1. Introduction
1.1. Problem
Globalization is an ongoing process by which regional economies have become integrated
through a global network of communication and trade, which simultaneously
induces “globalization of culture”.
In an attempt to explain culture more clearly, the “Iceberg Model of Culture” can be
used2 since culture is often compared to an iceberg which has both visible (on the surface)
and invisible (below the surface) parts.
Visible elements of culture – the “percepta”– can be seen, such as food, clothing or laws.
Those elements which are not as obvious –the “concepta” - such as norms, values or beliefs are represented by the much larger
portion of the iceberg underwater.
In a course of increasing cross-cultural business encounters, the question arouses
whether it is necessary to be acquainted with both the visible and the greater invisible
part of the culture concerned – i.e. to possess intercultural competence – in order to gain
international business success.
1.2. Objectives
With reference to Hofstede’s Dimensions of National Culture, this seminar paper has
the intention to verify the close correlation between intercultural competence and international
business success.
In this context, it makes an attempt to visualize the “invisible” part of culture by the
example of China, which gains a steadily increasing importance for the world economic
growth shown by its gross domestic product real growth rate of 8.7 % est. in 20096, thus
attracting more and more companies from all over the world to establish business in
China.
Table of Contents
- Introduction
- Problem
- Objectives
- Structure
- Geert Hofstede's Dimensions of National Culture
- Definition of "culture"
- Power Distance
- Individualism vs. Collectivism
- Critical remark
- Application by reference to China
- High Power Distance
- Confucianism as a Chinese code of practice
- The top-down-system in management
- Collectivism
- “Guanxi” as a Chinese principle of behavior
- Communication in business relation
- High Power Distance
- Summary
Objectives and Key Themes
This seminar paper aims to investigate the strong correlation between intercultural competence and international business success. It utilizes Hofstede's Dimensions of National Culture to explain the importance of understanding both visible and invisible aspects of a culture. The paper focuses on the Chinese culture, highlighting its unique features, particularly its high power distance and collectivistic nature.
- Intercultural competence as a key driver for international business success
- Geert Hofstede's Dimensions of National Culture as a framework for understanding cultural differences
- The role of Confucianism in shaping Chinese management practices and the top-down system
- The concept of "Guanxi" and its influence on communication and business relationships in China
- The importance of recognizing and navigating the invisible aspects of culture for effective cross-cultural business interactions
Chapter Summaries
- Introduction: This chapter introduces the concept of globalization and its impact on cultural interaction. It emphasizes the importance of understanding both the visible and invisible aspects of culture in a globalized business environment. The Iceberg Model of Culture is presented to illustrate this concept.
- Geert Hofstede's Dimensions of National Culture: This section defines culture as "mental programming" and explores two of Hofstede's five dimensions: Power Distance and Individualism vs. Collectivism. Each dimension is discussed in detail, providing a foundational understanding of cultural differences.
- Application by reference to China: This chapter focuses on applying the concepts of high power distance and collectivism to the Chinese culture. It explores how Confucianism influences management practices in China, showcasing the top-down system. The concept of "Guanxi" is discussed in relation to communication and business relationships in China.
Keywords
The key keywords and concepts explored in this seminar paper include: intercultural competence, international business success, Geert Hofstede's Dimensions of National Culture, Power Distance, Individualism vs. Collectivism, Chinese culture, Confucianism, top-down management system, "Guanxi," communication in business relationships.
- Quote paper
- Linda Nguyen (Author), 2010, Chinese management and communication principles - Intercultural competence as prerequisite for business success, Munich, GRIN Verlag, https://www.grin.com/document/183359
