Diversity is an Asset: How Tightness/Looseness of Culture Impacts Innovation

Do you feel more creative when you are given rules to follow or no rules at all?

Does freedom inspire or limit you?

Today, we’ll delve into a study regarding the degree of tightness and looseness in cultures and how that impacts innovation.

But first, let’s identify what tightness/looseness in culture means.

Defining Tightness/Looseness

As you may have guessed, the “tightness” or “looseness” of a culture is related to its hierarchical structures and social norms.

Witkin and Berry define it as the

“degree of hierarchical structure among sociocultural elements in a society”

While Gelfand, Nishii, & Raver define it as

“the strength of social norms and degree of sanctioning within societies.”

In other words, loose cultures allow flexible and informal social norms, while tight cultures maintain order, coordination, and control. 

Why is Impact Innovation?

For decades, scholars in management and economics have examined the connections between innovativeness and economic performance, often concentrating on conventional “hard factors” such as research and development investments or educational initiatives. 

However, in an era of globalization where cultural dynamics play an increasingly crucial role, the impact of cultural characteristics on innovativeness has been relatively overlooked. 

In this study, researchers employ various econometric models to examine the associations between cultural tightness and looseness and national innovativeness.

The Study

In line with the theoretical framework, researchers used the Global Innovation Index and the rank cultural tightness–looseness combination index.

They identified a significant positive association between cultural looseness, as measured by the Global Innovation Index (Uz (2015a)), and national innovativeness. 

However, this correlation did not hold when using data provided by Gelfand et al. (2011a). 

Researchers concluded that the higher number of surveyed countries, larger sample sizes, and a focus on specific tolerance in Uz’s (2015a) study provide a more comprehensive and accurate representation of cultural tightness-looseness, enhancing the reliability of estimation models.

Diversity is an Asset

The study’s interpretation of the results reveals a significant positive connection between innovativeness and cultural looseness when tightness-looseness is measured as a spread of norms. 

This suggests that societal pluralism and diversity of opinions contribute to innovativeness. 

However, cultural looseness does not equate to high individual tolerance in general; rather, it signifies the endurance of varying degrees of specific tolerance of controversial issues within an open society.

These findings align with studies at different levels, indicating that diversity, when managed constructively, serves as an asset for innovativeness rather than an obstacle. 

This study emphasizes the importance of balancing diversity with participatory safety to enhance team identity and foster creativity. 

The cultural values of a society, as reflected in its approach to innovation, play a crucial role in shaping its economic and creative landscape. 

Recognizing the paradoxical nature of cultural looseness—simultaneously allowing individual freedom and embracing culture-specific norms—can provide valuable insights into fostering societal innovativeness.

Does Individualism Corrode Social Capital? Find Out Here

Would you require more social capital and cultural capital to succeed in an individualist country? Or less?

Do you think the individualist system or the collectivist system is more conducive to social cohesion?

There is a debate among theorists about whether individualism poses a threat to a society’s cohesion and communal association or whether it aids the development of social solidarity and cooperation

Some argue that the growth of individuality, autonomy, and self-sufficiency is essential for a healthy society, while others argue that excessive individualism undermines social ties and leads to a breakdown of community.

This study by Anu Realo and Jüri Allik suggests the opposite is true. 

Let’s take a look.

Individualism-Collectivism & Social Capital

Social capital and individualism-collectivism (IC) are two important constructs that have been studied extensively in the social sciences. 

As we outlined in a previous post, social capital refers to the networks, norms, and trust that facilitate coordination and cooperation among individuals and groups.

We’ve also extensively discussed IC – the degree to which people prioritize their own goals and interests versus those of the group.

Despite the seemingly contradictory nature of individualism and social ties, research on the relationship between social capital and IC suggests that there is a positive association between the two constructs. 

Individualism & Trust

Countries with higher levels of social capital are more individualistic, which suggests that independence and freedom to pursue one’s personal goals are of value to social capital. 

This is because social capital is based on trust, and trust is more likely to form in societies that value individual autonomy and self-determination.

Those societies in which trust is limited to only nuclear family or kinship have lower levels of social capital. 

Social capital is not evenly distributed within societies and can vary depending on the size of social networks and the degree of trust within them.

Social Capital Not at Odds with Individualism

To put it simply, social capital and individualism are not necessarily at odds. 

Instead, promoting social capital through policies that strengthen relationships and trust – such as investments in education, infrastructure, and community development – can help to build stronger communities, even in societies that value individual autonomy.

The Human Freedom Index: How Free Are You?

Nelson Mandela said,

“For to be free is not merely to cast off one’s chains, but to live in a way that respects and enhances the freedom of others.”

How would you define freedom?

Cato Institute, the Fraser Institute, and the Liberales Institut at the Friedrich Naumann Foundation for Freedom defined it with a metric called the Human Freedom Index.

The Index measures freedoms using 76 indicators, rating countries from 0 to 10, economically and personally, with 10 being the most free.

Economic freedom, for instance, involves an individual’s ability to prosper without government intervention, the ability to make personal economic choices and compete in markets, the protection of personal property, etc.

Personal freedom includes freedom of expression, equality, freedom of movement, security, etc.

Averaging these two fields based on scores for each of these 76 indicators, the Index arrived at the base score for 162 countries.

The Indicators

History shows that human progress takes greater leaps and bounds through human freedom.

As Albert Einstein said,

“For everything that is really great and inspiring is created by the individual who can labor in freedom.”

So, what human freedoms produce “great and inspiring” creations?

The Human Freedom Index suggests it’s such things as:

Using the most recent sufficient data available for each of these indicators, each nation was rated, averaging an overall score for the country.

The Scores

As you may have guessed, the nations that ranked as the freest are those whose cultural values emphasize personal freedom, many of which were democratic nations.

The top five countries in the 2019 Index were:

  • New Zealand 8.88
  • Switzerland 8.82
  • Hong Kong 8.81
  • Canada 8.65
  • Australia 8.62

The United States ranked 15th with a score of 8.46.

Those countries that ranked lowest tend to be totalitarian, one-party, or authoritarian states (or have historically been). 

The lowest ranked countries were:

  • Syria 3.79
  • Venezuela 3.80
  • Yemen 4.30
  • Sudan 4.32
  • Iraq 4.34

These data points can give you an idea of how you might fare in a foreign culture, based on your own culture’s relative freedoms.

Zookeepers Can Help

We’ve been talking about finding a Zookeeper to help you move in the world as an expat.

One of the reasons you might require one is if human freedoms are more or less restrictive in the country into which you’re expatriated.

Perhaps you’re moving from a country where you enjoy broad human freedom to one that’s restrictive – or vice versa.

The transition either way may be difficult. But having a Zookeeper can ease your integration and ensure you don’t do things wrong, impolite, taboo, or even unlawful.

The Heroes of Our Own Story: How Cultural Bias Enters into the Teaching of History

We all want to be the heroes of our own story.

And with this desire comes bias.

When entering a new culture, learning to read between the lines of what is taught about the culture’s history will help you better understand their cultural perspective

You may still agree with and believe in the historical interpretation of your own culture, but getting to the roots of another culture means getting to know their view of themselves, which is never more apparent than in their teaching of history.

This knowledge will give you insight into the “why” of cultural norms, values, and traditions in your host country.

To gain this knowledge, learning what is taught is important; but, sometimes, learning what is expressly not taught is even more so.

Russia and North America

“Back in the USSR…”

While it’s obvious that Russian and Western cultures view things differently, what may not be so obvious is their extraordinarily different interpretations of history.

North Americans often view their liberal values of freedom and individualism with pride, and that is reflective in their teaching of history.

They view Marxist ideals and communist values as restrictive on individual liberties and enterprise.

Russian history, however, is taught from a Marxist viewpoint.

It teaches that the American working class – and overseas labor from American corporations – is exploitative.

Like Americans, their view of their own history is also one of pride.

They present their communist system as more egalitarian, distributing wealth more fairly amongst the working class.

While American historians present Russia as oppressive, so do Russian historians present America.

And from an outsider’s perspective, if you’re being honest with yourself and viewing these arguments and their history objectively, you can see truth in both…however, you’re probably more biased toward the history that aligns with your own values and norms.

Japan and China

Japan and China are two other examples of nationalist takes on history.

The Japanese take pride in their long and glorious empire. However, the tragic recent history of WWII and the events surrounding it is often deemphasized in classrooms.

Mariko Oi, a Japanese teacher who studied abroad in Australia, puts this into perspective:

“Japanese people often fail to understand why neighboring countries harbor a grudge over events that happened in the 1930s and ‘40s. The reason, in many cases, is that they barely learned any 20th century history. I myself only got a full picture when I left Japan…” 

According to Oi, only 5 percent of her Japanese textbook (19 out of 357 pages) dealt with the recent history of WWII and the events that led up to it from 1931 to 1945.

A single line was dedicated to the Rape of Nanjing (also known as the Nanjing Massacre) which occurred during the Sino-Japanese war of 1937 when Japan invaded China. That war too was given but a single page.

On the other side of the East China Sea, Chinese students are taught in detail about Japanese war crimes and about the Rape of Nanjing in particular.

And as for other WWII enemies, the subject receives different treatment in American textbooks versus Japanese textbooks. 

The Manhattan Project is often heroically emphasized by American historians who detail the justifications for dropping the atom bombs on Hiroshima and Nagasaki.

In Mariko Oi’s Japanese textbook again, a single sentence is dedicated to this event.

Cultural Bias in Ourselves

The point of all this is that a nation tends to have a specific view of itself. 

And, in doing so, that nation will cast itself and its history in the best light while deemphasizing certain aspects that today bring shame. 

Cultural bias is difficult to recognize within ourselves. We’d like to think we’re “above” it.

But in the end, we all want to be “right”; we want our values to be right, our norms to be right, and our version of history to be right.

We want to be the heroes of our own story.