Cultural dimensions theories are hypotheses that create a specific framework for communication between different cultures (Carolina, 2019). it is possible to measure this framework and the extent of its impact on the values and behaviors of members of society. The researcher (Geert Hofstede) was the first to address this type of theory, especially since he created a set of determinants in which no one preceded him. These determinants were built on through the theories of: (Fons Trompenaars' perspective, Global Leadership, and Organizational Behavior Effectiveness, SCHWARTZ's perspective of national culture, and Inglehart's perspective of national culture).
In this discussion, I will choose Hofstede's theory, the forerunner in this field.
Hofstede's theory and its relevance to MNC:
According to (Beugelsdijk, Kostova & Roth, 2017), this theory was established by the researcher (Gert Hooftsied) after an extensive study he conducted on IBM employees in fifty countries to develop an effective strategy for dealing with people from different countries and cultures; it was concluded from his research that cultural differences between countries can be measured through five dimensions and the development of indicators to measure them.
Cultural Dimensions Associated with MNC:
According to (Bing, 2004), the cultural dimensions of Hofstede can be divided into:
Power distance index (PDI): It expresses the extent to which a society's culture accepts how power is distributed unequally among its members.
Individualism vs. collectivism (IDV): It expresses the extent to which a society's culture accepts their personal interests over the interest of the company as a whole.
Uncertainty avoidance (UAI) expresses how society's culture accepts ambiguity and does not accept change or ambiguous and incomprehensible decisions.
Masculinity vs. femininity (MAS): It expresses the extent to which the culture of society accepts limiting the attribute of achievement in heroism from the man or whether it accepts qualities such as cooperation and sympathy from women.
Long-term orientation vs. short-term orientation (LTO): It expresses the extent to which society's culture accepts the importance of ambition towards the future, in contrast to society's culture, which is more concerned with stability and respect for recognized traditions.
Indulgence vs. restraint (IND): It expresses the extent to which a society's culture accepts the importance of satisfying its desires in contrast to a conservative society governed by some norms that determine its behavior.
Comparison of countries in the case of Bechtel:
(Bechtel) has implemented the most significant industrial city in the world so far according to the classification (Worldatlas 2021), which is “the industrial city of Jubail” in Saudi Arabia with a value of 20 billion dollars; I have been working as an architect for 12 years near this city, I will make a comparison between American society and Saudi society according to (Hofstede Insights, nd):
| USA | KSA | |
| PDI | Equality, decentralization, and participation in responsibilities and decisions. | Inequality is inherent, centralization is common, and subordinates expect to be told what to do. |
| ADV | The American premise is "freedom and justice for all." This is illustrated by the clear emphasis on equal rights in all aspects of America and government. | The community aspect fosters strong relationships where everyone takes responsibility for fellow members of their group. |
| UAI | The score for masculinity in the United States is high at 62, which can be seen in typical American behavior patterns. This can be explained by the combination of a high masculinity drive with the most individualistic drive in the world. | It is a patriarchal society. In patriarchal countries, “people live to work”; managers must be firm and assertive. |
| MAS | There is a reasonable acceptance of new ideas and innovative products and a willingness to try something new or different. | She prefers to avoid uncertainty. Countries with high uncertainty maintain strict rules of belief and behavior and do not tolerate unconventional behavior and ideas. |
| LTO | Americans tend to analyze new information to check if it is true. | These societies are very interested in establishing the ultimate truth. They are normative in their thinking and show great respect for tradition. |
| IND | Work hard and play hard. | Saudi Arabia's mean score 52 does not indicate a clear preference for tridimensional. |
The effeDimensionture on management in the case of Bechtel:Dimension According to (Smith, 1991), Bechtel operates with different labor policies according to each country in which it operates; the influence of a country's culture is evident in dealing with its members, for example, in the United States, in the field of construction, the worker himself bears the burden of responsibility for his/her work and the implementation of safety instructions. If he/she makes a mistake, he/she will bear the consequences of his/her mistakes. In Saudi Arabia, the person responsible for the workers is directly accountable, not the worker, so companies hire more energetic leaders than successful managers.
Conclusion
Multinational corporations seek to market their products or services globally; they must deal with the culture of the target countries with great caution so as not to misunderstand their marketing or service message and thus fall into a cultural taboo that harms their reputation. To avoid such mistakes, the people of the target country should be involved in the management teams so that they are aware of such mistakes (Interface Training, nd).
References
Beugelsdijk, S., Kostova, T., & Roth, K. (2017). An overview of Hofstede-inspired country-level culture research in international business since 2006. Journal of International Business Studies, 48(1), 30-47. Retrieved from ProQuest One Academic database.
Bing, J. W. (2004). Hofstede's Consequences: The Impact of His Work on Consulting and Business Practices. The Academy of Management Executive (1993-2005), 18(1), 80-87. Retrieved from JSTOR database
Carolina, T. (2019). Dimensions of National Culture – Cross-Cultural Theories. Studies in Business & Economics, 14(3), 220–230
Hofstede Insights (nd). Compare Countries: Retrieved from https://www.hofstede-insights.com/product/compare-countries/
Interface Training (nd). CulturaDimensionon: me or weDimensionile]. Retrieved from https://www.youtube.cDimensionv=CW7aWKXB5J4 (2:55)
Smith, J. C. (1991). Mega-project construction management--the Corps of Engineers and Bechtel Group in Saudi Arabia (Doctoral dissertation, Massachusetts Institute of Technology).
Worldatlas. (2021). The World's Largest Industrial Areas, https://www.worldatlas.com/articles/world-s-largest-industrial-areas.html