaders Luxembourg

POG – Personnel Officer’s Group

Libreria Italiana

BEE SECURE

Fairs‘Foires’

University Luxbg


PDI = 35(mQVAL7 – mQVAL2) + 25(mQVAL23 – mQVAL26) + C (pd)PDI = 35(mQVAL7 – mQVAL2) + 25(mQVAL23 – mQVAL26) + C (pd) UAI = 40(m QVAL20 – mQVAL16) + 25(mQVAL24 – mQVAL27) + C (ua)UAI = 40(m QVAL20 – mQVAL16) + 25(mQVAL24 – mQVAL27) + C (ua) IDV = 35(mQVAL4 – mQVAL1) + 35(mQVAL9 – mQVAL6) + C (ic)IDV = 35(mQVAL4 – mQVAL1) + 35(mQVAL9 – mQVAL6) + C (ic) MAS = 35(mQVAL5 – mQVAL3) + 35(mQVAL08 – mQVAL10) + C (mf)MAS = 35(mQVAL5 – mQVAL3) + 35(mQVAL08 – mQVAL10) + C (mf) LTO = 40(mQVAL18 – mQVAL15) + 25(mQVAL28 – mQVAL25) + C (ls)LTO = 40(mQVAL18 – mQVAL15) + 25(mQVAL28 – mQVAL25) + C (ls) IVR = 35(mQVAL12 – mQVAL11) + 40(mQVAL19 – mQVAL17) + C (ir)IVR = 35(mQVAL12 – mQVAL11) + 40(mQVAL19 – mQVAL17) + C (ir) MON = 35(mQVAL14 – mQVAL13) + 25 (mQVAL22 – mQVAL21) + C MON = 35(mQVAL14 – mQVAL13) + 25 (mQVAL22 – mQVAL21) + C

(mo)(mo)

Culture Calculation FormulasCulture Calculation Formulas

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Hofstede’s Cultural Dimension:Interviews’ and Questionnaires’ Results in Collaboration with Lindab Buildings Diekirch

Table 1 Comparison Luxembourg – Luxembourg with Luxembourgish nationality (Lux. Nat.) – Hofstede’s estimates on Luxembourg (On a scale from 1-100, 1 being the lowest and 100 the highest score)

Luxembourg Lux. Nat. Hofstede’s estimates on Luxembourg

PDI 36 29 40UAI 97 95 70IDV 51.5 34 60MAS 47 54 50LTO 69 65 64IVR 53.5 55 56MON 10 24 -


Cultural dimensions in Luxembourg - Lux. Nat. – France – Germany – UK – Belgium FR – Belgium NL – Italy – the Netherlands NL – China – USA – Japan (on a scale from 0-100) (0=lowest, 100=highest)

Luxbg Lux.Nat.

France Germany UK Belgium FR

Belgium NL

Italy NL China USA Japan

PDI 36 29 68 35 35 68 61 50 38 80 40 54UAI 97 95 86 65 35 93 97 75 53 30 46 92IDV 51.5 34 71 67 89 71 78 76 80 20 91 46MAS 47 54 43 66 66 60 43 70 14 66 62 95LTO 69 65 63 83 51 82 82 61 67 87 26 88IVR 53.5 55 48 40 69 57 57 30 68 24 68 42MON 10 24 16 10 35 - - 35 11 0 57 4.0


What is What is Logistic Logistic

Regression?Regression?http://video.mynet.com/1982yucel/Arabic-Super-hits-Belly-Dance/1447061/

start at 1:02Logistic regression allows prediction of group membership, for example, prediction of whether someone is a belly dancer based on gender, occupational category, preferred type of reading material and age. Logistic regression allows to evaluate the odds (the probability) of membership in the group of belly dancers based on the combination of values of the predictor variables, 25 year old female sports professor, teaching hip-hop and reading dance books


Logistic RegressionDefinition:

Logistic Regression is a statistical method used to model the relationship between a qualitative dependent variable – like for example ‘happiness’ – and a combination of independent variables – like for example ‘taking risk’, ‘free time for life’, ‘level of education’ ‘job level manager or non-manager’, ‘state of health’, ‘religion’

Logistic Regression is calculated in SPSS. SPSS is a computer program from IBM. SPSS means ‘Statistical Package for the Social Sciences’. Between 2009 and 2010 it was called PASW – ‘Predictive Analytics SoftWare’


Logistic Regression

Regression Coefficients

Odds Ratios

Taking Risk 0.931 2.538Free Time for Life 0.974 2.647Level of Education -0.930 0.394Contradict boss 1.096 2.993State of health 1.485 4.416Importance of Religion

0.677 1.969

Constant -0.628 0.534

Dependent Variable: Being happy


Correlation Matrix* Significant at .05

Taking Risk

Free Time for Life

Level of Education

Contradict boss

State of health

Importance of Religion

Taking Risk 1.000 -

Free Time for Life

0.214 1.000

Level of Education

0.054 -0.213 1.000

Contradict boss

-0.149 0.126 0.182 1.000

State of health 0.105 0.006 -0.279 -0.233 1.000

Importance of Religion

0.195 -0.101 -0.122 -0.065 0.086 1.000


Constant -0.628

For a person who takes risks +(0.931)x1

And who takes free time for himself/herself

+(0.974)x1

Who has a high level of education +(-0.930)x1

Who dares to contradict the boss +(1.096)x1

Whose state of health is good +(1.485)x1

For whom religion is important +(0.677)x1

e = 3.605

z = 3.605 = 36.7817 + 1 = 37.7817logit = p

with z = with the constantp= p= p = 0.97 The probability for this person to be happy is 0.97. This is a very high probability,

near 1

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Logistic Regression: Logistic Regression: The probability of The probability of Luxembourgers of Luxembourgers of being happybeing happy

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Who does Not take risk

Probability of being happy =

0.97

Person 1

Person 2

Probability of being happy =

0.94

Who takes free time for life for him/herself

Who has a high level of education

Who dares to contradict the boss

Whose state of health is good

For whom religion is important

Who takes riskWho takes free time for life for him/herself

Who has a high level of education

Who dares to contradict the boss

Whose state of health is good

For whom religion is important


Correlation among all variables in SPSSCorrelation among all variables in SPSS

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PDI UAI IDV MAS LTO IVR MON HAPPY

GENDER AGE EDUCATION

PDI -

UAI -.021 -

IDV .135 -.011 -

MAS .206* -.060 .517** -

LTO .138 .059 .030 .000 -

IVR .031 .043 .318** .272** .042 -

MON .068 .023 .245** .129 -.089 .244** -

HAPPY .038 .160 .045 .014 .268** .293** .001 -

GENDER -.030 .073 -.041 -.012 .004 -.029 -.105 .029 -

AGE -.117 .031 -.059 .022 -.076 .108 -.312** .040 -.128 -

EDUCATION.037 -.155 .106 .094 .119 .112 .060 .082 .120 -.025 -

RANK.

.230** .210* -.001 .016 .080 -.043 .090 .006 .162 -.490** -.084

N=134; * p<.05; ** p<.001


ConclusionConclusion

LuxembourgersLuxembourgers use their language as identifieruse their language as identifier are highly uncertainty avoidantare highly uncertainty avoidant

are long-term orientedare long-term oriented have low power distancehave low power distance

are highly collectivistare highly collectivist and are happyand are happy

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HAPPY

HIGH UNCERTAINTY

AVOIDANCE

LOW POWER DISTANCE

HIG

H C

OLLECTIVIS

M/

LOW IN

DIVID

UALISM

LANGU

AGE AS

IDEN

TIFIER

LONG-TERM ORIENTATION Hypothesis 1, 2,

3 are confirmed


EXPLANATIONS EXPLANATIONS PDIPDI POWER DISTANCE INDICATORPOWER DISTANCE INDICATOR

PDILuxembourg is low with 36/100

PDILux.Nat.: 29/100

China: 80USA: 40

PDI (Power Distance Indicator)Luxembourg is small, hierarchy is not felt that much, boss and employees

meet in the same sport clubs, supermarkets, bars, evening events


EXPLANATIONS EXPLANATIONS UAIUAI UNCERTAINTY AVOIDANCE INDICATORUNCERTAINTY AVOIDANCE INDICATOR

UAI Luxembourg is

high 97/100

UAI Lux.Nat. 97/100

UK: 35USA: 46

UAI Uncertain and unknown situations are avoidedSecure, regulated, clear life without surprises,

is preferred


EXPLANATIONS EXPLANATIONS IDVIDVINDIVIDUALISM VERSUS COLLECTIVISMINDIVIDUALISM VERSUS COLLECTIVISM

IDV Luxembourg is

medium 51.5/100

IDV Lux.Nat. low IDV

34/100USA: 91Italy: 76

IDV Lux.Nat. are highly collective people preferring

the well-being of the group and country


EXPLANATIONS EXPLANATIONS MASMAS MASCULINITY VERSUS FEMININITYMASCULINITY VERSUS FEMININITY

MAS the characteristics of a masculine dominant country = competition and success, and those of a feminine dominant country = caring for others, quality of life, are equally distributed

MAS Lux.Nat. is

medium 54/100Japan: 95

NL: 14

MAS Luxembourg is medium 47/100


EXPLANATIONS EXPLANATIONS LTO LTO LONG-TERM ORIENTATION VERSUS SHORT-TERM LONG-TERM ORIENTATION VERSUS SHORT-TERM

ORIENTATIONORIENTATION

LTO Luxembourg is

high 69/100

LTO Lux.Nat. is high

65/100 USA: 26

Germany: 83

LTO •LTO is characterized by foreseen, and planned events and by perseverance and thrift


EXPLANATIONS EXPLANATIONS IVR IVR INDULGENCE VERSUS RESTRAINTINDULGENCE VERSUS RESTRAINT

IVR In general: indulge in life, love profiting from

the benefits of life, enjoy life

IVR Luxembourg is

medium 53.5/100

IVR Lux.Nat. is medium

55/100China: 24Italy: 30USA: 68


EXPLANATIONSEXPLANATIONS MON MON MONUMENTALISMMONUMENTALISM

MON Luxembourg is

low 10/100

MONLux.Nat. is low

24/100USA: 54.2Japan: 4

MONLux.Nat. love their national traditions and

nationality, the Grand Ducal family, National Day, National Hymn and are living their national identity


Language as IdentifierLanguage as Identifier

Assure national Assure national identityidentity

World War 1 World War 1 and 2and 2

Discriminating Discriminating factor for factor for

identificationidentification

NationalityNationality

Access to Access to advantagesadvantages

ImportanceImportance


Hofstede’s Dimensions of Culture Hofstede’s Dimensions of Culture in Luxembourg: in Luxembourg: Why are people in Why are people in

Luxembourg happy?Luxembourg happy?Luxembourgers are happy because they:

Use their language as identifierare highly uncertainty avoidant

are long-term orientedhave low power distance

are highly collectivist

Hypothesis 1, 2, 3 are confirmed


Thank you for your attention

Documents

Research Question: