Analysis of Chinese Culture on the Basis of Hofstede’s Culture Model and Practical Examples

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FOM Hochschule für Oekonomie & Management Essen
FOM University of Applied Sciences Essen

Term paper

About

Analysis of Chinese Culture on the Basis of Hofstede’s Culture Model and Practical Examples

Course: Instructor:

Intercultural Competence Prof. Dr. Ingrid Eumann

Author:

Alexander Kerst Lütgendortmunder Str. 30, 44388 Dortmund Phone: +49 175 417 5850 | E-Mail: akerst@gmx.de

Student-ID: Study programme: Degree:

216269 International Management Bachelor of Arts (B.A.)

August 2010

I

Contents
List of Figures ................................................................................................................. II List of Abbreviations ..................................................................................................... II 1 2 Introduction.............................................................................................................. 1 Hofstede’s Culture Study ........................................................................................ 1 2.1 2.2 2.3 2.4 2.5 3 Power Distance (PDI) ......................................................................................... 2 Individualism (IDV) ........................................................................................... 2 Masculinity (MAS) ............................................................................................. 3 Uncertainty Avoidance (UAI) ............................................................................ 4 Long-Term Orientation (LTO) ........................................................................... 4

The Chinese Culture Applied to Hofstede’s Culture Model ................................ 5 3.1 3.2 3.3 3.4 3.5 Power Distance Index (PDI) ............................................................................... 7 Individualism (IDV) ........................................................................................... 7 Masculinity (MAS) ............................................................................................. 8 Uncertainty Avoidance Index (UAI) .................................................................. 9 Long-Term Orientation (LTO) ........................................................................... 9

4

Summary................................................................................................................. 10

References ...................................................................................................................... 11

II

List of Figures
Figure 1: Individualism vs. Collectivism (source: author according to Reisach et al. (2003, p. 348) .................................................................................................................... 2 Figure 2: Chinese scores compared to Germany (Hofstede n.d. , p. 1 of 3) ..................... 6

List of Abbreviations
PDI IDV UAI MAS LTO CVS Power Distance Index Individualism Index Uncertainty Avoidance Index Masculinity Index Long-TermOrientation Chinese Value Survey

1

1

Introduction

In a globalized world transnational companies and everyone who faces different cultures, it is a big challenge to understand and step across cultural differences. China is experiencing the rise from an agricultural emerging nation to one of the world’s biggest national economies. The change and growth of China was triggered by a economical reforms of the communist Chinese government in the late 1970s. Today, China is a communist country with a market economy. Many manufactures are made in China being evidence of the rise of China. Thus many business men explore the opportunity to do business in China. But the risk is that a lack of understanding for Chinese culture can often result in failure and the waste of money, while a good knowledge opens doors to succeed in China. The paper proceeds as follows. First, it outlines the cultural model developed by the Dutch scholar Geert Hofstede...
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