ISSN 1392-1258. EKONOMIKA. 2002 59 THE NATIONAL CULTURAL DIMENSIONS OF LITHUANIA Audra I. Mockaitis* Doctoral degree, social sciences Vilnius University Department of Marketing Saulėtekio al. 9,1-506, LT 2040 Vilnius Tel. (370 2) 366 146, Fax. (370 2) 366 150 E-mail: [email protected] This paper introduces the results of national cultural dimensions of potential Lithuanian managers, according to Hofstedes indices. It will be seen that Lithuanians scored high on Masculinity, and ave­ rage on Uncertainty Avoidance, Individualism and Power Distance, relative to all other countries in the database. These results are discussed in terms of their likely influence on management and mar­ keting in Lithuania. Introduction The disintegration of the Soviet Union ope­ ned the doors for foreign investors to reap the The influence of culture on management has be­ advantages of new markets, lower labor and en a much-debated topic for the last three deca­ production costs and the like. However, the des, its importance increasing with the growing doors were also opened to an array of cultu­ rates of internationalization and globalization. res, to people differing in their tastes and pre­ Companies and researchers alike have become ferences, languages, religion, educational le­ increasingly concerned with the application of vels, business and social customs and tradi­ standardized or tailored management techniqu­ tions, attitudes toward foreigners, work ethic, es across cultures. On the one hand are those negotiation styles, perceptions of time and spa­ scholars advocating a "culture free" approach to ce, levels of and views toward corruption and organizational solutions and, on the other, are bribery, attitudes toward power, risk-taking etc. those who maintain and provide empirical evi­ And despite this, little to no research has thus dence that culture by large, through the values far been conducted on the cultural similarities and attitudes of individuals, determines the pre­ or differences on the countries of the former ferences for certain organizational forms and ma­ Soviet Union (FSU). Except for case studies nagement methods over others. The latter view or general descriptions of country environ­ will be explored in this paper. ments, there are still few multi-country studies ' The author would like to thank the Foundation for International Information and Communication (IIC), the Hague for providing a grant to visit the IRIC and Aalborg University, Denmark, for providing a research grant and permission to conduct the study. 67 enabling comparison of countries in this diverse Lithuania. The results will serve local and fo­ region. Some cross-cultural studies have been reign business practitioners alike, enabling conducted in the larger Eastern European them to select the best organizational forms countries such as Poland (e. g., Nasierowski and and practices and to identify areas of mutual Mikuła 1998). However, publications on ma­ advantage and potential problems based on si­ nagement and organization in the smaller FSU milarities and differences. countries, except for general accounts of con­ textual factors, are still few and far between. Methodology Lithuania has been included in one cross-cul­ Any cross-cultural study must begin with a defi­ tural study, measuring the differences in perso­ nition of culture. Kluckholn and Strodtbeck nality characteristics of managers in Lithuania, (1961) identified 164 different definitions of Georgia, the Ukraine and Great Britain (Cook culture. Because this study is a replication stu­ et al 1998). However, this study says little about dy, instead of developing a unique definition the cultural characteristics of Lithuania, for alt­ of culture, Hofstede's description of culture as hough personality traits can sometimes provi­ "the collective programming of the mind, de indications as to the cultural characteristics which distinguishes the members of one hu­ of a country, making generalizations on cultu­ man group from another (1984:21)," will be res based on the personality dynamics of indi­ applied. In this case, nationality is used to de­ viduals is the same as treating cultures as though lineate groups and values are seen as the fun­ they were individuals. Hofstede (1984) terms damental determinant of culture. this inadequate treatment of data "reverse eco­ Hofstede (1984) conducted a study of IBM logical fallacy." managers and employees in 53 countries. He The objective of this paper is to introduce the distinguished four dimensions according to results of an empirical study on the cultural di­ which countries more or less differed in their mensions of Lithuania, based on the methodo­ results and labeled these dimensions Indivi­ logy of G. Hofstede. The Values Survey Module dualism, Power Distance, Uncertainty Avoi­ 1994 was administered to matched student sam­ dance and Masculinity. He hypothesized the ples in Lithuania and Denmark in the fall of 1999, implications of each of these dimensions on and scores for four dimensions - Individualism, management and organization. Uncertainty Avoidance, Power Distance and Individualism (IDV) (and collectivism ofl Masculinity, were obtained. The paper begins the opposite pole) refers to the relationship by outlining the methodological framework of between an individual and the society, to which the research. The results of the study are presen­ the individual belongs. Where individualism ted and compared to Hofstede's sample of coun­ predominates, there is a clear distinction, or tries. Suggestions for their application and for boundary, between the individual as a separate further research are discussed in the final sec­ entity and society. Where collectivism domi' tion of the paper. nates, the distinction between the individual The comparison of Lithuanian dimensions and the group is more blurred - the individu­ to those of numerous other countries in his stu­ al's personal interests tend to be determined dy will pave the path for more extensive stu­ or predetermined by the interests of the col­ dies on employee attitudes or the applicability lective. The level of individualism / collccti' of various Western management practices in vism in a society strongly influences the rela* 68 tionship between the individual and the orga­ with or accepts uncertainty. Higher uncertain­ nization. Collectivist societies are more emo­ ty avoiding societies tend to try to minimize tionally involved in the organization, and thus uncertainty through the use of more rules, con­ the organization, in turn, must assume a cer­ trol systems and rituals and adhering to tradi­ tain responsibility for its members. The natu­ tions, they are more dogmatic, have more or re of this psychological contract in such socie­ rigid laws. In organizations this is apparent in ties also determines the relationship among specified rules and regulations, bureaucracy, ri­ members - there will be less acceptance of out­ gid planning, more use of reports and memos, siders and more willingness to conform, less less risk-taking, more specialized tasks, func­ conflict, less initiative and more emphasis on tions and careers, less initiative, fewer innova­ security and group decisions. The opposite is tions, loyalty toward the organization and into­ true of individualist societies, where people join lerance of conflict and competition among em­ organizations often to satisfy their own perso­ ployees. Lower uncertainty avoiding societies nal interests and needs. Employment, promo­ have overall lower anxiety, are not as resistant tion and dismissal will be based on merit, indi­ to change and more willing to take risks, have a vidual initiative is encouraged and individual preference for the general versus the specific, decision-making, goals and rewards are pre­ such as broad guidelines, conflict and competi­ ferred. tion are viewed as natural and sources of ideas, Power Distance (PDI) refers to the degree of innovations and change. inequality existing in society (the way that po­ The final dimension (MAS) distinguishes wer is distributed among the more and less po­ between those societies, in which there is a clear werful) and accepted by members or the extent distinction between gender roles and dominan­ that effort is made to minimize these differen­ ce of certain "masculine" attitudes and values ces in society. In organizations, this would be (high Masculinity) and those societies, in which represented by the superior-subordinate rela­ the line between sex roles is more fluid and the­ tionship. In countries where power distance is re is a preference for more "feminine" values higher, individuals may behave more submissi­ (low Masculinity). Individuals from masculine vely toward people of higher status and will be societies will generally have a preference for more afraid to disagree with their superior. Sym­ earnings, recognition and a challenge in their bols of status and prestige are accepted, deci­ job versus cooperation, working atmosphere or sion-making will be concentrated in the hands job security. Individual decision-making will be of those in power, meaning there will be more more valued, as will achievement / ambition and autocratic or paternalistic management styles, large organizations. There will also be more gen­ as the role of the manager in such countries is to der differentiation in such societies; that is, men initiate structure. Employees in higher power will generally assume "masculine" roles and jobs distance countries will be more likely to accept and women "feminine"