Understanding Cross-
Cultural Management
Marie-Joëlle Browaeys & Roger Price
Third Edition
Part 1: Culture and Management
Chapter 3
Business cultures in the Western world
Concept 3.1: European Cultures
Concept 3.2: American and Australasian Cultures
tural and oliti
European cultures
Euroe aims
Europe’s identity never clearly established culturally,
politically or geographically.
Most recent development: creation of the European
Union (EU): common economic, socio-cultural
ntal +alues, e.$
and political bodies.
Council of Europe aims to promote fundamental
values, e.g. human rights.
However, clear cultural differences in Europe still
survive.
The European Union
Figure 3.1: The European Union
Source: The European Commission ©
Western Europe
Greece
Strong influence on Romans
Absorbed Greek culture through Latin language
Collectivist society
Close circle of family and friends.
Western Europe
Latin Europe
Influence of Roman Empire
Highly developed Bureaucracies
‘Rule-bending’ through family and personal
relationships
Nordic Europe
Viking Heritage: self-sufficiency, fairness, egalitarianism
and democracy
Face up to authority, question it and expect to be
consulted
Western Europe
France
French culture is derived from an ancient civilization
composed of a complex mix of Celtic, Greco-Roman,
and Germanic elements.
With the advent of colonialism and global trade,
France absorbed its cultural influences.
France population increased after World War I, due to
migration.
Western Europe
Germanic Europe
Longer term perspective when managing uncertainty
Assertive behavior, explicit communication
Emphasis on results rather than relationships
Great Britain
British culture is influenced by the combined nations'
history
With the consolidation of various settlements and
kingdoms, the area became known as England
Economy success is a result of bureaucratic form of
organization
Eastern Europe
Transition from bureaucratic, centralized economy to
market-oriented economies with more democratic
features
Russia is the largest of the former Soviet Union
republics, but is it a European nation geographically,
politically and socially?
‘Blat’, a Soviet form of social networking, still
flourishes to help cope with uncertainties of new
society
Emergent economies
“Emerging markets are countries which are in a
transition phase from developing to developed
markets due to rapid growth and
industrialization.”
A number of EU members that can be considered as
‘emerging markets’ are:
Poland
Czech Republic
Hungary
Romania
Emergent economies
East and Central Europe
A major influence of The Austro-Hungarian Empire, the
Russian Empire and the Soviet hegemony
Profound effect of post-revolution regimes
Transformation of highly bureaucratic and centralized
economies
Russia, a BRIC country
Russia belongs to the category of European emergent
markets and is classified as one of the BRIC countries, along
with emerging countries from other continent.
Largest of the former Soviet Union republics
‘Blat’ a Soviet form of social networking, still flourishes to
help cope with uncertainties of new society.
Turkey
Turkey straddle the border between Europe and Asia
Candidate for membership of EU, but its right to be a
member disputed:
Turkey seen by some as not being European culturally,
socially or geographically. But what does ‘European
mean’?
Others see Turkey as European through its influential
role in Europe over four centuries
American and Australasian
Culture
United States of America
There are 13 British colonies which become the USA.
Constitutional Convention established a balance of
power and equality principal
Influence of Protestant work ethic on settlers and
immigrants
Values in US business culture: Hard work, competition,
and short-term focus on the bottom line
Focus on shareholder interests and leverage time for
progress
American business culture is characterized by
optimism about the future
United States of America
The 'New' Immigrants:
Shifted immigration patterns: Europe to Latin America and
Asia.
Latin American immigrants: Over 16% of US population.
Concentration of Mexican immigrants: California and Texas.
Ongoing challenges in assimilation for recent immigrants.
Strong cultural ties maintained by Mexican immigrants.
Economic influence: Mexican and Brazilian companies
investing in the US market.
Varied economic outcomes based on assimilation variations.
United States of America
Canada
Canada, originally the territory of the Indians and Inuit
Explored by the French and the British.
French and English are the two official languages of
Canada.
Waves of immigrants – multiculturalism.
Build a single Canadian identity.
Canadian not the same as Americans.
United States of America
Australia and New Zealand
Both countries have Anglo-Saxon foundations: both UK colonies.
Business culture remains Anglo-Saxon in nature, but more
collaborative and with distrust of authority.
Increasing ethnic diversity in both countries, politically and
socially acknowledged.
Australia’s first setters either excluded the country’s original
inhabitants (the Aboriginals) from society or imposed
homogeneity.
New Zealand’s first setters negotiated treaty with original
inhabitants, the Maori. The idea developed of biculturalism (one
nation with two people).
However, patterns of immigration to both countries have
changed. The influx of people from Asia and the Pacific has
United States of America
Latin America
Strong belief in Catholic religion, reflecting importance
of families and distinct male/female roles (values
implanted by immigrants from Iberian peninsula)
Role of ‘patron’: authoritarian behavior expected and
respect shown
Rise of middle classes is causing tension with the
underprivileged (especially the indigenous population)
reducing authoritarian nature of society
Conclusion
This chapter has considered:
Culture clusters in Europe and in other countries
historically linked
Problems regarding the definition of Europe,
particularly with regard to Russia and Turkey
The influence of European business cultures
worldwide, including Australasia and the Americas