Globalization has caused managers worldwide to contend
with a broad variety of organizational implications. This book is aimed at
executives who acknowledge that forces of globalization shape their business
strategies as well as researchers investigating the effects of this influence
and the ways by which it occurs. It is our purpose to show that cultural forces
draw some countries together while pushing others apart in a way that is
meaningful to business strategies, and especially those related to human resource
management. We slowly build with the reader a complex map of country clusters
that can serve as a guide and compass for investigators and executives who must
navigate the challenges of the globalizing world. Based on organizational
norms, values, and beliefs, our map is particularly useful for managers seeking
to streamline strategic planning, management of human resources, and organizational structures.
Chapter one: Delineating culture
Chapter two: Generating the clustering map
Chapter three: Eco‑cultural and economic correlates
Chapter four: Attitudinal and behavioral dimensions
Chapter five: A cluster by cluster review
CHAPTER ONE: DELINEATING CULTURE
The book opens by describing the roots and logic of
cultural grouping and its role as a vital navigation tool in a global
environment. Pressures towards a “flat world” notwithstanding, the world
remains divided by numerous fault lines, not the least of which is culture.
Scholars as well as experienced executives know that global business activity
takes place somewhere between the two poles of homogeneity and heterogeneity,
which is where “cultural grouping”, or clusters, come in. The origin of
cultural grouping lies in the century old concept of "families of
nations" that was used in political science, sociology, and law and which
at the time stirred a raging debate among prominent social circles of the time.
The concept implies that civilizations and countries are grouped together on
the basis of some similarity, underpinned by antecedents such as language,
religion, history, customs, and institutions, as well as by subjective
self-identification. In business, cultural grouping is vital since culture and
cultural differences have been consistently found to correlate with various
management phenomena such as the process and outcome of cross-border alliances,
mergers, and negotiations, to name but a few.
CHAPTER TWO: GENERATING THE CLUSTERING MAP
Chapter two of the book describes the clustering methodology and the dataset to which we applied it. Selecting the dataset was
no small task, and the specific characteristics of each input study is
described in detail as it bears on the final outcome of our own clustering
endeavor. The synthesized three-layered cultural map we have generated is at
the heart of the proposed book. It is (a) a summary expression of global
cultural variation, (b) an independent aggregate explained by a variety of
predictor variables, and (c) a visual guide displaying variations in
organizational behavior and strategy. As with a geographic atlas, we offer not
only a legend but also a guideline on how to read and interpret the displayed
maps. We present the world in three levels of country clustering, producing 11
Global clusters, 15 Consensus clusters and 38 Local clusters while also
pointing out singletons and additional cluster information. These levels
represent vertical (inter-cluster) cultural evolution and cohesiveness within
each cluster At the same time, the map
also shows cluster adjacency, representing horizontal (intra-cluster)
relationships and cultural proximity. These three rigorously drawn elements –
nesting (multi-level), cohesiveness, and adjacency – are a first in the literature.
CHAPTER THREE: ECO-CULTURAL AND ECONOMIC
CORRELATES
To understand societies, values, beliefs, attitudes,
and behavioral propensities - mainly in the work environment as analyzed - one
may be directed to the major antecedes of a culture in terms of both past
history, geography, and present economic conditions. The clustering map we
offer is based on cultural data gathered in the organizational milieu; it shows
how countries worldwide cluster in that milieu alone. International businesses,
however, do not operate in a void, and for proper understanding of the
clustering map, as well as for any kind of application, it is important to see
cultural antecedents that potentially affect them. Here, we take a longitudinal
look at seven proposed eco-cultural antecedents and correlates, including
geographic location, geographic span (size), distance from the equator, language,
religion, GDP-PPP, and economic freedom. We investigate our clusters in
relation to each of these eco-cultural antecedents and correlates while also
inspecting their combined power in establishing cluster membership and
adjacency. The meaning and importance of each of these correlates is explained,
providing a unique and inclusive outlook on cultural antecedents in relation to
cultural country clusters. Investigating these correlates yields deeper
insights into the underlying formation of cultures.
CHAPTER FOUR: ATTITUDINAL AND BEHAVIORAL DIMENSIONS
To apply content to theory, one must be acquainted with
behavior propensities, beliefs, and attitudes of employees and managers. While
some sixty dimensions are used in the input studies, this chapter outlines the
meaning and implications of select dimensions. We offer the reader a new way to
look at the groupings of these dimension. The first group comprises dimensions
that relate to the focal actor, be it the individual or the group, delineating
values and preferences of the individual vis-à-vis society and other
individuals. The second group includes dimensions that reflect the individual's
embedded position within society and within organizations. It includes
preferences regarding the individual’s role in an organization as well as
preferences, values, and practices relating to gender marking, tolerance for
ambiguity, preferred sources of guidance, and preferences regarding
supervision. The third group of dimensions reflects societal and organizational
orientation vis-à-vis goals, means, and time. It includes values and practices
that illustrate the organization's perspectives of time and performance.
Behavioral implications of high and low scores are discussed, touching upon
various aspects of management and organization behavior, including HRM
practices or organizational norms delineating how employees should be managed.
CHAPTER FIVE: A CLUSTER BY CLUSTER REVIEW
We conclude our book by delineating the character of
each cluster with respect to both correlates and cultural and organizational
dimensions. The current chapter enables the reader to focus on a cluster of
interest or relevance, offering a measure of convenience in having most of the
data pertinent to a given cluster available in one place and in a summary form.
In other words, this chapter serves as a reference tool, an atlas of sorts,
where information pertaining to a particular cultural region and its
constituent members can be conveniently and quickly accessed and utilized.
This chapter also grants us the opportunity to
provide country specific information that goes beyond the correlates described
in an earlier chapter, with the goal of enhancing depth and scope of coverage
without distracting attention from the overall clustering solution and its
common correlates. While the coverage we provide here falls well short of what
is known in the field as emic research, a desirable yet unrealistic objective
in light of the scale and scope of our book, it nevertheless provides glimpses
of intensity and detail that are only possible in a ‘zoom-in’ version.
