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Cultural and Ethical Differences in China Measured Across the Hofstede Dimensions.
30 November 2014
Abstract
Purpose - This journal investigates the differences between the United States of America and China
across all areas of Hofstedes five cultural dimensions. This journal will analyze the affect Hofstedes
dimensions have on international trade and business in China as well as the United States. This journal
investigates the cross-cultural distances between the two countries. The Journal will also measure
differences and similarities between the U.S. and China in regards to the values on ethical principles.
Design/methodology/approach- This research journal was written in APA format. Majority of references
were peer reviewed articles obtained though free databases accessible through the Mcdermott Library at
the University of Texas at Dallas campus. Research was conducted in order to provide a accurate
comparison between China and the United States.
Findings Through research we discovered cultural tendencies in China have a much higher power
distance than the United States (U.S.). The United States has a significantly greater focus on
individualism than China. China and the United States both have cultural similarities in respects to
masculinity. The U.S. has slightly higher uncertainty avoidance. China has a higher culture of
pragmatism. The U.S. has a much high culture of indulgence. Lastly, China has a very high long-term
orientation while the U.S. has a culture of short-term orientation. We discovered government greatly
influences a countrys value systems by the type of ruling government as well as the culture of set by the
government. During research we learned both countries have a strong view on ethics. However, due to
Chinas higher culture of collectivism, workers in China let their ethical views benefit the corporation as
Research limitations Limitations on the amount of free peer reviewed research studies available
supporting my research topic.
Practical Implications Understanding the differences between countrys cultures, ethics, and values can
influence a persons decision to serve as an expatriate in foreign country. This allows for companies to
determine other countries suitable to conduct business in as well as what nationality expatriate managers
should be to be effective in a particular country they are looking to conduct business in.
Originality/Value We contribute to the literature by providing a comparison between China and the
United States in regards to cultural differences and ethics to determine whether either country could send
an expatriate to either country and positive results.
Cultural and Ethical Differences in China Measured Across the Hofstede Dimensions.
Over the last the fifteen years trade between the United States and China has increased by 500
percent (U.S. Census Bureau, Foreign Trade). The U.S. imports an extraordinary amount of goods from
China, while the U.S. does export some goods to China as well (U.S. Census Bureau, Foreign Trade).
China and the United States both benefit from this trade relationship (U.S. Census Bureau, Foreign
Trade). This year alone, as of the current month, the U.S. has exported 77,585.80 million dollars worth
of goods to China and imported 293,863.10 million dollars worth of goods from China (U.S. Census
Bureau, Foreign Trade). Due to the increased amounts of trade it is important to analyze the countrys
similarities and differences through cultural, ethical, and value systems. This is important because
anytime a person enters a professional relationship it is beneficial to know exacting who you are
conducting business with. In this paper we discuss the similarities and differences between China and
the United states in culture, ethics, and values and the affects those characteristics have on international
trade.
Cross-cultural analysis China and the United States have several differences as well as
similarities. Hofstede defines culture as the collective programming of the mind that distinguishes the
members of one group or category of people from another (Chang 2011). The first dimension they
compare over is power distance. The Hofstede Centre defines power distance extent to which the less
powerful members of institutions and organizations within a country expect and accept that power is
distributed unequally (Hofstede, Geert).
with lower level associates. A Chinese manager would feel they are not receiving the respect they feel
they deserve. Employees under a Chinese expatriate would also feel micromanaged because Chinese
employees have a culture of receiving instructions as to what job role to preform while American
employees have a basic understanding as to what role is already expected of them. American who are
not used to working in this particular culture might take time to adjust to the new working conditions.
China has a power distance index well above the mean and the United States has a power distance index
well below the mean. This means if expatriates from either country were to choose to operate in other
countries they both might still face a degree of culture shock given the differences in the power distance
index.
The next dimension China and the United States are evaluated over is individualism versus
collectivism. This dimensions fundamentally focuses on the degree of interdependence a society
maintains among its members (Hofstede). A country with low individualistic culture is then considered
to be collective and a primarily high in individualistic culture has a low collective culture (Sachau, L., &
Hutchinson, S. 2012). China has a very low culture of individualism making it have a culture of
collectivism (Singer, Millage 2013). This means people in China are more likely to disregard their own
personal needs in order to achieve the goals of a group or organization (Forbes, G. B., Collinsworth, L.
L., Zhao, P., Kohlman, S., & LeClaire, J. 2011). Collectivistic societies have strong connections between
individuals of the group and emphasis on meeting the needs and values of the group over any personal
needs. In an individualistic society, much like that of the United States, people tend to place personal
goals and needs higher than those of the group or organization (Forbes, G. B., Collinsworth, L. L., Zhao,
P., Kohlman, S., & LeClaire, J. 2011). The United States places a much higher value on individualism
rather than other cultural values (Chambers, Hamer, 2012) Individuals of the United States focus seek
acknowledgement of individual performance rather than group as a whole (Mehta 2010). This cultural
ultimately be detrimental to the organization. An expatriate might benefit from having a host country
mentor assisting them in integrating into this new type of culture. This cultural difference could cause
quite the culture shock to an expatriate and if they do not have a mentor from either country the
expatriate would not be able to preform functions to the requirements and efficiency needed by the
organization or firm. Mentors are often a considerably useful tool in increasing productivity in
expatriates who might be struggling with culture shock.
The third cultural dimension of Hofstedes studies is as masculinity. A high score in this
dimension means the society is driven through competition, achievements, and success (Hofstede).
Success in a high masculinity society is measured by the understanding whom the winner or the best in
field is (Hofstede 2005). This is first noticed to occur in school and then follows the individual into the
organizational setting (Hofstede 2005). A society with a low score in masculinity has dominant values
such as caring for others and overall quality of life (Hofstede 2005). In a feminine society success is
measured by quality of life (Hofstede 2005). Admiration is not found in standing out above the rest
(Hofstede 2005). As shown in the image above China and the United States has a very similar culture in
regards to masculinity. United States and China equally express value for competition, achievement, and
success by the means of having a winner in society (Hill 1984). People of both societies have a
relatively strong desire to be the best where more feministic societies desire liking what you do
(Hofstede 1980). This dimension is very limited in regards to peer reviewed articles comparing the
cultures as a whole. Both countries have a masculinity index well above the mean of all countries
combine meaning China and the United States are both in the top percentile of cultures exhibiting
masculinity. Clearly China and the United States have a strong cultural of masculinity because of where
they fall in comparison to the mean of other countries.
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An American expatriate would be more comfortable serving in a country like China because
China has lower uncertainty avoidance than the United States. It could be slightly more difficult for a
Chinese expatriate to serve in the United States because the Chinese are not as comfortable in
unstructured situations. The Chinese are used to operating in more structured environments. We learned
Chinese workers are often given direct instructions on daily duties and job tasks to preform. It would
take a good amount of time for a Chinese expatriate to learn what is expected of them on a daily basis
without out receiving explicit instructions. We also learned the United States has a low power distance
culture which helps Americans feel a greater sense of comfort working in a unstructured environment. If
an American were to serve as an expatriate to China the expatriate would most likely feel micromanaged
because they are not used to receiving instructions on a daily basis, as American employees often know
what is expected of them upon arriving to work. However, both countries have a culture of uncertainty
avoidance well below the mean of other countries. This means, although an expatriate from the United
States might be slightly more comfortable preforming in unstructured environments, expatriates from a
majority of other countries are even more comfortable preforming in the exact same unstructured
environment as the United States and China. For an expatriate of either country to work in different
countries it would be a good idea for the expatriate to gain experience by subjecting themselves to
scenarios in which the associate would need to efficiently preform in an extremely unstructured
environment.
The next dimension of the Hofstede studies in which the United States and China are evaluated
over is the concept of pragmatism. Pragmatism refers to societys need to maintain some connection to
the past while still dealing with the new challenges occurring in the present and the future (Hofstede
2005). The United States and China differ greatly in regards to pragmatism. The US has a pragmatic
index of twenty-six while China has a pragmatic index of eighty-seven. China has not always been one
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Americans. China on the other had has a culture displaying restraint in every day life. China however,
has made progress in becoming slightly more indulgent (Laurent, S., & Lew, W. 1990). Chinese mothers
have become more indulgent in raising their young (Laurent, S., & Lew, W. 1990). This increase will
affect generations to come as the young grows up and places the same emphasis on indulgence as their
parents once did. The United States on the other hand has steadily been an indulgent country. The United
States has been noted for one of the most over indulgent countries, which can be seen in all areas of life,
especially food consumption (Reyes, S. 2000). Americans have difficulties dealing with specific wants
they tend to not show restraint and then indulge in their wants (Thompson, S., 1998). Indulgence in one
cultural difference the US and China will always maintain a significant difference among.
It would take time for American expatriates to adjust to living and working in China because
American culture is does not display the extreme levels of restraint exhibited by the Chinese. It would
also take a good deal of time for Chinese expatriates to adjust living in American because the Chinese
are used to showing restraint while Americans have a culture of not just indulgence but over indulgence.
We have learned already Americans tend to focus more on their own self interest and goals so it makes a
great deal of sense Americans would lack ability to control their desires and impulses. We also learned
the Chinese put the needs, desires, and goals of the company before their own individual needs, desires,
and goals. This shows the magnitude of restraint displayed by the Chinese in their professional life.
The final dimension discussed over the Hofstede studies is the dimension of long-term
orientation versus short-term orientation. Long-term orientation is which expresses emphasis on
perseverance and savings for future betterment (Peng 2013). China has one of the highest long-term
orientation indexes of 118 with the United States having a mere long-term orientation index of 29
(Xiumei, Jinying 2011). It is apparent China would have one of the highest long-term orientation
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him or herself and restraint refers to the ability to control ones wants and desires. If a person is preparing
to better him or herself in the future then that person is exhibiting restraint. The mean for long-term
orientation index across all other countries is 42. This means both countries would still have difficulties
serving has an expatriate in a majority of other countries because the difference between the individual
country index and the mean is relatively great.
Culture is an important part of every country and nation because it establishes the framework for
the country. Since we now know the culture of both countries we can evaluate the countries based off of
ethics and how situations are handled in regards to ethics. Ethics are defined as the second level
reflection of moralities while moralities is defined as the taken for granted stable framework of what is
right or wrong (Chen 2014). Ethics occurs when there is a moral crisis and questions begin to arise
whether an action is deemed just or not (Chen 2014). The Chinese use Confucian doctrine as a basis
justifying ethical behavior (Chen 2014). While China has a largest written account of history in the
world the idea of company is something very new to the Chinese culture only dating back to roughly a
hundred years (Baocheng 2012). Corporate law is a concept even newer to the Chinese culture having a
life of only 30 years (Baocheng 2012). Due to globalization countries are developing a central set of
ethics to be followed across all countries and businesses (Brewer, Leung, & Scott, 2014). The Chinese
and Americans have a very similar set of ethical principles to be followed in conducting business
(Baocheng 2012). The two countries do, however, differ in the priority of those ethical principles
(Baocheng 2012). One of the main ethical priorities of Chinese businesses is to increase the quality of a
product while in the United States the quality is often taken for granted (Baocheng 2012). China has
made great advances in increasing the quality of products offered (Baocheng 2012). Quality in regards
to the preparation of food is one of the greatest improvements made by Chinese businesses (Baocheng
2012). One of the greatest differences between the two countries ethical systems involve the doctrine
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hiring individuals (Baocheng 2012). Understanding Chinese traditions help allow Americans understand
the villager culture (Baocheng 2012).
Ethics is a huge area of business because the world is becoming more and more globalized every
day. Countries increasingly conduct business with new countries. Because new business is arising a
basic understanding of the ethical standards of the countries involved in business is a enormous
necessity. China is often recognized as being slightly corrupt in handling business transaction but has
made great changes in regards to the standards by which business is to be conducted with foreign
countries. China is actively increasing ethical standards through training officials to not accept bribes
(Wu 2011). China has placed great emphasis on aspects such as moral judgment and ethical leadership
(Lin, Huang 2012). If countries have a general principle of ethical standards required to conduct
business then countries do not have to worry about particular threats occurring when working with
different corporations of different nationalities. Understanding the culture behind the ethics allows
countries to analyze whether a particular corporation in another country is a suitable fit to complete
business transactions with. The United States has had strong ethical standards for many years but has
recently begun sloping toward a slightly more unethical culture (Clipson 1990). Religion is becoming
less and less influence in government and business causing the influence of ethics in business
transactions to become less relevant. Ethics is not directly related to religion in the United States but
ethics do take similar moral principles found in religious doctrine. The idea of ethics tends to be rather
subjective and is dependent upon the person involved in the situation. Many subjectivists judge how
moral an action is based off of the gains rather than how morally right an action is (Tansey, 1994).
Analyzing ethical standards is crucial for expatriates to do before even making the transition into
the Chinese style of living and way of life. An American expatriate bases many ethical principles off of
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Research in regards to how specific cultural traits influence the productivity of expatriates is
another interesting trait worth researching. All countries vary across cultural dimensions and can
positively or negatively affect expatriates. Where not every person has the same view on culture the
culture is still exhibited in the roots of a person. The way a person was raised affects the culture to a
great degree. A person can change their views to reflect those of a new country or organization to some
degree but the culture a person was raised on will always have an underlying inclination to draw towards
the values and culture they were raised with. Research would be beneficial because it would allow
international companies the luxury of knowing specifically which country could be a great fit for to seek
expatriate employment.
Another topic for future research is a study on how the cultural differences can influence ethical
standards. Ethics vary from country to country but are they related to culture. While ethics are not
dependent upon specific cultural dimensions culture can affect the way ethics are perceived. Can a
country make changes to its ethical standards without affecting a countrys culture? Culture does affect
ethics but to what degree is it noticeable. China has recently increased the value placed on ethics but the
cultural values of China have changed. How are ethical standards actually affected by culture and does a
change in ethical cause a change in cultural dimensions.
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