Hofstede’s Cultural Dimensions (DP IB Business Management)
Revision Note
Hofstede's Cultural Dimensions
Hofstede's model is a way of understanding the culture of a country based on its cultural values
It can help organisations improve communication and cooperation between people from different cultures
It provides a framework for understanding how cultural differences can affect business dealings
The Hofstede organisation uses surveys to generate scores for each country using six different variables
These scores are then accessible to businesses to use in their decision-making process
The tool is most useful when the scores of different countries are compared with each other
Diagram: country rankings using Hofstede's model
(Source: Country Comparison Tool)
Six different dimensions are used for comparison
Each dimension is expressed on a scale that runs from 0 to 100
If a score is under 50, the culture scores relatively low on that scale
If any score is over 50, the culture scores high on that scale
An Explanation of Hofstede's Six Cultural Dimensions
Dimension | Explanation | Examples |
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Power Distance |
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Individualism |
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Motivation Towards Success |
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Uncertainty Avoidance |
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Long-term Orientation |
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Indulgence |
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Using Hofstede's Model
Hofstede's model can help businesses to make informed decisions and develop appropriate strategies when operating in international markets
In particular the model can help a business to
Understand cultural differences across locations in which it operates
Focus its market research and product development
Tailor its promotional activities
Structure HR, training and team management appropriately
Determine suitable international expansion strategies
Consider approaches to corporate social responsibility
Applying Hofstede's cultural dimensions to AirBnB's international operations
Launched in 2008, Airbnb is a US-based company operating an online marketplace for private hosts to promote short- and long-term homestays and experiences
The company acts as a broker and charges a commission from each booking
It operates in around 220 countries around the world and generated its first profit in 2022
AirBnB Hofstede Analysis
Cultural Dimension | Explanation | Application to AirBnB |
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Power Distance |
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Individualism |
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Motivation Towards Success |
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Uncertainty Avoidance |
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Long-term Orientation |
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Indulgence |
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Evaluating Hofstede's Model
Whilst Hofstede's model can help businesses make better decisions, it has been criticised as outdated and for leading to confirmation bias
An Evaluation of Hofstede's Cultural Dimensions Model
Strengths | Weaknesses |
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