Long- versus Short-Term Orientation in 10 minutes

Geert HofstedeJanuary 2015

Origin of the term “long- versus short-term orientation”

• Coined by Hofstede in 1991 for a fifth dimension of differences between national societies• Based on answers of student samples from 23 societies

around 1985 to the Chinese Value Survey (CVS), developed by Michael H. Bond from suggestions by Chinese scholars• Replicated and extended in 2010 by Michael Minkov based

on 1995-2004 World Values Survey (WVS) data from representative samples of the population in 93 societies

Long/Short Term Orientation as a societal culture dimension

• Long-Term Orientation stands for the fostering in a society of pragmatic virtues oriented to future rewards, in particular perseverance, thrift, and adapting to changing circumstances • Its opposite pole, Short-Term Orientation, stands for the

fostering in a society of virtues related to the past and the present, such as national pride, respect for tradition, preservation of face, and fulfilling social obligations

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Long-Term Oriented societies• Good and evil are relative•Which norms apply depends

on the situation• The superior person adapts to

the circumstances•We should be humble about

ourselves•We want to learn from other

countries• Traditions can be changed• Opposing truths can be

integrated• Common sense and choosing

the middle way

Short-Term Oriented societies• Good and evil are absolute• Fixed norms apply always,

whatever the circumstances• The superior person is always

the same•We seek positive information

about ourselves•We are proud of our own

country• Traditions are sacrosanct• Truth A always excludes its

opposite B• Religious and ideological

fundamentalisms

How are long- and short term orientation measured?

• There is no absolute standard for L/S orientation•What we can measure is differences between societies • The position of societies relative to each other is

expressed in a Long-Term Orientation Index score (LTO)• LTO values have been plotted on a scale from 0 to 100;

scores close to 0 stand for a shorter, scores close to 100 for a longer term orientation

Some Long Term Orientation (LTO) scores, out of 93

High88 Japan87 China83 Germany81 Russia67 Netherlands63 France61 Italy53 Sweden

Low51 Britain51 India38 Israel26 U.S.A.24 Mexico21 Australia13 Nigeria07 Egypt

Some examples of what these LTO scores correlate withLong Term Oriented societies• Secondary school students

perform well at mathematics• Secondary school students

underrate own math results• Large savings quote, funds

available for investment• Companies seek market share,

long-term profits• Investors prefer family

business and real estate• In poor countries, faster

economic growth

Short Term Oriented societies• Secondary school students

perform poorly at mathematics• Secondary school students

overrate own math results• Small savings quote, little

money for investment• Companies report quarterly

results, stress bottom line• Investors prefer shares and

mutual funds• In poor countries, slower

economic growth

Don’t the LTO scores change over time ?

• The scores reflect values transferred from parents to children; these values were already found in 15-year olds; values acquired in childhood rarely change in later life• Research by Sjoerd Beugelsdijk comparing answers to the same

questions by two successive generations 30 years apart showed no worldwide shift and no changes in the position of countries • Global information systems do affect private habits and business

practices, but the way they do so varies between societies according to pre-existing and stable societal values