Journal of Public Affairs

J. Public Affairs 8: 261–280 (2008)

Published online in Wiley InterScience
(www.interscience.wiley.com) DOI: 10.1002/pa.290

Cultural theory in use: the

intersection of structure, process and
communication in business practice
Camille P. Schuster 1*, y and Michael J. Copeland 2z
1
College of Business Administration, California State University San Marcos, USA
2
Proctor & Gamble, Cincinnati, Ohio, USA

Examining and understanding the culture of 200þ countries to determine how business
is conducted in those countries is a daunting and overwhelming prospect. By combining
theories of culture, it is possible to create a Classification Of Cultures Model using Time,
Task and Relationship concepts. However, this model does not suggest how to adapt when
conducting business in a particular political/economic environment. Continua of cul-
tural elements related to conducting business are created based upon structural elements,
process elements and communication elements. Combining the continua with the
Classification of Cultures Model creates the Global Business Process Model. This frame-
work is a way to capture the array of cultures, identify similarities and differences in
business practices, and provide a starting point for creating adaptive strategies and
behaviours.
Copyright # 2008 John Wiley & Sons, Ltd.

Introduction As a concept, ‘culture’ has been a topic of

Culture is a total way of life held in
common by a group of people. Learned
similarities in speech, behavior, ideology,
livelihood, technology, value system and
society bind people together in a culture. It
involves a communication system of
acquired beliefs, perceptions and attitudes
that serves to supplement and channel
instinctive or inborn behaviour (Jordan
and Rowntree, 1986).
*Correspondence to: Dr Camille P. Schuster, College of
Business Administration, MH 355, California State Uni-
versity San Marcos, San Marcos, CA 92096, USA.
E-mail: schuster@csusm.edu
y
Professor of Marketing.
z
Human Resources Manager (retired).
interest in sociology, anthropology, ethnogra-
phy, psychology, communication and edu-
cation. Investigations of culture are multi-
faceted leading to many different definitions,
areas of study and theories. Each discipline
examines culture from its particular perspect-
ive: how groups function, how the culture
functions, how to learn about cultures, how
people within a cultural group think, the
relationship between culture and communi-
cation style and how people in a particular
culture learn.
Just a few years ago, ‘cultural pioneers’ were
the only people responsible for knowing
and acting appropriately in another country.
With today’s communication vehicles, suppli-
ers, account representatives, order processors,

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DOI: 10.1002/pa
262
contact centre employees or purchasing depart-
ment employees may be working in another
country, so every interaction has potential
cultural connotations. Business practices are
embedded within a culture, so learning cultures,
monitoring changes in culture and understand-
ing the impact of culture on business practices is
important for success (Yip, 1995; Kanungo,
2006). Every employee who interacts across
borders needs to be culturally aware and adept
at adjusting personal style as appropriate to the
situation. Remembering, retrieving and applying
each individual piece of information from every
cultural group around the world are not feasible
or practical techniques in a dynamic business
situation. Success, however, depends on being
able to modify the home country approach to
business practices in international locations.
In any given culture, government policies,
legal systems and/or the use of hierarchy for
decision-making create the structure within
which business functions. How activities flow,
adherence to norms of punctuality and the
integration of one’s public life with business
activities create the process of how things
happen. The role of truth, use of words, style of
language and forms of logic create expec-
tations for the role of communication in
business activities.
The purpose of this paper is to establish a
cultural model that creates a theoretical
perspective for understanding the intersection
between general concepts of culture, including
the structure of public affairs, the process of
conducting business and appropriate forms
of communication, as they apply to the practice
of business. The first section of the paper will
address theories of culture commonly used in
the marketing literature. The second section
will present new models. The third section will
address the intersection between the models
and provide examples of adaptation.
Theories of culture
U.S. anthropologist Edward T. Hall distin-
guished cultures on a continuum of high-
and low-context communications (Hall, 1976).
The low-context cultures using explicit
Copyright # 2008 John Wiley & Sons, Ltd.
Camille P. Schuster and Michael J. Copeland
languages are the Swiss, German, Scandinavian
and North American. An explicit language,
according to Hall (1976), is one in which
words have specific meanings. Context plays a
small role in ascertaining the meaning of what
is said because meaning is specifically related
to the words being used. The cultures in the
middle of the continuum are French, English
and Italian. The high-context cultures using
implicit languages are Spanish, Latin American,
Arabian and Japanese. An implicit language,
according to Hall (1976), is one in which
words have many meanings depending upon
the relationship of the people and companies
involved in the conversation, the topic and the
context. Words are ambiguous and have many
meanings. For example the Japanese word
‘sumimasen’ means ‘please’, ‘thank you’, ‘I’m
sorry’ or ‘excuse me’, depending upon the
situation. This concept of explicit and implicit
languages is an important and useful con-
tinuum used in many contexts. However,
Hall’s (1976) work excludes the languages of
a number of emerging countries that are now
strong players in the global economy such as
Russia, India, China, Indonesia, Ghana, Nigeria,
Hungary, Czech Republic or Estonia. While the
high/low-context concept is significant, the
absence of countries and languages important
in today’s marketplace is not helpful for
guiding adaptation in many current business
situations.
Hall (1959, 1983) also identified a number of
cultural constructs related to time. Monochro-
nic time views time as sequential or linear;
western cultures are identified as monochro-
nic. Western cultures structure time around
tasks and view time as money in business
situations. This orientation is consistent with a
belief by western countries that governmental,
political and legal systems, processes and
policies provide the structure for completing
tasks efficiently. Polychronic time views time
as simultaneous with several events happening
at the same time and is associated with
those cultures that are less task oriented and
more relationship oriented. Eastern and Latin
American cultures have a more flexible view of
time, believe that family and relationship
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Cultural theory in use
activities are an equally valid use of time and
complete tasks when time permits, but not at
the expense of personal or familial require-
ments. Asian and Middle Eastern countries
view relationships as the gateway for doing
business so maintaining relationships is more
important than completing a task.
Hofstede (1980) began his work by studying
the values of people who worked for IBM
in over 50 countries and identified four
dimensions of culture: power distance, collecti-
vism versus individualism, femininity versus
masculinity and uncertainty avoidance. The
research results identify a score for each country
on each dimension. Knowing the relative
position of each country on each dimension
reveals similarities and differences among
countries. When examining similarities and
differences across countries, it is relatively easy
to determine how one country scores on all five
dimensions compared to your home country.
These concepts have formed the basis of
much empirical work, some of which supports
the use of these concepts and some of which
does not (Hoppe, 1990; Smith, 1994; Akour
et al., 2006; DeJong et al., 2006; Harzing, 2006;
Lee and Croker, 2006; Srite and Karahanna,
2006; Guss and Wiley, 2007; Johnson, 2007;
MacNab et al., 2007). One major work addres-
sing the challenge of integrating concepts and
countries (deMooij, 2005) applied the concepts
across countries in an analysis of how the
concepts are portrayed in advertising.
The results of Trompenaars’ (1998) studies
have many similarities with the research results
of Hofstede (1980, 1983, 1997) in that the
approach is to examine and compare countries
on individual values. Comparing many
countries on one value is relatively straightfor-
ward. Comparing more than two countries
on many values is difficult. The insights are
valuable but application of the model is
difficult for businesspeople who generally
find themselves both short of time and asked
to make comparisons and decisions about
groups of countries within a close deadline.
Usunier’s (1996) book specifically addresses
applications in marketing: consumer beha-
viour, market research, marketing strategy,
Copyright # 2008 John Wiley & Sons, Ltd.
263
defining market clusters, product policy, brand
image, price policy, distribution channels,
communication, advertising, personal selling
and negotiations. In this book, concepts of
culture, such as time, face, need for precise
answers or loyalty, are examined and related to
marketing decisions. The breadth and depth of
the material in this book is excellent and an
important tool for thinking about how culture
affects marketing decisions. However, as with
Hofstede’s and Trompenaar’s work, there is no
unifying model for understanding how to use
multiple concepts across several countries to
create marketing strategies.
The Cultural Orientations Model created by
Walker et al. (2003) is a ‘framework for
exploring and mapping the components of
culture at any level’. The 10 dimensions in this
model include those that provide a basic
shared orientation for behaviour at any level
in social life. Using these dimensions to
explore a culture is an excellent basis for
understanding many levels of social behaviour.
The book provides an in-depth examination of
each dimension and how it applies to cultural
analysis. However, that is a level of detail that
businesspeople are not likely to use when they
have a very limited time to prepare for a trip
abroad, which may include more than a single
country or culture and meetings with partici-
pants from a variety of locations at the same
time.
The theories and models created by these
giants in the field focus on specific elements of
culture such as time, language, values, space
or competitiveness. They do not specifically
address the interdependence of concepts within
and across countries applied to the conduct of
business. The next section presents a model that
creates a visual tool representing the interplay
between public structure, process and com-
munication related to business practices.
Cultural models, public structure
and business practice
Commercial, political and economic systems
have become increasingly interdependent over
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264
the past three decades. Political and economic
systems are part of the public structure that
interacts with personal and organizational
culture to impact business practice in a
particular geography. All parts of an organiz-
ation now routinely operate across multiple
time zones and cultures. Since not every
employee is a student of culture, and many
still do not accept that culture has any
relevance to their objectives, a model that
represents the application of cultural con-
structs in business situations would be a useful
tool to orient and guide planning, decision-
making and adaptation.
Several caveats are necessary regarding the
two models presented in this section. First, the
fundamental culture of a country changes
slowly over generations or in response to
specific traumatic national events. Therefore, a
static assessment of a culture is generally
representative but not specifically descriptive.
That said, cultures are dynamic and in a
constant evolutionary state, albeit somewhat
invisible to the outsider. This is paradoxical,
but evident in surface behaviours, trends and
fads, which appear to be sudden and dynamic,
but have little lasting affect on the culture of a
country or region. Second, each country
exhibits a range of cultures. Each region,
major city and/or ethnic group has its own set
of cultural assumptions that are related to the
country’s overall culture but are not identical.
Third, each person’s personal socialization
and development affects his or her cultural
assumptions. Therefore, a static set of cultural
assumptions, based on a general understanding
of norms or specific behaviours, might not be
appropriate for the individual with whom one
meets to conduct business. The models
presented here are meant to guide thinking
not to represent the behaviour of specific
individuals.
Classification of Cultures Model
Assumptions regarding the use of time, the
approach to the task at hand and the role of
relationships in making business decisions vary
Copyright # 2008 John Wiley & Sons, Ltd.
Camille P. Schuster and Michael J. Copeland
throughout the world. While 24 hours a day is a
constant throughout the world, people use
that time differently. Hall’s (1959, 1966, 1976,
1983) concepts of time relate to how people in
particular cultural groups use time. Those
who perceive time as monochronic see time
as linear or sequential, even referring to this
intangible ‘as money’ and are quick to not
‘waste’ it. Time must be used wisely to
accomplish tasks. Spending time, developing
and/or maintaining relationships are less
important than accomplishing tasks by the
designated deadline to those with a mono-
chronic view of time. Those who perceive
time as polychronic find it normal to allow
several events to happen at the same time
or for time to expand like ‘rubber’. While
accomplishing tasks may be an important
goal, developing and/or maintaining relation-
ships may be equally or more important
meaning that time can be taken away from
task accomplishment to use on deepening,
developing or repairing a relationship. Those
with a polychronic approach to time expect
interruptions involving important issues that
may be family, relationship or task related.
Completing a task by a deadline may not be the
most important goal if a more important issue
involving a critical relationship surfaces.
Hofstede’s (1980, 1983, 1997) concepts are
helpful for identifying how people work within
organizations. The concept of uncertainty
avoidance relates to the need to know or
control what will happen. Germany has a
moderately high score (65) and, in Germany,
agendas are normally circulated well before a
meeting so everyone will arrive prepared to
discuss the items on the agenda (www.
geert-hofstede.com/hofstede_dimensions.php).
Japan has a very high score (92) and, in Japan,
meetings are generally very formal with the
expectation that no decisions can be made
regarding an idea proposed at that meeting
because the group needs to meet to develop
consensus on the new idea. The concept of
personal distance refers to how accepting
people at lower levels of society are to the
idea that those who have higher levels of status
and power should be allowed to follow
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Cultural theory in use
different rules. The patriarchal society of
Mexico has a high score (81) so decisions in
Mexico are made by those who have status and
authority at the top of the hierarchy. Sweden,
on the other hand, has a low score (31) and is
a country in which management practice
encourages individual empowerment and
decision-making. The concept of individual-
ism/collectivism refers to whether decisions
are made for the benefit of individuals or
groups. With a low score (18), South Koreans
generally make decisions as a group so one or
two representatives attending a meeting
usually do not have the authority to make a
commitment for the company. With a high
score (90), Australian businesspeople are
usually empowered to make decisions on behalf
of their company. The concept of masculinity/
femininity refers to the importance of accom-
plishments versus the importance of nurturing
efforts. With a relatively high score (69)
Mexicans are more concerned with accom-
plishment, while Swedes with a low score (5)
are more concerned with making sure everyone
is assured quality of life. All of these concepts
are embedded in the structure of government
and the process of doing business.
Studying concepts individually yields great
insight and understanding about people of a
particular culture, how they look at the world,
or might behave in a particular business
situation. However, remembering the specific
position of each country on each of Hofstede’s,
Trompenaars’, Usunier’s, the Cultural Orien-
tation Model’s, or Hall’s dimensions and how
those dimensions interact with each other to
create the structure, process and communi-
cation norms that impact business practice
across countries is extremely difficult.
Since many employees in organizations face
the challenge of conducting business with
people from other countries, often in second
or third languages, often having little time
for preparation, there is a need for cultural
information to be classified in a way that makes
it easy to recall and apply. Tucker (1982)
created a model that placed countries on a
continuum based upon these concepts and
presented it at Procter & Gamble. The model
Copyright # 2008 John Wiley & Sons, Ltd.
265
was adapted by Michael Copeland (1987,
1988, 1993) at Procter & Gamble. After a
modification by Ballon, (1994) at Sophia
University in Tokyo, Schuster and Copeland
(1996) published the Cultural Classification
Model that places countries or regions on a
continuum anchored by the concepts of Task,
Relationship and Time.
In the succeeding 10 years, eastern and
central European countries have changed
considerably during their transition to a free
marketplace. China continues in its journey
to create a socialist, free marketplace philos-
ophy. Countries in Africa are developing at
different stages and are becoming more active
participants in the world economy. India is
also emerging as a strong economic player.
The concepts used as anchors in the model
continue to be important dimensions of
cultures related to how time is spent on
business activities. Decisions about classifying
countries or regions depend upon whether
the differences within a group of countries
are greater or smaller than the differences
with the groups on either side in the model.
The classification has been updated in the
Classification of Cultures Model (Schuster and
Copeland, 2006) to reflect the different
positioning of countries as their orientation
towards Task, Relationship and Time adjusts
during their transition to a free marketplace
(Figure 1).
This model is a useful tool for identifying
similarities and differences among countries by
visualizing where a country or region is placed
on the model. This is important for business-
people who move quickly from one area of the
world to another or who are going to a country
for the first time. The model provides a broad
framework for quickly placing a country in
terms of the Task, Relationship and Time
dimensions. However, there are other import-
ant elements of culture that are distinctive,
need to be included in business planning and
have significant impact on the conduct of
business. The Classification of Cultures Model
is not sufficient for an in-depth understanding
of culture and/or knowing how to adapt to do
business successfully in a country or region,
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266 Camille P. Schuster and Michael J. Copeland

Figure 1. Northwestern and Central Europe includes the countries to the north and west of Switzerland including the
city of Paris but not the rest of France. Mediterranean Europe includes France (with the exception of Paris), Spain,
Portugal, Greece and Italy. Eastern Europe and Russia includes the former Soviet block of countries.
From Schuster and Copeland. Global Business Practices,1E. # 2006 South-Western, a part of Cengage Learning, Inc.
Reproduced by permission. www.cengage.com/permissions

but it does provide a sound basis for
preparation and planning.
Elements of business culture
continua model
Every culture has a unique view of the world;
every community or organization within that
culture has its own method of operation within
that culture; every individual has his or her
own personality and set of values. While
successful businesspeople adapt to individuals
in specific business situations, understanding
the world as billions of individuals is not
feasible for people involved in either global
government or commerce.
Identifying and understanding the elements
of culture is an important first step but does not
necessarily address the conduct of business.
Classifying cultures according to Task, Relation-
ship and Time is also helpful for comparing how
groups view business tasks. However, neither
of these approaches takes the conceptual
information and describes how it impacts the
practice of business. Doing business in a
particular country or region is directly affected
by that country or region’s cultural approach
to the structure of the business environment
which is created out of cultural norms towards
the role of government, rule of law and
sense of hierarchy in that culture (Yip, 1995;
DeJong et al., 2006; Kanungo, 2006; Yasin
and Yavas, 2007). Doing business is also
constrained by the accepted and expected
processes for doing business—how activities
flow, expectations regarding punctuality or
the separation between private and public
life (Yasin and Yavas, 2007). These constraints
affect where and when business takes place.
Business is also affected by the way people
communicate. Whether words have explicit
or implicit meaning has a major impact on
the role of contracts. Both style, whether
direct or indirect, and the form of logic
determine how information is presented
and whether it is perceived as persuasive
(Harzing, 2006; Guss and Wiley, 2007).

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Cultural theory in use
Truthfulness has an immediate and con-
sequent effect on the credibility of communi-
cation which is foundational when establishing
relationships or creating agreements. The
combination of beliefs, attitudes and values in
each country or region creates different
positions on all of these elements. Countries
can be placed on each of these continua by
combining theoretical and empirical infor-
mation. The next section describes positions
on each continuum (Figure 2).
Figure 2. Elements of Business Culture Continua.
Copyright # 2008 John Wiley & Sons, Ltd.
267
Structure (Role of Government,
Rule of Law, Sense of Hierarchy)
The governing philosophy in a country
determines the degree of freedom companies
have for conducting business, resulting, in
general, from the government’s adoption of a
free trade or central control philosophy or
some variation of the concept. For example the
legacy of noblesse oblige in Europe carries
through in the current government which is
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268
empowered to protect its companies and take
care of its citizens. Transitional countries may
not have a strong system of government or
well-established rule of law. As a result,
hierarchy, status and place within a strong
social structure provide the constraints lacking
in the political system. Western countries with
a strong task and time orientation rely heavily
on a legal system that specifies either what
business must do or what business cannot do.
Consistent enforcement of the laws creates
transparency and determines the reliability of
these political systems. In countries with
unstable governments and legal systems, the
informal hierarchy among citizens in that
country provides the constraints, guidelines
and protections for doing business.
Role of Government
On one end of the continuum are countries
such as the United States, Australia and Canada,
which were founded on Adam Smith’s view of
a laissez-faire government that creates policies
to allow business activities to flourish in a
free marketplace (Harris, 1982; George, 1983;
Miller, 1987; Zemke, 1988). On the other end
of the continuum, are countries, such as
Taiwan or Cuba, that allow government, either
central or local or both, to be directly involved
in business activities (Rotzoll, 1986; Zamet and
Bovarnick, 1986; Garten, 1992; McGregor,
1993a,b; Marble and Lu, 2006). A more centrist
approach is taken in countries such as Japan or
Singapore, in which government provides
policies, goals or directions for the business
community but is normally not a partner in
business agreements (McCooey, 1984; About,
2003).
Rule of Law
At one end of the continuum, countries, such
as Germany or Great Britain, believe that
systems and procedures created by an
approved process establish the guidelines that
govern business transactions (Ghauri, 1986;
Nye, 1987; Harris and Moran, 1991; Moran and
Copyright # 2008 John Wiley & Sons, Ltd.
Camille P. Schuster and Michael J. Copeland
Stripp, 1991). These systems, procedures or
laws can be relied upon and are consistently
enforced, thereby creating transparency in
business practice. At the other end of the
continuum, countries, such as Russia, Indone-
sia or Nigeria, have not created systems and
procedures that are routinely and equitably
enforced throughout the country but rely
more on a situational or pragmatic approach
to conducting business (Renwick, 1982;
Gosling, 1990; Wosinski and Zischke, 1992).
While difficult to accept for some business-
people, ends often justify the means in
countries without an established or respected
rule of law. Adherence to norms, established
within accepted networks, is often more
important than abiding by laws and govern-
ment policies.
Sense of Hierarchy
Countries, such as Australia and the United
States espouse the value of equality on one
end of the continuum, meaning that each
individual has the same set of rights, obli-
gations and duties (Fieg and Blair, 1975;
Wallin, 1976; Winham, 1979; Hofstede,
1980, 1983, 1997; Graham and Herberger,
1983; Hawrysh and Zaichkowsky, 1983;
Nadler and McScoggins, 1993; Campbell,
1994). No one has special privileges because
of position, birth or wealth. Individuals
are empowered to make decisions, take
risks, undertake new ventures or solve
problems on their own or as delegated by
their organization. At the other end of the
continuum, countries, such as Argentina
and Japan, have hierarchical systems in
which people of high status are expected to
have special privileges (Yoshimo, 1968;
Guittard, 1974; Wallin, 1976; Hofstede,
1980, 1983, 1997; Hawrysh and Zaichkowsky,
1983; Copeland and Griggs, 1986; Hartman,
1987; Mendosa, 1988; Hill and Birdseye, 1989;
Harris and Moran, 1991; Chatterjee et al.,
2006; Marble and Lu, 2006). Individuals know
their position within the hierarchy and adhere
to the norms of the group. In countries with
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Cultural theory in use
known and respected hierarchical systems,
the comfort and familiarity of implied expec-
tations make it easy for the local people to
conduct business, while creating a difficult
dynamic for the uninitiated foreigner, who
may not understand with whom to deal or
when to ask for third parties to intervene. In
countries without well-established and well-
enforced political and legal systems, the
hierarchies within informal networks create
and enforce group norms.
The form of government, rule of law and/or
importance of hierarchy determine how
businesses can interact with one another and
to what guidelines of individual behaviour
individuals need to adhere for success when
conducting business.
Process (Punctuality, Flow of
Activities, View of Privacy)
Time is conceptualized in a number of
different ways. A monochronic view perceives
time as moving forward in a linear and
sequential fashion with segments clearly
defined (Graham and Herberger, 1983;
Hawrysh and Zaichkowsky, 1983; Copeland,
1986; Miller, 1987; Joy, 1989; Laurent, 1991;
Salacuse, 1991). A polychronic view perceives
time as moving forward in a nonlinear and
simultaneous fashion (Alghanim, 1976; Lee,
1980; Catoline, 1982; Copeland, 1986; Cope-
land and Griggs, 1986). A flexible view of time
perceives that there is always more time to be
used on a given activity (Huneeus, 1984;
Mendosa, 1988; Laurent, 1991; Moran and
Stripp, 1991). A cyclical view of time perceives
time as moving in phases with each event
being given the amount of time it needs
(Renwick, 1982; Hawrysh and Zaichkowsky,
1983; Ghauri, 1986; Fadiman, 1989). Knowing
how a particular culture views time is
important for understanding how business
activities will likely flow and how individuals
are expected to use time. The value of a culture
regarding the separation of public and private
life is important for understanding which
activities are appropriate in which situations
Copyright # 2008 John Wiley & Sons, Ltd.
269
as well as when personal or business topics are
appropriate for discussion.
Punctuality
Some countries, such as the United States and
Netherlands, view time as fixed and linear;
time can be segmented into discrete blocks
(Kennedy, 1967; Wallin, 1976; Saxe and Weitz,
1982; Galante, 1984; McCaffrey and Hafner,
1985; Copeland, 1986; Bryan and Buck, 1989).
Time is valuable and not to be wasted on
non-task activities. The mark of a professional
is the ability to strictly adhere to timelines. On
the other end of the continuum, in countries
such as Indonesia or Saudi Arabia, time is
flexible and stretches like rubber to cover all
important or predestined tasks (Alghanim,
1976; Rand, 1976; Lee, 1980; Ghauri, 1986;
Wasnak, 1986; Schuster, 1987; Fadiman, 1989;
Harris and Moran, 1991; Moran and Stripp,
1991). Important people have many demands
on their time and will attend to all important
tasks as soon as possible.
Flow of Activities
On one end of the continuum are countries
such as Germany or Canada that view time as
linear, looking backward to the beginning of
time and forward to the end of time (George,
1983; Miller, 1987; Harris and Moran, 1991;
Snyder, 1993; Drabble, 1994). Activities are
divided into discrete blocks of time with each
activity relegated to specific time periods: meal
time, bedtime, family time or study time. In
other countries, such as Japan or Chile, time is
seen as cyclical, with time devoted to each
phase of life: birth, growth, death and rebirth
or regeneration. As a result, time is not so
limiting as in the more linear countries where
time is treated more as a commodity (Davis,
1970; Wallin, 1976; Kazuo, 1979; Huneeus,
1984; Mendosa, 1988; Banthin, 1991; Harris
and Moran, 1991). Accomplishing tasks means
that sufficient time must be spent on all
phases rather than rushing through phases to
meet a deadline. Time may not be perceived as
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270
linear so activities can and do happen
simultaneously.
View of Privacy
On one end of the continuum, in countries
such as Germany, Netherlands and Japan,
individuals keep their private life and business
life totally separate (Ballon, 1977; Ramsey and
Birk, 1983; March, 1985; Biggar, 1987). Time
for family is spent with extended members of
the family or close friends and does not
impinge upon time set aside for work. On
the other hand, family obligations are central to
both social and business life in Brazil or
Thailand (Davis, 1970; Wallin, 1976; Lee,
1980; Copeland, 1985; Copeland and Griggs,
1986; Alghanim, 1976; Mendosa, 1988; Harris
and Moran, 1991). Business discussions are
conducted within a family group or small
network so need not be continued only at
official meetings. A business network includes
family members so there is little, if any,
separation between private and public life.
There is just all-inclusive life.
These elements determine how and when
business can be conducted—whether business
activities are separate from family events or
part of family events, whether business
activities take place within discrete time peri-
ods, whether social activities include business
discussions, whether time is flexible and the
importance of deadlines.
Communication (Truth, Words,
Style, Logic)
Understanding the language of a particular
cultural group is valuable for learning how
members of that culture view the world.
English presents a linear view of the world;
whereas, Chinese presents a holistic view of
the world. Learning the philosophical under-
pinning of a culture’s perception of truth is
critical for determining how to rely on the
meanings of words when negotiating a deal or
crafting a contract. Western cultures are based
upon the philosophy of Plato and Aristotle
Copyright # 2008 John Wiley & Sons, Ltd.
Camille P. Schuster and Michael J. Copeland
which holds that there are universal truths so
ideas, activities and constructs are often
viewed as good or bad, right or wrong or true
or false. Eastern philosophies have hierarchies
as a foundation of their worldview so the goal
of interaction is to preserve harmony as
opposed to working within a framework of
absolutes. Many of the Eastern cultures
recognize that there may be several variations
of ‘the truth’ and view nothing as absolute.
When using implicit languages (e.g. Chinese,
Arabic, Japanese), words need to be inter-
preted in light of how they have been used to
maintain harmony within the group in a
particular situation. In those cultures oriented
towards maintaining harmony, relationships
are extremely important. Conversation tends
to be indirect to avoid upsetting harmony.
When using explicit languages (e.g. Swedish,
Dutch, English), words are used in a concrete
way, so that what is written in a contract is
the behaviour that will be expected. In those
cultures oriented towards universal truths,
language is direct and specific so that all
participants are clear about directions, expec-
tations and deadlines. In western countries,
logic is formal based on the philosophies of
Aristotle and Plato. Evidence is critical and
arguments must adhere to specific rules. In
other cultures, forms of logic may be based
upon a sense of honour, long-term relation-
ships or intuition. As a result, creating
persuasive arguments and using appropriate
forms of evidence will vary. Objective data and
charts or spreadsheets are not persuasive in all
areas of the world. In some cultures, such as
Taiwan, asking for a favourable decision based
upon the length of a relationship may be more
persuasive than objective data.
Truth
Countries with a dominant Judeo-Christian
religious tradition, such as Israel, Italy or
Canada tend to believe in a universal truth—
things are either right or wrong, and some
truths are always true (Ramsey and Birk, 1983;
Garten, 1992; Hofstede, 1997; Trompenaars,
Journal of Public Affairs, November 2008
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Cultural theory in use
1998). Countries with a different religious
tradition, such as India or Japan, have a
pragmatic view of truth, with every situation
and each person’s perspective being different.
Maintaining harmony is an important goal in
these countries and truth tends to be relative
rather than absolute (Fieg and Blair, 1975;
Ballon, 1977; Ramsey and Birk, 1983; Joy,
1989; Mortenson, 1992; Hofstede, 1997;
Trompenaars, 1998; Chatterjee et al., 2006).
There may even be several competing truths in
a given business situation. Cultures with a
Judeo-Christian foundation want one version
to be accepted as ‘true’ or ‘right’. Cultures with
a pragmatic view are comfortable with several
versions of the truth existing at the same time.
Words
In countries in which English or a romance
language is the native language words refer to
specific objects, people or ideas (Hall, 1959;
Ballon, 1977; Ghauri, 1986; Miller, 1987;
Campbell et al., 1988). Precision requires
the use of the specific words to convey
thoughts accurately and efficiently. On the
other end of the continuum, languages such as
Japanese or Chinese use groups of symbols to
convey thoughts, ideas and objects while
maintaining face with participants (Zamet
and Bovarnick, 1986; Brunner and You,
1988; Hofstede and Bond, 1988; Stone, 1989;
Zhang and Kuroda, 1989). Individual symbols
have significantly different meanings depend-
ing upon the combination of symbols, relation-
ships between speakers or context of the
situation.
Style
Countries such as Sweden or the United States
value language that is direct, to the point and
concise (Willett and Pennington, 1966;
Olshavsky, 1973; Foy and Gadon, 1976; Hall,
1976; Fisher, 1980; Donohue, 1981; Graham
and Herberger, 1983; Donohue et al., 1984;
Soldow and Thomas, 1984; Schuster and
Danes, 1986; Schuster, 1988; Alexander
Copyright # 2008 John Wiley & Sons, Ltd.
271
et al., 1991). In these countries, it is often
said that people should ‘say what they mean
and mean what they say’. On the other end of
the continuum, in countries such as Mexico,
Indonesia and India, ‘saving face’, maintaining
harmony or respecting the other person’s
honour requires the use of an indirect form of
communication in which there are many
ways to convey information without stating
something literally or directly—especially
disagreeable information that might upset
the harmony (Fieg and Blair, 1975; Hawrysh
and Zaichkowsky, 1983; Hall, 1976; Zamet and
Bovarnick, 1986; Biggar, 1987; Graham, 1987;
Zhang and Kuroda, 1989). Understanding ideas
conveyed may depend upon what is not said,
as much as or more so, than what is said during
a conversation.
Logic
Forms of logic, on the one hand, are formal,
syllogistic deductive arguments used in
Western countries such as France or Great
Britain in which it is critical to have sound
premises, or inductive arguments such as
those used in the United States, in which
objective evidence and representative exam-
ples are critical (Davis and Silk, 1972; Fisher,
1980; George, 1983; Galante, 1984; McAlister
et al., 1986; Perdue et al., 1986; Campbell
et al., 1988; Laurent, 1991; Fisher et al., 1993;
Snyder, 1993). On the other end of the
continuum, alternative forms of heuristics
are legitimate, such as circular logic or
arguments based on honour or relationships
(Alghanim, 1976; Radway, 1978; Catoline,
1982; Chatterjee et al., 2006; Kazuo, 1979;
Fisher, 1980; Graham and Sano, 1984; Graham,
1985a,b; Copeland and Griggs, 1986; Ghauri,
1986; Mendosa, 1988; Harris and Moran, 1991;
Moran and Stripp, 1991; Salacuse, 1991;
Graham et al., 1992; Mortenson, 1992).
Effective communication depends upon a
thorough understanding of not only the
language, but also the style, sense of truth
and logic that is used by a particular cultural
group. Assuming only one approach to com-
munication and/or assuming that everyone
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DOI: 10.1002/pa
272
speaking English as an acquired language is
using an American/British approach to business
decisions is a recipe for disaster. Understand-
ing the form of communication used by a
particular cultural group allows for appropriate
adaptation.
The purpose of the next section is to
combine the two models presented in this
section and create a framework that can be
used to suggest how behaviour can be adapted
by those doing business in other countries. The
next section presents a matrix created by
locating the countries or regions identified in
the Classification of Cultures Model on each of
the continua identified in this section.
Intersection of theories of culture
and business practice
Theories of culture in isolation or theories of
general cultural constructs are useful for many
activities and for understanding a given
cultural group. However, learning how to
use that information to adapt one’s behaviour
when conducting business activities in other
countries requires a different framework.
Learning the specific cultures in each of
200þ countries and how the cultural values
of each country affect business activity is an
impossible task—especially for a person’s
first overseas assignment or for someone
who has to troubleshoot a problem and is
being sent to a new country in 2 days. The
model that follows incorporates cultural
information relevant for business activity in
an easily retrievable manner so decisions about
adaptation can be made.
The countries and regions in the Classifi-
cation of Cultures Model (Schuster and Cope-
land, 2006) were used to form the vertical axis
of the Global Business Practices Model (GBPM;
Figure 3). When creating models some level of
detail is generally lost in an effort to present a
useable framework. While differences occur
within and across countries and regions, these
differences are less significant than the differ-
ence between groups. Areas of consensus
across the work of Hall (1959, 1966, 1976,
Copyright # 2008 John Wiley & Sons, Ltd.
Camille P. Schuster and Michael J. Copeland
1983), Hofstede (1980, 1983, 1997), Schuster
and Copeland (1996, 2006), Usunier (1996),
Trompenaars (1998), Walker et al. (2003) and
the research cited in the previous section, as
well as empirical work conducted by the
authors over 40þ years and validation from
businesspeople in these cultural groups was
used to place countries on either end or in a
more central position on each continuum. This
information forms the horizontal part of the
matrix resulting in the GBPM (Figure 3).
Two observations are immediately apparent
from the matrix: (1) no two country groups are
identical and (2) there are major differences
between ‘western’ and ‘eastern’ business
practices. This is a good visual representation
of ‘psychological distance’ while providing
substance as to the nature of that distance. The
accepted business practices from any one
country group will generate some level of
success in the country groups located next to
them in the matrix. The further distant the
other country is on the matrix from one’s
home country, the more dissimilar business
practices will likely be.
An advantage of using the matrix is that it
immediately identifies major similarities and
differences as a starting point for adaptation.
Without having to learn everything there is
to know about a country’s culture, the matrix
encapsulates a considerable amount of infor-
mation that can be used as a guide for
adaptation. Once differences and similarities
across concepts are identified, the person or
team who will be representing the company
can spend time preparing strategy, materials,
arguments and style of communication that
will be most effective when doing business in
the identified country or region. This section
will provide brief examples of a few forms of
adaptation to consider.
In those areas with a black square in the
Role of Government column, expect to use
time meeting government officials, forming
relationships with government officials and
seeking their approval or involvement with
business transactions. When doing business in
countries that have a grey square, taking time
to understand the role of government is
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Cultural theory in use 273

Figure 3. Global Business Practices Model. Role of Government: white, the government sets parameters and
constraints to create the environment for doing business; black, direct involvement of government in business as
a business partner. Rule of Law: white, reliance on systems and procedures; black, pragmatism or situational
considerations. Sense of Hierarchy: white, assumption of equality; black, assumption of status difference. View of
Privacy: white, business and private matters are separate; black, business and private matters are all part of one reality.
Sense of Time: white, fixed time; black, flexible or ‘rubber’ time. Flow of Activities: white, time works in a linear
fashion; black, time works in a cyclical fashion. Truth: white, universal truth; black, many truths exist at once. Words:
white, words have explicit meanings; black, words have implicit meanings. Style: white, communication is direct and
forthright; black, communication is indirect. Logic: white, formal deductive reasoning; black, alternative heuristic.
From Schuster and Copeland. Global Business Practices, 1E. # 2006 South-Western, a part of Cengage Learning, Inc.
Reproduced by permission. www.cengage.com/permissions

important. In some countries, the government
may be in a transitional phase creating new
regulations requiring permits or approvals,
may have incentives for certain industries or
may have high tariffs for some products. In
some way the government participates in
shaping the marketplace. In the countries
with a white square the government is not
normally involved in specific industries, with
the exception of national defence.
In those countries with a white square in the
Rule of Law column, the legal system is highly
developed and relied upon to create the
parameters for doing business. The laws are
expected to be followed because enforcement
is routine. The legal system typically operates
in an objective manner making decisions based
upon the merits of a case when complaints are
brought to the court. Therefore, creating a
contract is a serious undertaking specifying
who will do what within what time frame with
what results. Obtaining a signed contract is an
important goal of business. With a signed
document, all parties understand what specific
expectations will be fulfilled. That is what is
expected of a transparent business system. The
rest of the countries or regions have a grey or
black square signifying that the legal system is
not as well developed. Either the laws have not
been created or are not enforced. In these
regions, business activity cannot solely rely
upon the terms of a contract being fulfilled or a

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DOI: 10.1002/pa
274
complaint being upheld in court. Taking the
time to understand the system and to create
relationships with respected businesspeople is
critical for success. Managing the terms of the
contract by continued personal contact is
essential for success. Legal issues regarding
gifts and bribery need to be understood about
the area in which business will be conducted
and in the home country of the company doing
business.
In the countries with a white square for the
Role of Hierarchy there is an expectation
that businesspeople have authority to make
decisions, that people at many levels in the
organization are empowered to make de-
cisions regardless of their title, and that
ceremony or formality is not highly valued.
When doing business in the areas that have a
grey square, titles and status are more
important. Skipping over people to talk with
someone higher in the hierarchy is not looked
upon kindly. Ceremony, formality and eti-
quette are highly valued. In those countries
with a dark square, systems and processes are
not well established so the hierarchy and
norms of networks are very important. Taking
time to identify the members of a network, to
become accepted and introduced to others in
the network, to understand the concepts of
saving face and/or maintaining honour, the
personal obligations of membership and the
legality of adhering to obligations are concepts
that need to be understood before doing
business in these areas. All three of these
concepts (government, law, hierarchy) create
the structure within which companies con-
duct business.
In those areas that have a white square for
the View of Privacy, the expectation is that
business will be conducted in an office,
conference room or maybe during a meal
with only the participants involved in the
proposed business transaction. These activities
are separate from family life or general social
activities. In those countries with a grey
square, meal times and social activities
are more often part of business, but also
include relationship dimensions. Friends or
other business associates are often invited to
Copyright # 2008 John Wiley & Sons, Ltd.
Camille P. Schuster and Michael J. Copeland
participate. Demonstrating appreciation for
art, cuisine, history, sports or architecture
often helps to establish relationships. In
those areas with a dark square, there is little
separation between public life and private life.
Business may take place anywhere at any time
with different combinations of participants. An
important part of doing business is getting to
know one another as individuals so business is
being conducted even when business is not
the topic of discussion. As a result, waiting for a
formal meeting to discuss business is not an
effective practice and will result in lost time
and opportunity.
In those areas with a white square for
Punctuality the expectation is that business
meetings will start on time, that all members
will be present and that business should be
concluded within the timeframe of the meet-
ing. Those countries with a grey square are
generally more flexible about the start time of
business meetings. Important people have
many commitments and cannot be expected
to be prompt at every meeting. Important
issues that emerge have to be addressed, but
each meeting will be given an appropriate
amount of time when it begins. Punctuality in
those areas with a dark square is much more
flexible. Sometimes the infrastructure requires
flexibility because of traffic jams; sometimes
other more important business or relationship
issues arise and have to take precedence. In
many countries, the question about what time
is being used for meetings is becoming
common; participants want to know which
time frame is being used for a specific meeting.
In those areas with a white square for Flow
of Activities, time is linear, specific and
dedicated to specific activities. Decision-
making, planning and collaboration occur in
discrete time periods dedicated to specific
tasks proceeding in a linear fashion by
considering issues one at a time. In those
areas with a grey square, time is more flexible
with meetings starting later, stretching longer
and including business as well as social
activities. Rushing to keep things on schedule
results in frustration. The areas with a dark
square have a longer perspective on time often
Journal of Public Affairs, November 2008
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Cultural theory in use
including cultures that are thousands of years
old. Given this perspective, time often flows
without a sense of haste. Schedules can
change; social and business activities are both
important. Since people are important, taking
time to know people before making business
decisions is critical for success. Decisions are
not made on each issue in a sequential fashion.
All the issues need to be discussed and
considered first, so decisions can be made in
a holistic manner. All three of these concepts
(view of privacy, punctuality and flow of
activities) determine when business is con-
ducted with which people and at what pace.
In those areas with a white square in the
Truth column, universal truths are perceived
to exist. These truths cover all people in all
areas of the world with expectations that
everyone should adhere to them and that there
is only one truth. In those areas of the world
with grey squares, adherence to an absolute
truth is tempered with the need to protect
network members, preserve one’s honour and
demonstrate loyalty to family. As a result, truth
can have several versions. In those areas of the
world with dark squares there is no perception
of a universal truth. Different truths can and do
exist at the same time. It is often necessary to
say what must be said to maintain harmony and
save one’s face. As a result, agreement does not
necessarily equate to commitment. Probing
beyond the obvious meanings of words is
important for success.
In those areas of the world that have a black
square in the Words column, the meanings of
words are altered by the relationship between
people, the topic and circumstances. There-
fore, asking several questions in different ways,
spending social or personal time with people
and listening to how they say things or what is
not said are all important. Identifying differ-
ences in what words mean, probing for
consistency and learning to interpret levels
of formality are critical for success. In countries
with grey squares, nuanced or double mean-
ings of words are often relevant during
discussions. Developing a sophisticated voca-
bulary and paying attention to specific mean-
ings during conversations is important. Tact,
Copyright # 2008 John Wiley & Sons, Ltd.
275
confrontation, respect and disrespect can be
conveyed by the choice of words. In those
countries with white squares, words have
specific meanings. When making agreements
the words used create specific expectations for
future behaviour so choosing words carefully
is important.
In those countries with a white square in
the Style column businesspeople tend to have
direct conversations. Some areas may be more
formal than others but identifying problems,
issues, alternatives and solutions is pretty
straightforward and direct. Yes/no questions
are often asked. Yes responses indicate
committed agreement with expectations of
future behaviour. In those areas with a grey
square, topics may be addressed in a direct
manner but the style of conversation is more
tactful and nuanced. Agreements and disagree-
ments are equally polite and pleasant so paying
attention to the words used is important. In
those countries with a dark square the
preferred style is indirect. Words have ambig-
uous meanings so a yes response does not
indicate committed agreement; rather, it
represents polite acknowledgement. Listening
to what is not said or to what is implied is just
as important to understanding a conversation
as is listening to what words are used. Asking
direct yes/no questions results in no useful
information. Learning to ask indirect questions
is important for success.
In those countries with a white square for
Logic, objective data (generally numerical) are
important. Referring to data from credible
sources is also effective. The form of argument
is usually deductive in which conclusions
follow from accepted premises. Careful con-
sideration is necessary when agreeing to
premises. In those areas with a grey square,
acceptable forms of logic may be deductive,
inductive, based upon friendship or appeal to
one’s honour depending upon the people
involved. Generally objective data are helpful
when creating persuasive arguments but
arguing from circumstance or precedent can
also be effective. In those areas with dark
squares deductive, circular or emotional argu-
ments can be made based upon honour or
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276
precedent or religious principles. Preparing
arguments that can be effective in different
areas of the world is a useful tool. All four of
these concepts (truth, words, style and logic)
will have a part in determining the most
effective communication in a country or
region. This framework, while having to be
modified based upon the individuals with
whom you are doing business, provides a
filter for interpreting the words and actions of
the people with whom you are conducting
business.
The value of the GBPM is that it provides a
framework for condensing a great deal of
cultural information and demonstrating how
cultural differences intersect with business
practices. While the GBPM does not provide a
prescriptive list of how to do business
guidelines in any particular culture, the
framework can be used to facilitate prep-
aration, to guide a search for additional
information and to interpret behaviour. The
GBPM is an important heuristic to use when
preparing to work effectively within other
cultures. Instead of being left on one’s own ‘to
adapt to the local culture’, the matrix provides
guidance for working through decisions of
how and when to adapt and what the nature of
the adaptation should be to be successful.
Conclusions
Many theories of culture exist and are useful
for understanding the way people in a culture
think, behave and live. However, these
theories do not necessarily focus on how
business is conducted in that culture or how
one can prepare to do business effectively with
people in that culture. The purpose of this
paper is to create an intersection between the
theories of culture and the practice of
business.
Using the Classification of Cultures Model
identifies major cultural groups rather than
having to process cultural information for
200þ countries. Elements of culture, such as
structure (government, legal and personal),
process (time and people) and communication
(style, words, truth and logic), that are
Copyright # 2008 John Wiley & Sons, Ltd.
Camille P. Schuster and Michael J. Copeland
particularly relevant to conducting business,
were used to create a set of continua.
Combining those two perspectives resulted
in the GBPM which is the intersection between
theory and business practice.
Knowing what elements of culture impact
business activities in ways that are similar or
different between one’s home country and the
country in which business is being conducted
is important for success. Knowing where to
focus efforts in examining cultural differences
and how they relate to business behaviour is a
significant step forward in understanding how,
where and when culture impacts business
practice. The models portrayed in this paper
provide a theoretical framework that can be
used for future research. As countries change,
as business practices evolve and as cultures
evolve, testing these relationships at different
time periods is important so that continued
modifications in the GBPM can be made.
Remember the caveat: each individual’s
culture is determined by one’s country, family,
ethnic group, educational system and com-
pany training. Therefore, no two individuals
from any country will act in an identical
fashion. The matrix presented here, however,
creates a useful framework for beginning to
adapt behaviour and providing members of the
team with a repertoire of tools to be used.
Deciding whether and when to use them is left
up to the team members in a specific situation.
Having more knowledge and tools increases
the possibility of success when doing business
with people from another cultural group.
Biographical notes
Camille P. Schuster (Ph.D. from The Ohio
State University) is currently a Full Professor
of Marketing and Management at California
State University San Marcos and President of
Global Collaborations, Inc. Dr. Schuster has
also taught at Virginia Polytechnic Institue
and State University, Arizona State University,
Xavier University, Thunderbird School of
Management, and Indiana State University
Northwest. Dr. Schuster has authored
over 30 articles in professional and academic
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Cultural theory in use
publications and has conducted seminars and
worked with over 60 companies in more than
20 countries around the world.
Michael J. Copeland is a retired human
resources manager with Procter & Gamble.
Beginning in 1978 he was a key manager in
numerous technology transfers from the Uni-
ted States to Europe, the Middle East, and Asia.
He was also involved in recruiting and training
employees in the international are of P&G’s
global business. He has authored a number of
total quality, business writing, and inter-
national training articles. He has lived in
Europe, Asia, and North America.
Schuster and Copeland co-authored Global
Business Practices: Adapting for Success
(2006) and Global Business: Planning for
Sales and Negotiations (1996).
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