Application of Hofstede!s four dimensions of national culture on international construction ventures
Candice Lyn Harris, Spring 2004
Brief:
The international construction industry has experienced immense growth over the past decade. This growth is due to the advancement in technology and the accessibility of many areas of the world. Numerous companies are venturing into foreign markets in an effort to expand their areas of operation. These ventures can prove to be extremely profitable in regions of the world that are experiencing new infrastructures. With the possibility of enormous success, there are also risks associated with the international market. These international companies tend to spend a significant amount of time researching the market and evaluating the associated risks with an international venture. Most companies are well prepared for the change of environment and currency fluctuations. However, venturing into the foreign market results in the intangible risk of cultural differences. Cultural differences are an inevitable factor when conducting international business. These differences can create difficult barriers if one is not careful in the analysis of the affects. Even though a thorough analysis will allow a company to pinpoint the areas of concern, there may not be enough information to thoroughly prepare for those differences. This research examines the theory of culture and its affects on international construction ventures. Through a literature review, the term culture is defined, and then characterized by the most important elements. The theory of construction culture is used to describe the uniqueness of the construction industry. The four dimensions of national culture, developed by Geert Hofstede, are introduced as the framework of this research. These critical dimensions of culture affect the workplace internationally. These critical dimensions are evaluated through interviews with project managers that possess experience in different areas of the world.