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business and marketing research
INTRODUCTION
The seminal work (Hofstede 1994) identifies the generic factors that characterize value systems in different national cultures, including those of software and systems developers, applying statistical cluster analysis. The analysis was based on questionnaires from more than 50 countries. Each country could be given an index score for each of the following factors or dimensions of national cultures:
Power distance characterizes the extent to which people consider it natural that power, status, and privileges are distributed unequally among individuals or that this distribution has no high significance in their lives. In small power distance countries subordinates and superiors consider each other as existentially equal, and decentralization is popular, while large power distance countries subscribe to authority of bosses and centralization.
Individualism vs. collectivism characterizes people’s esteem of individual activities and successes vs. the importance of their belonging to a social group. In an individualist culture people are supposed to take care only of themselves and their immediate families, and remain emotionally independent from the group. In a collectivist culture people distinguish between in-groups and out-groups, expect their in-group to look after them, and individuals define their identity by relationships to others and group belonging. The individual and the group have a mutual obligation of protection in exchange for loyalty.
Masculinity vs. femininity is better expressed as confrontation and quantity orientation vs. compromise and quality orientation. In masculine cultures importance is placed on assertiveness, competitiveness, and materialism in the form of earnings and advancement, promotions and big bonuses. A feminine culture indicates the concern for people, the quality of life, nurturing, and social well-being.
Uncertainty avoidance characterizes people’s attitude toward ambiguous or unknown situations. Innovation

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