Expanding Successfully in the Global Marketplace Essay

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As a way to improve profit margins companies have begun to view outsourcing as a necessary business strategy. India, with its low labor costs and strong technical expertise has become an attractive choice (Prasso, 2007). However, due to both cultural differences and compatibility issues numerous problems have been reported. A common mistake made is thinking there is a single national culture within India and that all individuals/social groups will behave the same regardless of geographic location (Prasso, 2007). According to Hofstede & McCrae (2004) national culture differences in work-related values and personality traits “interact to shape the behavior of individuals and social groups”. By researching and understanding how various…show more content…
It is important to understand that Hofestede’s cultural dimensions apply only at a national level, which is where differences between national cultures should be compared (Hofstede et al.). The result of describing individual personality by cultural dimensions is stereotyping, which has had Hofstede and other researchers strongly arguing against using the 1994 and 2008 Values Survey Modules at an individual level (Bearden, Money, & Nevins, 2006). Hofstede argues that these modules should only be used when comparing one society to another and has stated “individual-level correlations produce dimensions of personality; country-level correlations produce dimensions of national culture” (Hofstede et al., p.3). Hofestede’s research has been utilized as a conceptual foundation for studying cross-cultural differences while the five factor model for personality has renewed interest among psychologist to determine the relationship between culture and personality (Lee, McCauley, & Draguns, 1999). Reanalysis of personality scores has shown a significant and substantial correlation with cultural dimension scores (Hofstede & McCrae, 2004). Personality traits have been categorized into five broad categories of individual personality: extraversion, agreeableness, conscientiousness, neuroticism, and open to
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