Master’s Degree Programme – Second Cycle (D.M. 270/2004) in Economia e Gestione delle Aziende – International Management Final Thesis Philippines and Italy: A Comparative Analysis of Power Distance Supervisor Prof. Massimo Warglien Graduand Erika Jeil Pagdanganan Buar Matriculation Number 848873 Academic Year 2017 / 2018 Special Thanks To Him, to my Parents, to Honey Grace, to my sister Sarah Jane (your life is very precious and sweet), to Prof. Warglien, and especially to Gareth. Table of Contents Table of Contents................................................................................................................................................3 List of Figures ......................................................................................................................................................5 Abstract.................................................................................................................................................................1 Method of Collecting Empirical Data ..............................................................................................................4 Quantitative Research Methodology ...........................................................................................................6 Literature Review ................................................................................................................................................8 1 The Importance of Culture .................................................................................................................... 15 1.1 Culture and Economic Development........................................................................................... 17 1.2 Culture and International Business Management ....................................................................... 20 1.3 The Asian and Western Culture .................................................................................................... 25 1.3.1 Time Perception of Westerns and Asians ............................................................................................... 28 1.3.2 Relationship Perception ............................................................................................................................. 31 2 Brief introduction to the Philippines .................................................................................................... 34 2.1 The Japanese occupation in the Philippines ................................................................................ 37 2.2 Power distance in Asia .................................................................................................................... 39 3 The Panorama of Two Society .............................................................................................................. 41 3.1 Italy’s Cultural Heritage and National Culture ............................................................................ 43 3.1.1 Italian Individualism ................................................................................................................................... 48 3.1.2 Italian Masculinity ....................................................................................................................................... 49 3.2 Philippines’ Cultural Heritage and National Culture .................................................................. 50 3.2.1 Philippines’ Short-Term Society ............................................................................................................... 53 3.2.2 Philippines’ Collectivism ............................................................................................................................ 54 4 Introduction of Power Distance ............................................................................................................ 58 4.1 Objectives of the Study................................................................................................................... 61 4.2 Questionnaires for the Research ................................................................................................... 61 4.3 First Section: Demographics .......................................................................................................... 62 4.4 Second Section: Family Measurement .......................................................................................... 66 4.5 Third Section: Society’s perception about Poverty, Freedom, Money, Equality, and Age ... 68 4.6 Fourth Section: Workplace ............................................................................................................ 72 5 Power-Distance: Philippines and Italy .................................................................................................. 76 5.1 The effect of Power Distance ........................................................................................................ 77 5.1.1 Italy’s division in Family structure ............................................................................................................ 80 5.1.2 Philippines’ Family Structure .................................................................................................................... 82 5.2 Family: The Philippines and Italy .................................................................................................. 83 5.3 Treatment of Children .................................................................................................................... 86 5.3.1 Independence of the Children .................................................................................................................. 87 5.3.2 Treatment of Children as Adults and their Obedience ......................................................................... 89 5.4 Respect and Old People ................................................................................................................. 93 5.4.1 Aging and Age consideration .................................................................................................................... 96 5.4.2 Elderly Situation in the Philippines ........................................................................................................ 100 5.5 Religion and Power Distance ....................................................................................................... 102 5.5.1 Politics in the Philippines and Italy ........................................................................................................ 111 5.5.2 Leadership is in the eye of the beholder................................................................................................ 116 Conclusions ..................................................................................................................................................... 127 Power Distance Scale Measure ..................................................................................................................... 129 Appendix 1 – Philippines Chart Survey Result .......................................................................................... 132 Appendix 3 – Italy Chart Survey .................................................................................................................. 139 Bibliography .................................................................................................................................................... 146 List of Figures FIGURE 0-1 SOURCE: HOFSTEDE’S CULTURAL DIMENSION OF PHILIPPINES AND ITALY ...........................................5 FIGURE 0-1 HOFSTEDE'S CULTURAL DIMENSION; HALL'S LOW/HIGH CONTEXT CULTURE.................................. 12 FIGURE 0-2 CULTURAL ICEBERG - EDWARD T. HALL............................................................................................. 13 FIGURE 1-1 – REPRESENTATION OF AMERICAN FLOW OF TIME (LEWIS, 2014)........................................................ 29 FIGURE 2-1 SOURCE: GOOGLE IMAGES - SPANISH EMPIRE TERRITORY DURING 15TH CENTURY ........................... 35 FIGURE 4-1 RESPONDENTS AGE OF ITALY AND PHILIPPINES................................................................................... 63 FIGURE 4-2 SOURCE: FIRST SECTION (ITALY) - RESEARCH THESIS SURVEY 2018 ................................................... 64 FIGURE 4-3 SOURCE: FIRST SECTION (PHILIPPINES) - RESEARCH THESIS SURVEY 2018 ......................................... 65 FIGURE 4-4 SOURCE: SECOND SECTION (IT - PH) - RESEARCH THESIS SURVEY 2018 ............................................ 67 FIGURE 4-5 CATEGORY C - FOR RESEARCH THESIS .............................................................................................. 70 FIGURE 4-6 CATEGORY D: FOR RESEARCH THESIS ............................................................................................... 70 FIGURE 4-7 CATEGORY E: FOR RESEARCH THESIS ................................................................................................ 70 FIGURE 4-8 CHART OF CATEGORY D .................................................................................................................... 71 FIGURE 4-9 F.4 QUESTION RELATIONSHIP TO H.4, H.5, H.6 .................................................................................. 73 FIGURE 4-10 F.3 QUESTION RELATIONSHIP TO H.2, H.3, H.7 ................................................................................ 74 FIGURE 5-1 SOURCE: WVS RATING OF FAMILY IMPORTANCE WAVE:6 .................................................................