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BUSINESS EDUCATION IN "DYNAMIC SOCIETIES“BUSINESS EDUCATION IN "DYNAMIC SOCIETIES“

Are there basic Are there basic business business

values that differ values that differ from country to from country to

country? country? Prof. Vesselin BlagoevProf. Vesselin Blagoev

Bonuses Bonuses

for those for those

who who

multi-multi-culticulti

For best management model go aheadFor best management model go ahead

Dutch vs French managementDutch vs French management

Gerard van Schaik at CEEMAN 2003 annual conference (Chairman of Martinair/Heineken/EFMD): There was not a single example of a successful French-Dutch joint venture for the differences between French and Dutch national cultures. Dutch employees were unhappy in each case of a new JV because of the authoritarian French management, which is strongly resented in the Netherlands.

Blagoev (2010, p.22)

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French view on French view on Dutch managementDutch management

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We came We came to a to a

consensus consensus how to how to

managemanage

The new cultural The new cultural environmentenvironment

5

Other norms accepted as a Other norms accepted as a

result of globalizationresult of globalization

Additionally Additionally

taught and taught and

accepted accepted

professional and professional and

religious values religious values

and normsand norms

National National

cultureculture, ,

values and values and

normsnorms

Influence of new Influence of new

technologies technologies

((InternetInternet,,

Google,Google, mobile mobile

comscoms))Blagoev

(2014)

Here we Here we live and live and

teachteach

Cultural map of the worldCultural map of the world Minkov, Blagoev & Hofstede (2013)Minkov, Blagoev & Hofstede (2013)

49 49 countriescountries, , clustered byclustered by cultural cultural factorsfactors

(№198-208 от (№198-208 от WVS)WVS)

Journal of Cross-Cultural Psychology (2013) 44, p.1100

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Are customers different?Are customers different?

120

60

0

0 50

100

UAI+

UAI-

FEMININEFEMININE MASCULINEMASCULINE

Style Design Fashion

Security Functionality

Technology Innovation

Power Recognition

Big

Portugal

France

Spain

Greece

Belgium

Italy

Austria

Germany

Swiss

Finland

Nederland

Norway

Sweden

Denmark

Poland

USA

UK

Ireland

Russia

Bulgaria

Japan

Singapore

China

Renault Renault

Citroen Citroen

PeugeotPeugeot

  

Audi, VW, BMW Audi, VW, BMW

Alfa Romeo Alfa Romeo

  

VolvoVolvo

  

SUVSUV

  

Unce

rtain

ty

Unce

rtain

ty

avoid

an

ce

avoid

an

ce

index

index

Major motives Major motives when buying when buying a car a car

For 22 of all 23 countries we find out, that Hofstede cultural dimensions’ index coincide with our observations about the prevailing customers’ preferences.

Blagoev (2014, p.66). Calculated based on the idea of De Mooij (2010)

ComparisonComparisonProblem or Problem or external stimuli external stimuli

PurchasePurchase

Buyer behaviour model Buyer behaviour model in case of low involvement in case of low involvement

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Global Global

environment environment

influencesinfluences

Marketing stimuli Marketing stimuli such as such as adsads, , promotions, promotions, etc. etc. Are

there

strongly

Are th

ere stro

ngly

prefe

rred b

rands

prefe

rred b

rands??

Word-of-mouth

Word-of-mouth??Blagoev (2014, p.56)

My

valu

es

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Map of cultures by UAI and PDIMap of cultures by UAI and PDI

Blagoev (2014, p.67)

Calculated using the Hofstede indexes for these countries

SingaporeSingapore

Map of cultures on UAI and PDIMap of cultures on UAI and PDI

Quite many commercials in Russia are based on emotions, i.e. “Where we are desired“ („Там где нас ждутТам где нас ждут“) and “The time goes on… We remain ourselves.” („Время течет... Мы Время течет... Мы остаемся собойостаемся собой......“) and obviously this has positive effect on the sales

In Bulgaria the ads/commercials which use celebrities are less successful compared to in other countries.

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Culture and AdvertisingCulture and Advertising

For cultures with highhigh Uncertainty Uncertainty Avoidance IndexAvoidance Index: ads with more details, elements of scientific proofs/tests, professional advise about quality, seem to be more successful. Key words such as „clean“, „tested“, „fresh“, „certified“, „licensed“, „accredited“ help to consider the product as lowering the risk and therefore - better.

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For Short Term Orientation CulturesShort Term Orientation Cultures, i.e. USA, and for the countries with high percent of customers with low income, the ads claiming fast effect and/or profit seem to be more efficient. Very often the appeal is: „Buy now and save...“, „Promotion ...%“, „The lowest prices in ...“, „Do not wait“ .

Culture and advertisingCulture and advertising

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In the cultures with high Masculinitycultures with high Masculinity (success above all) the ads claiming uniqueness, such as №1 in the world, ......., seem to be more efficient. Very often the ads claim: „№1 in .........“, „Be the first“, „Win now“, „The winner takes it all“, „Simply the best“, „The dream comes true“ and the like. The hyperbolizing of the brand/product is not based on evidence, but on the claim that. Still it works in such cultures

Cultures and AdvertisingCultures and Advertising

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Cross-Cultural Cross-Cultural Sociogenetics: Sociogenetics:

The Case of The Case of SerotininSerotinin

Minkov, M., Blagoev, V. & Bond, M. (in press). Improving the Emerging Field of Cross-Cultural Sociogenetics: The Case of Serotinin, Journal of Cross-Cultural Psychology.

Genetic differences at the population level can account for societal differences in values, personality, cognitive abilities, and behaviors. Hofstede and McCrae (2004) showed that measures of personality traits personality traits aggregated to the national level are highly aggregated to the national level are highly correlated with dimensions of national correlated with dimensions of national culture culture extracted from measures of values and beliefs.

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Linking Cultural Traits to Linking Cultural Traits to Prevalence of Genetic Prevalence of Genetic

PolymorphismsPolymorphisms

Linking Cultural Traits to Linking Cultural Traits to Prevalence of Genetic Prevalence of Genetic

PolymorphismsPolymorphisms

A number of genes that regulate brain activity or brain size, such as the serotonin-transporter gene (SLC6A4), the dopamine-transporter gene (DRD4), and microcephalin (MCPH1), have been found to be highly polymorphic and the worldwide distributions of the polymorphisms create clear geographic patterns.

All reliable dimensions of national culture reported so far define clearly distinguishable geo-economic patterns (Dobson & Gelade, 2012; Minkov, Blagoev, & Hofstede, 2013).

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5-HTTLPR S-Allele 5-HTTLPR S-Allele Prevalence Across NationsPrevalence Across Nations Holmberg and Lesch (2011) point out that the S S

alleleallele is associated with is associated with enhancement of a wide enhancement of a wide range of cognitive functionsrange of cognitive functions, notably improved , notably improved decision-making through better probabilistic and decision-making through better probabilistic and temporal discountingtemporal discounting.

Chiao and Blizinsky (2010) and Murdoch et al. (2013) show that the worldwide variation of the variation of the prevalence of the S alleleprevalence of the S allele is quite great - ranging from about 12 percent of all 5-HTTLPR allele occurrences among the African Mbuti to about 80 percent in some populations in East Asia

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5-HTTLPR S-Allele 5-HTTLPR S-Allele Prevalence Across NationsPrevalence Across Nations

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No Findings Correlation

5 National IQ National IQ (Lynn, & Vanhanen, 2002, only study-based scores) 

Same, after controlling for GDP per person in 1999 (UN Statistics Division, 2009)

.58**(n = 47) .62**(n = 45)

6 Average national school performance in Average national school performance in mathematics in the 8th grade in 2003mathematics in the 8th grade in 2003 (Mullis, Martin & Foy, 2005) 

Same, after controlling for GDP per person in 1999 (UN Statistics Division, 2009)

.73**(n = 25) .64**(n = 21)

7 Average national school performance in Average national school performance in mathematics in the 8th grade in 2007mathematics in the 8th grade in 2007 (Mullis, Martin & Foy, 2007). 

Same, after controlling for GDP per person in 2005 (UN Statistics Division, 2009)

.64** (n = 24)  

.63** (n = 20)

5-HTTLPR S-Allele 5-HTTLPR S-Allele Prevalence Across NationsPrevalence Across Nations

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No Findings Correlation

8 Confucian work dynamism /Long Confucian work dynamism /Long term orientation term orientation (Chinese Culture Connection, 1987)

.81** (n = 19)

9 Long-term orientation Long-term orientation (Minkov & Hofstede, 2012)

.76** (n = 22)

10 Societal hypometropiaSocietal hypometropia (Minkov, 2011, 2013)  

Same, after controlling for GDP per person in 2005 (UN Statistics Division, 2009) 

Same, after controlling for GINI in 2004-2010 (Central Intelligence Agency, 2012) 

Same after controlling for GDP per person in 2005 and for GINI in 2004-2010 at the same time

-.60** (n = 52) -.62** (n = 49) -.74** (n = 49) 

-.73** (n = 48)

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Leaders’ stylesLeaders’ styles

21

Leadership Contingency theories

Fiedler Contingency Model: Favorability of leadership situation

Hersey & Blanchard’s Situational Theory (Maturity of followers)

Vroom & Yetton: Leader-Participation (Quality and acceptance of leader’s decisions)

House and Dressler: Path-goal theory Leader-Member Exchange Theory

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Leadership Leadership Contingency Contingency theoriestheories

Leader-Participation ModelLeader-Participation Model

Vroom & YettonVroom & Yetton: 5 main management decision styles:

AutocraticAutocratic A.1A.1: Leader solves/makes decisions alone A.2A.2: Leader gets information from subordinates but

makes the decisions alone ConsultativeConsultative

C.1C.1: problem is shared individually with relevant subordinates. Then L makes the decision

C.2C.2: problem is shared with subordinates as a group, then L makes the decision

GroupGroup – the problem is shared with sub as a group. L acts as Chair, not as advocate. All make the decision

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Leaders’ stylesLeaders’ styles

(Goleman, 2000)

‘An array of clubs An array of clubs in a golf pro’s bagin a golf pro’s bag’

Six Leadership StylesSix Leadership Styles‘An array of clubs in a golf pro’s bagAn array of clubs in a golf pro’s bag’ (Goleman, 2000)

StyleStyle In practice In a phrase Competencies

CoerciveCoercive DemandsDemandscompliancecompliance

‘Do what I tell you’ Drive to achieve,self control

AuthoritativeAuthoritative Mobilizes peopleMobilizes people ‘Come with me’ Self-confidence,change catalyst

AffiliativeAffiliative Creates harmonyCreates harmony ‘People come first’ Empathy,communication

DemocraticDemocratic Forges consensusForges consensus ‘What do you think’ Collaboration,teambuilding

PacesettingPacesetting Sets high Sets high standardsstandards

‘Do as I do, now’ Initiative, drive toachieve

CoachingCoaching Develop peopleDevelop people ‘Try this’ Empathy, self-awareness 24

What should we do What should we do in the ‘dynamic in the ‘dynamic

societies’?societies’?

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Teach many and make Teach many and make sure we teach the best sure we teach the best

matchmatch Present different

management models, but make sure we teach that/those which match the cultural specifics. I would speculate that Henri Fayol matches better the Russian culture than HR theories, i.e. Elton Mayo

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27

Will teach and Will teach and apply the best apply the best

model model

Mamma mea! Mamma mea! Which is the Which is the best model?best model?

Who was the Who was the idiot to claim idiot to claim

this is the best this is the best model?model?

Academic exchangeAcademic exchange

Exchange students for 1-2 semesters. Exchange lecturers for 2-4 weeks

teaching Organize video-conferencing seminars

…and the best models will be taught

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29

The new bachelor knows The new bachelor knows the best modelthe best model

After trying to apply the After trying to apply the best modelbest model

30

10x a lot 10x a lot

Blagoev, V. (2010). Culture: Values, Beliefs, Perceptions, Norms and Behaviors, in Going Global: Practical Applications and Recommendations for HR and OD Professionals in the Global Workplace, ed. by Lundby, K.(2010), Jossey-Bass, p.22-40. Blagoev, V. (2014). The New Marketing, Zangador Publishing, VarnaDe Mooij, M. (2010). Global Marketing and Advertising, Understanding Cultural Paradoxes, Sage, p.102.Hofstede, G., Hofstede, G.J. & Minkov, M. (2010). Cultures and Organizations: Software of the Mind, (3rd ed), McGraw-HillInglehart, R. & Welzel, Ch. (2010). "Changing Mass Priorities: The Link Between Modernization and Democracy." Perspectives on Politics, June 2010 (vol 8, No. 2), page 554.

Minkov, M. (2007). What Makes us Different and Similar, Klasika Stil.Minkov, M., Blagoev, V. & Hofstede, G.(2013). The Boundaries of Culture: Do Questions about Societal Norms Reveal Cultural Differences?, Journal of Cross-Cultural Psychology (2013) 44, p.1100

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List of sourcesList of sources

Minkov, M., Blagoev, V. & Bond, M. (in press). Improving the Emerging Field of Cross-Cultural Sociogenetics: The Case of Serotinin, Journal of Cross-Cultural Psychology.

Nooh, M., Shukor, S., Aziz, R., Khairi, K. & Abdullah, M. (2014). Relationship between Religiosity andControversial Products and Offensive Nature of Advertising Appeals, Journal of Marketing Management, June 2014, Vol. 2, No. 2, pp. 113-128.

Sood, J. & Nasu, Y. (1995). Religiosity and nationality: an exploratory study of their effect on consumer behavior in Japan and the United States, Journal of Business Research, 34, 1-9.

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List of sourcesList of sources

WVS factors 2005-2008WVS factors 2005-2008 V198. Claiming government benefits to which you are not

entitled V199. Avoiding a fare on public transport V200. Cheating on taxes if you have a chance V201. Someone accepting a bribe in the course of their duties V202. Homosexuality V203. Prostitution V204. Abortion V205. Divorce V206. Euthanasia: ending the life of the incurably sick V207. Suicide

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