Hofstede’s Cultural Dimensions (DP IB Business Management): Revision Note

Power Distance is defined as the extent to which the less powerful members of institutions and organisations within a country expect and accept that power is distributed unequally

Low-scoring countries include Australia, the USA and Finland

High-scoring countries include Mexico, Russia and Philippines

The degree of interdependence a society maintains among its members

• In Individualist societies people are supposed to look after themselves and their direct family only

• In Collectivist societies people belong to 'in groups' that take care of them in exchange for loyalty

Low-scoring (collectivist) countries include China, Pakistan and Malaysia

High-scoring (individualist) countries include the UK, South Africa and Italy

A high score (Decisive) on this dimension indicates that the society will be driven by competition, achievement and success

A low score (Consensus-oriented) on the dimension means that the dominant values in society are caring for others and quality of life

Low-scoring countries include Norway, Portugal and Chile

High-scoring countries include Germany, Japan and Australia

The extent to which a society tolerates or avoids uncertainty and ambiguity

• The extent to people feel threatened by unknown situations and have created beliefs and institutions that try to avoid these are reflected in this score

Low-scoring (tolerant) countries include Sweden, Tunisia and Namibia

High-scoring (avoiding) countries include Spain, Turkey and Ecuador

The extent to which society has to maintain some links with its own past while dealing with the challenges of the present and future

• Low score countries prefer to maintain traditions and norms

• Those with high scores encourage modern education as a way to prepare for the future

Low-scoring (long-term) countries include Ukraine, Latvia and Norway

High-scoring (short-term) countries include Venezuela, Morocco and Saudi Arabia

The extent to which people try to control their desires and impulses based on the way they were raised

These are defined as restrained and indulgent societies

Low-scoring (restrained) countries include Poland, Indonesia and Estonia

High-scoring (indulgent) countries include Argentina, Ireland and New Zealand

In low power countries, AirBnB considers the needs of a broad range of people whose focus is on elements of a product that make their tasks easier

In high power countries, AirBnB focuses on meeting the needs of key decision makers by emphasising their products benefit the whole family or company and how products can make their leadership a success

In Australia AirBnB's promotional activities focus on the convenience and ease of booking/paying for stays in properties

Mexican promotional activity focuses on financial returns for property owners and possible cost savings for users of the platform

In countries with high individualism AirBnB's recruitment and selection processes emphasise the personal success that recruits could achieve by working within the business

In low individualism countries, AirBnB emphasises the social and collective aspects of working for the business 

Advertisements for senior roles in AirBnB's London office emphasise the performance-related pay and bonus rewards the business offers

Host recruitment policies in Malaysia emphasise the wealth that groups of AirBnB properties in areas that lack hotels can generate for communities

In decisive societies, AirBnB has set challenging targets for growth into new markets

AirBnB's approach in consensus-oriented societies' is less target-driven, emphasising quality and the minimisation of negative impacts of short-term lets on populations

In the US AirBnB has established regional sales headquarters in major cities which operate independently and compete to attract large volumes of hosts and bookings

In Norway AirBnB has developed its Airbnb Plus and Beyond by Airbnb schemes which focus on encouraging hosts to offer high-quality, premium priced properties

In countries with high tolerance to uncertainty, the AirBnB market tests many of its new services and encourage hosts to make more unusual properties available to rent

In countries with low tolerance to uncertainty, the range of properties available for rent is relative narrow and standardised

In Sweden AirBnB lettings include a former military hut, a lighthouse and several treehouses!

In Spain all AirBnB hosts are encouraged to provide standard facilities in their properties such as a private entrance

In long-term outlook countries, AirBnB may emphasise its commitment to social responsibility by encouraging its hosts to adopt environmentally friendly practices in its properties

In short-term outlook countries, AirBnB's focus is more profit- or sales-focused 

In Latvia AirBnB hosts receive extensive guidance and practical support on achieving carbon neutral status for their rental properties

In Chile the availability of low-cost housing has significantly worsened since AirBnB's successful marketing campaigns to recruit hosts in major cities

In restrained societies, products may be designed to appeal on the basis of logic, common sense or good value

In indulgent societies, AirBnB encourages its hosts to offer aspirational properties that appeal to people's desire to 'treat themselves'

Polish citizens take fewer holidays than their European counterparts - AirBnB's properties in Poland tend to be large and are aimed at longer family stays 

In New Zealand AirBnB has a growing selection of very short-term, super-luxury 'experience' properties

Structured framework makes comparison easy 

• It is a structured framework for understanding and comparing cultures, which improves awareness

Generalisation

• Culture is complex and dynamic - reducing it to a set of dimensions can reinforce stereotypes

Credible model

• Research into the model involved thousands of respondents from different countries 

Lack of nuance

• It treats a country as if all its people share the same characteristics - this is often not the case, especially in very large countries such as the US

Clear and simple

• The small number of dimensions makes the model  accessible and easy to apply

Ethnocentrism

• Hofstede's model is rooted in Western cultural values so may not capture the true nature of non-Western cultures

Practical application

• Understanding cultural dimensions can help with adapting strategies and communication so they are effective in different countries

Changes over time

• Cultures shift due to various factors, including globalisation and generational shifts