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
1. Introduction
1.1. Problem
1.2. Objectives
1.3. Structure
2. Geert Hofstede’s Dimensions of National Culture
2.1. Definition of “culture”
2.2. Power Distance
2.3. Individualism vs. Collectivism
2.4. Critical remark
3. Application by reference to China
3.1. High Power Distance
3.1.1. Confucianism as a Chinese code of practice
3.1.2. The top-down-system in management
3.2. Collectivism
3.2.1. “Guanxi” as a Chinese principle of behavior
3.2.2. Communication in business relation
4. Summary
Objectives and Core Topics
The primary objective of this seminar paper is to demonstrate the fundamental link between intercultural competence and successful international business operations. By analyzing the Chinese market, the work explores how specific cultural dimensions impact organizational structures and communication styles.
- Hofstede’s dimensions of national culture
- The influence of Confucianism on modern Chinese management
- "Guanxi" as a determinant for business relationships
- Intercultural competence as a success factor in international business
- Hierarchical top-down management structures in China
Excerpt from the Book
3.1.2. The top-down-system in management
As a result of the Confucian attitude held by Chinese people, working life is complicated by rather passive behavior of the employees than active participation. The Chinese employees expect instruction made by their boss they can follow instead of acting independently.
Since authority is not explicitly delegated to them, the employees tend to be insecure about deciding anything. “Even the most minor matters may be referred up the chain of command, and the highest-ranking officials may be inundated with minutiae”.
Nevertheless, the Chinese employee feels comfortable in this hierarchical system, since he almost enjoys full satisfaction of his needs. In accordance to Maslow’s hierarchy of needs the wage guaranties his physiological basic needs, whereas social benefits offered by the company ensure his need for safety. Moreover, the workplace in the hierarchical structure satisfies the need of integration/belonging, while the familiar atmosphere offers acceptance by the other members of the company, strengthening his self-esteem. The highest-ranking need for status can also be fulfilled by achieving a specific position in the hierarchy.
Summary of Chapters
1. Introduction: Presents the relevance of cultural awareness in global business and defines the scope of the study.
2. Geert Hofstede’s Dimensions of National Culture: Explains the conceptual framework of mental programming and key dimensions like Power Distance and Collectivism.
3. Application by reference to China: Analyzes how Confucian traditions and "Guanxi" manifest in modern Chinese management and communication.
4. Summary: Concludes that intercultural competence is essential to prevent business failures caused by cultural misunderstandings.
Keywords
Intercultural competence, China, Hofstede, Power Distance, Collectivism, Confucianism, Guanxi, Business management, Communication, Global economy, Mental programming, Hierarchical system, Social relationship, Cultural differences, Corporate culture
Frequently Asked Questions
What is the core focus of this research paper?
The paper examines the intersection of intercultural competence and international business success, specifically within the context of Chinese business practices.
What are the primary cultural themes discussed?
The study focuses on Power Distance, Collectivism, the influence of Confucianism, and the relational principle of "Guanxi".
What is the main objective of the author?
The goal is to demonstrate that understanding the "invisible" parts of culture is a prerequisite for achieving success in international business.
Which scientific framework is utilized?
The author primarily utilizes Geert Hofstede’s "Dimensions of National Culture" and Maslow’s hierarchy of needs to analyze behavior.
What is covered in the main section of the paper?
The main section applies Hofstede’s theories to China, examining the top-down management style and the role of interpersonal relationships in business.
Which keywords characterize this work?
Key terms include Intercultural competence, Guanxi, Confucianism, Power Distance, and Collectivism.
How does Confucianism influence Chinese management?
Confucianism establishes a strict hierarchy that promotes stability, leading to a top-down management style where subordinates expect instructions rather than acting autonomously.
What is the significance of "Guanxi" in this context?
Guanxi refers to the complex system of relationships and mutual obligations that are essential for establishing trust and conducting successful business in China.
- Arbeit zitieren
- Linda Nguyen (Autor:in), 2010, Chinese management and communication principles - Intercultural competence as prerequisite for business success, München, GRIN Verlag, https://www.grin.com/document/183359
