Hofstede 5 Cultural Dimensions
Hofstede’s five cultural dimensions model emerged in the period between 1965- 1990s when Geert Hofstede developed research on a team working for IBM to study various cultural orientation and values. The research focused on understanding how cultural views dictated individual values and attitudes. Initially, the study looked at the four dimensions, which included uncertainty avoidance (UAI), individualism and collectivism (IDV), power distance (PDI), and masculinity versus femininity (MAS) (Robbins et al. 2014). In the 1990s, the dimensions increased to five when Hofstede incorporated long and short-term orientation to the four dimensions.
Fundamentally, several scholars have defined the terms in various ways that revolve around individual behaviour. Mazanec et al. (2015) define uncertainty avoidance as the scale of accepting new ideas and innovation. In the UA index (UAI), people who have the highest score are less inclusive and unwilling to try new ways of undertaking an operation. On the contrary, those who have a low score in the index are inclusive and ready to adopt innovative ways that may be risky.
Consequently, Beugelsdijk, Maseland, and Hoorn (2015) define individualism and collectivism as the character of embracing individual or societal requirements. In individualistic societies, people are more concerned with their own affairs and care for their immediate families, whereas those in collectivist societies care for extended families and undertake acts that generate benefits to the community.
In the words of Hanzlick (2015), power distance index implies the extent to which people accept the distribution of power and their place in the hierarchy of an organization or a society. Entities, which have a higher index, demonstrate a clear set of power and individuals understand their positions in the hierarchy. On the contrary, societies that have low scores question any unequal distribution of power and make it a subject of serious scrutiny. Masculinity is another dimension found in the Hofstede model and refers to the societal allocation of masculine and feminine roles.
In societies deemed to be masculine, success is a derivative of competition and people care less about the welfare of others. However, in places that nurture the feminine culture, individuals arrive at a certain objective through discussions and consensus is all-inclusive. The fifth dimension in Hofstede model is short and long-term orientation. In the explanation provided by Beugelsdijk, Maseland, and Hoorn (2015), the long-term dimension relates to countries where people and entities focus on gains earned over a projected period. The norm is unlike in those places where people and organizations evaluate their gains within a short period.
Assessment
Recommendations for Huawei’s Successful Expansion into Germany
For Huawei to penetrate the German market successfully, it should adopt certain strategies. Some of the recommendations that also serve as strategies useful for the company’s expansion into Germany include the focus on quality, understanding the German culture, and the market. While Chinese buyers associate the quality of a product with its price, Germans do not focus on the price but look at the quality of a product (Daft & Samson 2014).
Therefore, to penetrate the market, the company should ensure that its products are top-notch in relation to quality and price. Consequently, the culture of Germans is quite different from that of the Chinese.
While Chinese buyers take referrals and ideas shared by the community seriously, their counterparts in Germany rarely focus on societal opinions. The little focus accorded to societal opinions emanates from their culture, which is more individualistic as shown by the table in Part B. Another recommendation that is useful in the German market is an understanding of its decentralized nature. According to Beckstein (2015), Coca Cola Company only became successful in Germany after adopting a strategy that matched the needs of clients in all the regions of the country. Fundamentally, utilisation of the three recommendations plays an instrumental role in helping Huawei to expand into Germany successfully.
Reference List
Beckstein, M 2015, The politics of economic life, Routledge, New York.
Beugelsdijk, S, Maseland, R & Hoorn, A 2015, ‘Are scores on Hofstede’s dimensions of national culture stable over time? A cohort analysis’, Global Strategy Journal, vol. 3, no. 1, pp. 223-240.
Daft, R & Samson, D 2014, Fundamentals of management: Asia pacific edition PDF, Cengage Learning Australia, Sydney.
Gremme, M 2015, Comparison of Germany-China on the basis of Geert Hofstede’s dimensions of national culture, GRIN Publishing, Berlin.
Hanzlick, M 2015, Management control systems and cross-cultural research: empirical evidence on performance measurement, performance evaluation and rewards in a cross-cultural comparison, Lohmar Publishers, Berlin.
Kolstad, A & Gjesvik, N 2014, ‘Collectivism, individualism, and pragmatism in China: implications for perceptions of mental health’, Transcultural Psychiatry, vol. 51, no. 2, pp. 264-285.
Mazanec, J, Crotts, J, Gursoy, D & Lu, L 2015, ‘Homogeneity versus heterogeneity of cultural values: an item-response theoretical approach applying Hofstede’s cultural dimensions in a single nation’, Tourism Management, vol. 48, no. 1, pp. 299-304.
Robbins, S, Bergman, R, Stagg, I & Coulter, M 2014, Management VS. Sydney, Pearson Education Australia, Sydney.