Critical issues in the Hofstede and GLOBE national culture models

Purpose: The purpose of this paper is to clarify critical issues underlying the national culture dimensions of Hofstede and GLOBE, demonstrating their irrelevance to international marketing decision-making. Design/methodology/approach: In-depth discussion of the theoretical and empirical logic underlying the national culture dimension scales and scores. Findings: Hofstede and GLOBE national culture scores are averages of items that are unrelated and which do not form a valid and reliable scale for the culture dimensions at the level of individuals or organizations. Hence these scores cannot be used to characterize individuals or sub-groups within countries. The national culture dimension scores are therefore of doubtful use for marketing management that is concerned with individual-and segment-level consumer behavior. Research limitations/implications: Researchers should be cautious in using the Hofstede and GLOBE national culture dimension scores for analysis at the level of individuals and organizations. Practical implications: Hofstede and GLOBE dimension scores should not be used to infer individual/managerial and group/organizational level behavior and preferences. Originality/value: The paper follows a recent paper in IMR which was the first to discuss the common misunderstanding of the Hofstede and GLOBE national culture scales and scores, and their misapplication at the level of individuals and organizations by scholars and practitioners. Here we further expand and clarify the issues

On the misuse of national culture dimensions

Purpose: The purpose of this paper is to highlight the ongoing misapplication of the Hofstede and GLOBE national culture dimensions at the individual level of analysis in both research and teaching. It provides suggestions as to how these national level constructs might be used in analysis and the challenges such use presents to researchers. Design/methodology/approach: The methodology used by Hofstede and GLOBE in their calculation of national culture dimensions is discussed together with the implications. Findings: The consequences of the national nature of the Hofstede and GLOBE national culture dimensions are that the dimensions do not exist at the individual level. The paper explains why, in spite of this, the dimensions continue to be misapplied to individuals. Practical implications: There are important implications for practitioners. The cultural assumptions often made about individuals in different countries based on the Hofstede and GLOBE dimension scores are invalid. Practitioners should not use national culture dimension scores in individual-level culture related decision making. Originality/value: The paper is the first that is focused on the invalid projection of national culture dimensions onto individuals and which highlights the origins and the ongoing nature of this problem

The effect of corporate political activity on MNC subsidiary legitimacy: an institutional perspective

MNC subsidiaries engage in a variety of corporate political activities to gain legitimacy in the host country. Based on institutional theory, our study examines five types of strategies that MNC subsidiaries pursue to gain legitimacy in foreign markets. Using data from Australian subsidiaries of MNCs operating in different industries, and whose parents originate from 28 different countries, we find that mimetic isomorphism strategy has the strongest effect whereas information strategy has no effect on subsidiary legitimacy. The other three strategies, namely, financial, constituency building and relational have strong to moderate effects on subsidiary legitimacy. In addition, we show that multiple CPA strategies are essential and work together synergistically to contribute to the legitimacy of MNC subsidiaries. Our paper provides empirical support to the widely recognized need for MNC subsidiaries to engage in different types of CPA to legitimize their operations in diverse institutional contexts across the globe

Looking beyond national differences: cultural consensus between Confucian and Anglo societies

National cultural research in management primarily examines cultural differences between countries. Theory and practice recommendations relating to the conduct of international business are then commonly derived from these cultural differences. We propose that attention should also be paid to the ways in which nations are culturally similar. Applying data from the GLOBE national culture model, we reveal cultural similarities across two cultural groups that are usually considered to be representative of important cultural differences. We show six Confucian societies are remarkably similar to seven Anglo societies in respect to their GLOBE culture dimensions scores. We offer support for a so far largely ignored “universal culture” approach in international management that recognizes cultural similarities and balances it with the predominant cultural differences perspective. Implications for management theory and practice are drawn. JEL Classification: M14, M16

The (IR)Relevance of national culture dimensions in marketing

The national culture dimensions of Hofstede are often used in marketing to understand differences in consumer perceptions, preferences and behaviour across countries. Recently, the GLOBE model, in replicating and extending the Hofstede dimensions, offered a similar approach to Hofstede’s to examine national culture differences. However, our comparative analysis of the two models reveals serious anomalies and contradictions between similar dimensions in both models, raising doubts about what really is captured by the national culture models. In addition, the Hofstede and GLOBE dimensions are national system-level constructs and do not characterize the individuals in the countries, as noted by the authors of both models. Based on our examination of these two critical problems, we call into question the relevance and appropriateness of national culture dimensions for marketers to understand consumer behaviour across countries

The common threads of national cultures

Culture related research in international marketing focusses largely on cultural relativism, that is, on cultural differences between countries. It examines the implications of national culture differences and how to manage the differences while doing business across national borders. These discussions are either framed within the emic versus etic debate, or under the rubric of national culture dimensions. Our paper addresses the equally important but largely ignored question of cultural universalism, that is, how nations are culturally similar. Using the GLOBE national culture dimensions data, we find significant similarities among the GLOBE nations. Our paper contributes to the cultural relativism versus universalism debate, and extends marketing theory with a “universal culture” approach that we believe can enhance understanding and cooperation among international business managers. Overall, our findings have important implications for scholars and practitioners