Download - Exploring Emerging Latin Markets - Implications for Gemans using Spain as a Springboard Country
EXPLORING LATIN AMERICAImplications for German Companies
using Spain as a Springboard Country
Ofiar Murwanti | Rohit Prabhudesai | Ang Boon Chuan | Eka Prawijaya
Agenda
• Introduction to Research Topic
• Cultural Models
• Methodology
• Findings
• Recommendations
Can Spain be a Springboard Countryfor German companies entering Latin America?
?(Koeppen 2012; Pavoncello 2011)
?(Winiecki 2012)
Cultural adaptation issues
(Ewing and Bajaj 2011; Parnell 2002; Rygl 2012; Selmer 2001, Selmer 2005, Zimmermann, Holman and Sparrow 2003)
Eurozone ties
Cultural proximityGrowing influence
Opportunities in Latin America(Long 2013; Molinski 2013)
Need for Springboard Country
(Penny 2013; Pla-Barber and Kamps 2012)
Cultural ModelsDimension Description
Power distance Extent to which individuals are separated by power, authority and prestige
In-group collectivism Extent to which individuals are proud and loyalty towards families, organizations and employers
Institutional collectivism Extent to which individuals are identify and work with groups at the expense of individual freedo
Uncertainty avoidance Extent to which individuals value structures, rules and consistency
Future orientation Extent to which individuals look towards future benefits at the sacrifice of immediate gratifications
Gender egalitarianism Extent to which individuals support gender equality
Assertiveness Extent to which individuals are confident, confrontational and aggressive
Humane orientation Extent to which individuals treat others with fairness, care and kindness
Performance orientation Extent to which individuals value and reward performance
Hofs
tede
Mod
el o
f Nati
onal
Cu
lture
(Hof
sted
e 19
80)
Global Leadership and O
rganizational Behaviour Effectiveness (GLO
BE) Study(Javidan, et al. 2005)
Lewis Model of Cross-Cultural Communication(Lewis 2013)
Multi-Actives
Re-ActivesLinear-Actives
Discourse oriented
Listening oriented
Information oriented
Methodology
13
1
13
1
ii
iii
Latin
n
nPDIPDI
13
1
13
1
ii
iii
Latin
n
nIDVIDV
13
1
13
1
ii
iii
Latin
n
nMASMAS
13
1
13
1
ii
iii
Latin
n
nUAIUAI
Formulae to compute Hofstede dimensions
Country Weighted Total w (x- μ) 2
PDI IDV MAS UAI PDI IDV MAS UAIArgentina South America 40,117,096 49 46 56 86 1,965,737,704 1,845,386,416 2,246,557,376 3,450,070,256 Bolivia South America NA Not available - - - - Brazil South America 201,032,714 69 38 49 76 13,871,257,266 7,639,243,132 9,850,602,986 15,278,486,264 Chile South America 16,634,603 63 23 28 86 1,047,979,989 382,595,869 465,768,884 1,430,575,858 Colombia South America 47,252,000 67 13 64 80 3,165,884,000 614,276,000 3,024,128,000 3,780,160,000 Ecuador South America 15,580,300 78 8 63 67 1,215,263,400 124,642,400 981,558,900 1,043,880,100 Paraguay South America NA Not available - - - - Peru South America 30,475,144 64 16 42 87 1,950,409,216 487,602,304 1,279,956,048 2,651,337,528 Uruguay South America 3,286,314 61 36 38 100 200,465,154 118,307,304 124,879,932 328,631,400 Venezuela South America 28,946,101 81 12 73 76 2,344,634,181 347,353,212 2,113,065,373 2,199,903,676 Cuba Caribbean NA Not available - - - - Dominican Republic Caribbean NA Not available - - - - Haiti Caribbean NA Not available - - - - Honduras Caribbean NA Not available - - - - Puerto Rico Caribbean NA Not available - - - - Costa Rica Central America 4,667,096 35 15 21 86 163,348,360 70,006,440 98,009,016 401,370,256 El Salvador Central America 6,183,000 66 19 40 94 408,078,000 117,477,000 247,320,000 581,202,000 Guatemala Central America 15,438,384 95 6 37 101 1,466,646,480 92,630,304 571,220,208 1,559,276,784 Mexico Central America 118,395,054 81 30 69 82 9,589,999,374 3,551,851,620 8,169,258,726 9,708,394,428 Nicaragua Central America NA Not available - - - - Panama Central America 3,405,813 95 11 44 86 323,552,235 37,463,943 149,855,772 292,899,918
Country Region Population
(Gelman 2007; Kish 1990)
Results
Data Validation
Translate quantities to description
Verify against qualitative descriptors
Generalization
Based on 3 countries with close values in 4 cultural
dimensions
Compare against descriptors in GLOBE
Study and Lewis Model
Descriptions converged across all models
Findings and Analysis
Culture Po
wer
Dist
ance
Indi
vidu
alism
Mas
culin
ity
Unc
erta
inty
Av
oida
nce
Asse
rtive
ness
Hum
ane
Orie
ntati
on
Perf
orm
ance
O
rient
ation
Inte
racti
on S
tyle
German Low High High High High Low High Information oriented
Spanish High Low Low Higher Low High Low Discussion oriented
Latin American Higher Lower Varied High Low High Low Discussion oriented
(Antshel 2002; Cuéllar, Arnold and Gonzalez 1995; Delgado 1994; Gupta, Hanges and Dorfman 2002; Johanson and Vahlne 2009;Lenartowicz and Johnson 2003; Soyez 2012; Varela, Salgado and Lasio 2010)
Legend
Cultural leap
Cultural bridge
Cultural equality
Organization Report Structure
German HQ
Colombia Country Manager
Mexico Country Manager
Spain Country Manager
German HQ
Spain Country Manager
Colombia Country Manager
Mexico Country Manager
Decentralized channel of communicationLatin-centric communication of corporate objectivesBetter local receptivenessEnhanced relational day-to-day liaisonRisk of miscommunication
Staffing StrategyPioneer Intelligence
Trader Defender
Roles of Country Manager
Global integrationBetter communication
Talent and deployment not always available
Intercultural training minimizes expatriate failure(Domsch and Lichtenberger 1991; Osman-Gani and Rockstuhl
2009; Qin and Baruch 2010; Waxin and Panaccio 2005)
Little effect on German expatriates(Puck, Kittler and Wright 2008)
Expatriation
Local responsivenessLower cost
(Reiche 2006)
Customized corporate culture training
(Harvey and Miceli 1999; Henze 2009)
Inpatriation
Management Mindset
Country Manager Fatherly FigureAuthority &
Organizational Control
Social gaps
Limited individual feedback to avoid conflictWorking group communication and dialogue
(Behrens 2010; Martinez 2005)
Soci
al in
tegr
ation
in
colle
ctivi
st a
nd e
galit
aria
n so
ciet
y
Building local association, teamwork, social identity and communitarianism(Höglund and Sundberg 2008; Jarvie 2003; Moss 2009; Perks 2007; Schlüter 2000; Stevenson and Alaug 1997; Tonts 2005)
Cerveza Sports Dance
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