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DOI: http://dx.doi.org/10.20534/EJEMS-17-2-45-49
Peleckis Kçstutis, Vilnius Gediminas Technical University, PhD in Management, the Faculty of Business Management
E-mail: [email protected]
Analysis of cultural dimension in international business negotiations
Abstract: Context of the negotiations at the international level is faced with the differences between various cultures: a long-term attitude towards communication, the power placement, the uncertainties avoiding, emotional differences between the negotiating parties and others. These and other differences in cross-cultural dimensions can influence the process ofnegotiations between the representatives ofdifferent cultures in the negotiations.
Keywords: business negotiations, cultural dimension of negotiation, context of international negotiations, the knowledge of the negotiating parties incompatibility.
Context of the negotiations at the international lev- thinking that distinguishes members of one group from
el is faced with the differences between various cultures: a long-term attitude towards communication, the power placement, the uncertainties avoiding, emotional differences between the negotiating parties and others. These and other differences in cross-cultural dimensions can influence the process of negotiations between the representatives of different cultures. May vary understanding of various symbols or actions in different cultures. Impact of negotiation strategies for the final results are significant, therefore, in the preparation phase of negotiations it is necessary to examine the cultural dimensions of the other party. In special literature are observed that for the negotiating team during negotiations with other cultures is needed to adapt. Therefore, it is necessary not only to get acquainted with other's cultural dimensions, but also with the existing differences, which may arise difficulties in communicating. One should also to predict potential cross-cultural conflicts, misunderstandings and the measures to prevent them. Therefore, in the article are analyzed cultural dimensions described in the world literature. In scientific literature can be found a lot of the concepts of culture and they are very different. So in the article will be presented contributions of several authors.
Culture is a set of beliefs and values [9], Hosted By [9] write that culture is the collective programming of
the other in terms of values forms, beliefs, assumptions, expectations, perceptions and behavior. Cultural values are desired practice and cultural practice of people, show people's perception of everything what is being done in their countries [8]. It can be argued that culture is a set of shared attitudes, values, goals, and practices, according to which described institution, organization or group affects all aspects of society and human life [8]. Culture is defined as a constellation of slightly interconnected values, practices and norms, by which are shared related group of people of a certain nation [9]. Culture consists of a set of values and practices that have been developed and maintained from generation to generation [8]. Culture reflects the values and thinking patterns, feelings, emotions, and behavior of identifiable groups. Though many nations have a modern and civilized-developed infrastructure, culture shows how human civilization interacts among each other [9]. That author states that the primary cultural values are transmitted by educational process of children of that culture members, in the process of socialization, education, and religion. There are also secondary factors which influence ethical behavior, they cover the differences in the laws between nations, adopted in human resource management systems, organizational cultures, and professional cultures, and codes of conduct [9].
Cultural values shall determine what do members perceive as important, and the cultural norms specifying what does it mean appropriate or inappropriate behavior [9]. Also, these authors argue that the cultural values and norms have an impact on how does situation is perceived and how are they responding to other people's behavior. Culture is a complex in which there are knowledge, belief, art, moral norms, customs, and skills that are required from the human in the society concerned [9].
It can be argued that there is no common definition of culture concept in the literature. Therefore, this work will treat that culture is a set of behavioral practices and norms, perceptions, beliefs and values, which are imposed to individual by society. Hofstede has identified four dimensions of cultural change. He conducted a study that reviewed the international corporations of 50 countries and three regions (in original report in 1980 he analyzed data from 40 countries, when later in 2001, the countries surveyed increased from 40 to 50, and an additional 14 countries of three regions) [8].
Hofstede's [5] concept of cultural classification is based on the idea of individual's mind programming. An individual in the process of socialization from the surrounding environment gets models which act his thinking, feelings and behavior. If an individual child or young person receives certain values and attitudes, he is considered as a „culture bearer" [8]. Values are key components of the mind programs and are the basis of culture. So Hofstede [5] have defined the culture as „the collective programming of the mind which separates the members of one group from another".
Culture is a system of collective behavior, which is determined by values. These cultural values determine how the individual or a social group are responding to the current environment. Hofstede proposed the paradigm [5], which identified five problems of cultural dimensions (the facing every culture, and solves them in their own way), according to which separate cultures can be described and compared.
Power distance - is associated with request or non request of inequality in society, as well as with dependence and interdependence levels. This dimension shows how many people recognize that over their management hierarchy are those within power. In cultures with a higher power dimension, managers and subordinates keep each other unequal. Therefore they do not worry and take it as unavoidability, with which is a need to be reconciled. Here the government is centralized, and are experts from the subordinates to carry out orders. Lower power distance cultures, managers and subordi-
nates are treated more equal and there are no such strict boundaries separating them.
Uncertainty avoidance dimension expresses ambiguity, lack of tolerance and the need for formal rules. It shows the extent to which people in a given society feel vague threat situations and tries to avoid them. In high uncertainty avoidance countries with a low uncertainty avoidance, various rules and procedures are emphasized less because it is more reliance on common sense and generalizations.
Individualism - collectivism dimension indicates the extent to which individual interests have priority above the group interests. In countries where is strong individualism or weak collectivism, the individual and the family are emphasized. Here the priority is given to respect for the person and individualism of the family, or in a strong collectivism, collectivity is appreciated because personal identity is based on membership in a group. Individualism and collectivism — these views expresses two poles: a tendency more quickly to meet the personal needs (individualism), or to see the interests of the group (collectivism).
Masculinity - femininity dimension describes what society tends to emphasize: persistence and a performance targets (eg, wages and promotion), or care, and personal goals (eg, friendly atmosphere, good relationships with managers and other staff). For this reason, feminine society better adjusts to gender differences than masculine society.
Long-term-short-term orientation dimension defines how quickly members of the public expect results. Long-term orientation provides performance-oriented rewards in the future, it encourages perseverance and frugality. Provides a short-term orientation to the past and present times related properties namely the promotion of respect for the traditions and social obligations.
House and others [8] conducted a ten-year research program known as GLOBE, in order to examine culture through values and practices. They presented nine cultural dimensions with explanations:
- Power distance. To what extent do members of the public expect that power is distributed equally. It shows what part ofthe Community. Maintain inequality among its members, individuals and groups stratification of power, authorities, prestige, status, wealth and tangible assets [3; 4].
- Uncertainty avoidance. To what extent do members of the public based on social norms, rules and procedures in order to reduce the uncertainty of future events. This dimension reflects the people's actions to avoid obscure situations, norms, values and beliefs, which are defined in the rules, laws, regulation.
Table 1. - Comparison of cultural dimensions (prepared by the author)
NO » ON t> oo 9 1
o S3 Tt- 0 ON NO S o ctioe oo oo 9 1
Hofstede and others (20 K oo 20 1
ON ON K 13 s « K Tsang (2011) Chow and others (199 S o g tu "Ô 3 s <u s 3 O X Javidan & House, 2001 Ashkanasy et al, 2004 Gelfand et al, 2004 Heales et al. 2004 Javidan 2004 Emrich et al. 2004 den Hartog, 2004 Schwartz (2006, 1992 s o « in ive ^ d n a s le le k n HH Triandis (1995) en n o U lar 3 e s e in 9 Clark (1990) Trompenaars (1997) le * o H d n a n a amf f r o Q Smith et al. (1996) Keillor and Hult (1999 Steenkamp (2001)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Power Distance
Masculinity-Femininity
Uncertainty Avoidance
Individualism — Collectivism
Long-Term- Short-Term
Orientation
Confucian Dynamism
Low And High Context
Negotiations
Integration- Attitude Towards
Work
Integration - Approaches To People
Moral Discipline
Status And Relationships
Moderation
Face
Orientation To The Future
Institutional Collectivism
Group Collectivism
Humane Orientation
Activity Orientation
Gender Equality
Assertiveness
D omination/Harmony
Autonomy/Anchoring
Egalitarianism/Hierarchy
Term Of Personality
Relations With The Government
The Main Problems And Conflicts
Sincerity Of The People
Integration
People's Concerns
Relations With The Government
The Ratio Of Risk
Neutrality/Emotionality
Universalism
/ Particularism Individualism
/ Omunitarianizm
Attitude To Time
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
The Specific/Diffuse Achievement/Assignment Attitude To The Environment
Paternalism
Loyal Involvement / Utilitarian Involvement
Conservatism /Egalitarianism National Heritage/Cultural Homogeneity /Belief System/
Consumer Ethnocentrism
Skill/Good Training
Fast And Slow Information
Territoriality
Personal Space
Mono Chronic And Poly Chronic Time
- Focus on the future. This dimension shows how many people are involved into future-oriented behavior when delaying to meet the current needs but there are projects and investigation into the future. It reflects the degree to which the community is paying a higher priority to long-term efficiency, and is targeted for capacity strong and wishes deal with future uncertainties and to formulate future goals and to achieve their implementation, to develop strategies which could meet future aspirations [8].
- The institutional collectivism. This dimension reflects the degree that reflects the organizational and public institutional practices to encourage and evaluate the collective distribution of resources and collective action. It shows how many people in the community are integrated into a cohesive group, how much the group goals have priority over the individual goals, how much people point the relationship with the group, and how much a person can engage in group activities and make larger or smaller differences between the group members and people who are not in the group [8].
- Group collectivism. This indicator reflects the extent to which a lot of people feel the pride of fidelity and consistency in their organizations and families. It reflects the degree to which attention is paid to the family and the pride of dependence and devotion to (loyalty) organization [8].
- Orientation to humanity.
It is a measure of the degree, which evaluates how strong teams, encourage and reward individuals for being fair, altruistic, generous, caring and good to others [8].
It reflects how people are tolerant to errors [8], friendly, sensitive, and the harmony [8].
- Performance orientation. It shows how groups promotes and rewards group members for performance improvement and competencies. This reflects how much society encourages its members for innovation, quality and productivity improvement [8].
- Gender equality. This indicator shows how groups seek to reduce gender inequality. It reflects the extent to which society seeks to reduce the differences between women's and men's roles in the home, in organizations and communities [8].
- Assertiveness. This indicator shows how much individuals are assertive, conflict and aggressive in relationships with others. This reflects the degree which describes how individuals in society are stubborn, tough, dominant and aggressive in social relationships [8].
Below in Figure 1 give 22 in scientific sources 47 mentioned intercultural dimensions. Unfortunately, not all in the literature mentioned dimensions are empirically tested, for example in sufficient detail as Hofstede's cultural dimensions.
In the preparation of the international business negotiation strategies it is important to understand the influence of different cultures and the impact on the negotiation communication. In strategy it is necessary to provide for a variety of possible cross-cultural misunderstandings/incompatibility avoidance techniques. Therefore, it is important to know and understand both the own and of the other party the most important elements of cultural differences. The next section will examine impact of culture on negotiations.
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Improvement of socio-entrepreneurial corporations as an effective instrument of innovative development in Kazakhstan regions
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DOI: http://dx.doi.org/10.20534/EJEMS-17-2-49-52
Dzhulaeva Almazhan Mudarisovna, Ph. D. in Economics E-mail: [email protected] Sokira Tatyana Sergeevna, Ph. D. in Economics, E-mail: [email protected] Akhmetkaliyeva Sandygul Kusmanovna, Ph. D. in Technics, E-mail: [email protected] Kazakh national university after al-Farabi, Almaty, Kazakhstan
Improvement of socio-entrepreneurial corporations as an effective instrument of innovative development in Kazakhstan regions
Abstract: This article examines the cluster development of regions in Kazakhstan, by improving the activities of the newly created business structures — social and entrepreneurial corporations (SPK). The mission of the SEC is defined, which is to promote the socio-economic development of the region on the principles of partnership between the state and business.
Keywords: social-entrepreneurial corporation, cluster, partnership, innovative development, state, business.
The urgent task of the modern economy of Kazakh- essary condition for the solution of this problem is a stan is its transition to innovative development. A nec- regional approach, when the national economy is seen
