As the business world is becoming increasingly global, cultures of the world interconnect and hence cultural barriers present new challenges and opportunities. In the field of international business research cross-cultural analysis continuously gains in importance.
Hofstede’s systematic study on cross-national cultures in the 1980s is considered one of the most influential contributions to cross-cultural research. Capturing several of Hofstede’s cultural dimensions, the project Global Leadership and Organizational Behavior Effectiveness (GLOBE) presents a more up-to-date research program dealing with the effects of cultures on organizational processes. Project GLOBE offers additional insights into the relationship between cultural distance and expatriate adjustment by introducing the dimensions Performance Orientation, Humane Orientation and Assertiveness.
The GLOBE authors House et al. (2004) performed a large-scale cross-cultural study in 62 societies across the world during the 1990s. The methodological approach included a survey of approximately 17,000 middle managers. The results were published and edited by House et al. in 2004. The most salient finding was that there exist nine cultural dimensions. Moreover, the authors subdivided each of the dimensions into 2 facets: society as it is and society as it should be, meaning a description of some prevalent practices and personality traits in the society and a concept of an ideal society, according to the respondent.
Table of Content
1. Introduction
2. Expatriation
3. Culture
3.1 Definition
3.2 GLOBE Culture Construct
4. Cultural Dimensions
4.1 Conceptual Elaboration
4.2 Cultural Distance
4.3 Direction of Assignment
4.3.1 Analysis of Cultural Dimensions
4.3.2 Evaluation of Reciprocal Transfers
4.4 Discussion
5. Conclusion
Research Objectives and Core Themes
This paper investigates the significance of cultural distance in the context of international expatriation, utilizing the GLOBE cultural framework to analyze how cultural differences between home and host countries impact expatriate adjustment. The research specifically evaluates the Asymmetry Hypothesis, questioning whether the direction of an assignment—from a high-scoring to a low-scoring culture or vice versa—results in different levels of adjustment success.
- The influence of national cultural dimensions on organizational practices.
- Comparative analysis of the Cultural Distance Hypothesis versus the Cultural Distance Paradox.
- Evaluation of reciprocal transfer scenarios using GLOBE cultural dimension metrics.
- Validation of GLOBE dimensions through nomological networks and empirical research.
- Strategic implications for multinational enterprises regarding expatriate preparation and support.
Excerpt from the Book
Cultural Distance Paradox
The Cultural Distance Paradox is the counter-intuitive assertion that greater differences between home and host cultures are associated with more desirable outcomes. According to this, initial expansion in culturally proximate markets might not always be the most fruitful strategy. (O’Grady and Lane, 1996) This is explained by the fact that assumptions of similarity can impede companies and managers from learning about cultural differences. The aggregated sense of confidence hinders firms from preparing for the new host environment and results in a disadvantage vis-à-vis competitors from more culturally distant parent locations. This state may be exacerbated by strong self-reference criteria, implying that expatriates perceive their own culture as “normal” and proceed from this vantage point. Such ethnocentric tendencies further inflate organizational confidence and dissuade firms from preparing their expatriates with prior cross-cultural trainings. Generally, firms are more conscious of cultural gaps when they are clearly pronounced. Furthermore, entrants with a similar cultural background may receive less assistance and are treated with less patience than their counterpart from more dissimilar cultures. To conclude, the Cultural Distance Paradox implies a positive relationship between cultural distance and expatriate adjustment and performance. (Hemmasi and Downes, 2013)
Summary of Chapters
1. Introduction: This chapter introduces the growing importance of cross-cultural analysis in international business and establishes the GLOBE project as the primary research framework.
2. Expatriation: This section identifies the strategic function of expatriates within multinational enterprises and emphasizes the necessity of international competency and cultural empathy for successful assignments.
3. Culture: This chapter provides fundamental definitions of culture and details the nine cultural dimensions developed by the GLOBE research program.
4. Cultural Dimensions: This core chapter analyzes how cultural dimensions influence organizational behavior, investigates the concept of cultural distance, and tests the Asymmetry Hypothesis regarding assignment direction.
5. Conclusion: The final chapter summarizes the findings, confirming the importance of anticipating cultural differences and noting the empirical support for the Asymmetry Hypothesis in expatriate adjustment.
Keywords
Expatriation, Cultural Distance, GLOBE Project, Cultural Dimensions, International Management, Asymmetry Hypothesis, Cultural Distance Paradox, Performance Orientation, Humane Orientation, Organizational Behavior, Cross-Cultural Adjustment, Global Leadership, Nomological Network, Reciprocal Transfers.
Frequently Asked Questions
What is the core focus of this research paper?
The paper focuses on the impact of cultural distance on the adjustment of expatriates working abroad, specifically analyzing how different cultural dimensions, as defined by the GLOBE project, affect professional success and adaptation.
Which cultural framework is central to this study?
The study relies on the GLOBE (Global Leadership and Organizational Behavior Effectiveness) research program, utilizing its 18 cultural dimensions to analyze societal and organizational practices.
What is the primary research question?
The paper investigates whether the impact of cultural distance on expatriate adjustment is contingent on the direction of the assignment (Transfer HL vs. Transfer LH), testing the validity of the Asymmetry Hypothesis.
What methodology is employed to analyze the cultural dimensions?
The author uses a conceptual approach to evaluate reciprocal transfers, assigning scores to indicate whether a shift between two cultures is likely to be problematic or advantageous for an expatriate.
What does the main body of the paper cover?
The main body examines Power Distance, Uncertainty Avoidance, Humane Orientation, Collectivism, Assertiveness, Gender Egalitarianism, Future Orientation, and Performance Orientation, while also discussing the validation of GLOBE metrics via nomological networks.
How are the key terms defining this research?
The research is characterized by terms such as expatriation, cultural distance, GLOBE project, and the Asymmetry Hypothesis, which together describe the relationship between culture and international human resource management.
What is the difference between the Cultural Distance Hypothesis and the Cultural Distance Paradox?
The Cultural Distance Hypothesis posits that greater differences between cultures lead to poorer adjustment, whereas the Cultural Distance Paradox suggests that larger differences can actually lead to better outcomes by preventing false assumptions of similarity.
What does the term "Transfer HL" signify in this analysis?
Transfer HL refers to a scenario where a specific cultural dimension is highly established in the expatriate's home country but is scarce in the host country (moving from high to low).
What is the main takeaway regarding the Asymmetry Hypothesis?
The research finds that the impact of cultural distance is not symmetrical, meaning that moving from A to B is not the same as moving from B to A, thus supporting the Asymmetry Hypothesis.
Why are the findings described as tentative?
The author labels the findings as tentative because the field of cross-cultural research is still evolving, and the study is exploratory in nature, requiring further rigorous replications with larger samples.
- Arbeit zitieren
- Nina Schwenniger (Autor:in), 2015, Cultural Distance and its Impact on Expatriation, München, GRIN Verlag, https://www.grin.com/document/300639
