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.

Is It Worth the Risk?: Different Cultural Takes on Risk Perception

Are some cultures greater risk-takers than others?

This study dove in to find out.

Analyzing the data of respondents from Germany, Poland, the US, and China, the study measured respondents’ risk preference for pricing financial options.

These are their findings.

Hypothesis

Studies have shown a correlation between a culture’s position on the individualism-collectivism scale and its risk preference.

Called the Cushion Hypothesis (Weber & Hsee, 1998), the theory suggests that those from collectivist cultures are more likely to take financial risks.

Why?

Due to the perceived support from their collectivist culture and, thus, the reduced negative consequences such a risk might have on the individual.

While this study did arrive at the same conclusion – that the collectivist society of China was less risk-averse than its American counterpart – it did identify a more specific reason for it.

Risk-Averse

The majority of respondents in all four cultures were identified as risk-averse (i.e. they were willing to pay more for options they saw as “less risky”).

When you look at a risk-return conceptualization, it is natural that most people, no matter what culture, would perceive risk this way.

When risk preference was evaluated in the traditional expected-utility framework, Chinese respondents were considerably less risk-averse in pricing than Americans.

But what this study found was that the difference in risk preference may not be due to a cultural attitude toward perceived risk; instead, it appears largely due to the perception of the financial options’ risk itself.

Chinese participants simply did not find the options as risky as their counterparts.

Conclusion

The study states:

“Chinese respondents were closest to risk neutrality in their pricing of the financial options and judged the risk of these options to be the lowest, but were not significantly less perceived-risk averse.

“American and Germans offered the lowest prices and also perceived the risk of the options to be highest, but were not significantly more perceived-risk averse.”

One might practically apply this knowledge to commerce and negotiation when working across these particular cultures, affording both negotiators joint gains.

The study concludes that while cultures do vary on a collectivism-individualism continuum which undoubtedly impacts perceived risk, other cultural factors in risky decision-making – locus of control, differences in achievement motivation, etc. – may also come into play in risk preference.

Further studies into the subject might provide more insight.

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.

Ethnocentricity: When Subjective Bias Enters Cross-Cultural Research

Culture has a four-corner foundation.

To recap, the four main building blocks are:

These four categories, in particular, will not only aid your understanding of cross-cultural differences, but they’ll allow you to adapt your managerial methods when leading across cultures.

Below is an overview of these four building blocks.

monkey_charts_CMYK

 

As you can see, countries are scattered across the scale from left to right, accordingly. But one of these countries remains in place.

The United States.

The US always appears on the far left of the scale.

Why?

Because of ethnocentricity.

What is Ethnocentricity?

Ethnocentricity involves judging other cultures based on the values of your own.

Even great researchers, like Geert Hofstede, haven’t managed to design a purely objective framework in their studies on cross-cultural differences.

Their own cultural heritage inevitably appears in their research via charts like this one and through constant comparisons (and often biases) between their own culture and “the other.”

Simply put, the values and standards we find most important to our own culture are often what we deem worthy of study and comparison.

Religion, norms, language, customs, ideology – these are the attributes we compare in order to understand cultural identity. And, whether or not the intention for bias is there, those conducting the study determine their culture to be “right” and the other to be “wrong.”

Although ethnocentrism may sound wholly negative, it is psychologically innate.

The US vs. China

Let’s look at an example.

When cross-cultural research is done from an American viewpoint, individualism is often a highly valued criterion.

Moreover, the future-oriented, rule-oriented, and self-determined United States swing their bias of time valuation, personal vs. societal responsibility, and locus of control in the relative directions.

These “typically American” values force the U.S. to the far end of a spectrum of the four building blocks of culture, as these are important values to Americans and are highly considered when categorizing cross-cultural research.

If, say, China was conducting the same research, their spectrum – and where they landed on the spectrum – would undoubtedly differ.

China would evaluate other cultures according to their own valued criteria.

These criteria would likely have roots in collectivist, rather than individualist ideology. The way other cultures relate to their own values would form the subjective and ethnocentrist results that cross-cultural research often takes on.

Next week, we’ll delve more deeply into ethnocentrism and discuss how it directly manifests in cross-cultural research.

Does Individualism Drive Economic Development?

It’s the age-old question: do individualist cultures see more economic success than collectivist cultures (e.g. capitalism vs. socialism)?

We’ve mentioned how individualism vs. collectivism is one of the most important (if not the most important) of Hofstede’s cultural dimensions. The degree to which a culture lies along this scale can determine much of the culture’s values and norms.

The West (the US and European countries, in particular) believes that economic development is fueled by individualism.

Is that the case?

The “Spirit of Capitalism”

Adam Smith, the author of The Wealth of Nations (considered “the Bible of capitalism”), wrote that the economic model of the West is rooted in the individual’s aspirations and initiative to earn money, build his career, and elevate his social standing.

He writes:

“The real tragedy of the poor is the poverty of their aspirations. It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest. Man is an animal that makes bargains: no other animal does this – no dog exchanges bones with another.”

And he wasn’t the only economist to believe so. Economist Max Weber coined the phrase the “spirit of capitalism,” which embodied the entrepreneurial spirit of the West, the desire to climb the social ladder and build a career, all of which was once believed by some to be the sole method of driving economic success.

However, as we discussed in a previous post, Japan disproved this theory by demonstrating that a collectivist culture, with its own values and norms, can boom economically as well.

Apart from the “Japanese Miracle,” business models like Kaizen’s steps to improvement and the quality circle provide positive outcomes and follow collectivist values.

The Lexus

An example of collectivist culture contributing to economic success:

I was invited to a presentation of the Lexus, a luxury Japanese car brand. The production process involved a unique manufacturing method put in place to guarantee top quality.

The car bodies were mounted in a large hall and transported along an assembly line of steps, in which each worker had his/her own task, like welding or screwing parts to the vehicle. A string hung from the ceiling at each step, allowing workers to stop the entire assembly line production if necessary.

Of course, pulling that string costs the company a fortune. But not doing so, if there is a quality issue, could cost them even more…and might even ding their reputation if left unchecked.

So, despite the costliness of pulling that string, when an assembly worker makes that decision, he’s greeted with cheers.

Why?

Because he took a bullet for the team, stepped up and disrupted the workflow, hopefully with reason. Nevertheless, the worker isn’t punished for putting quality over cost, which is why Lexus has a reputation for reliability.

In this way and many more, Japan has demonstrated that an individualist culture is not required for economic development. Both collectivist and individualist cultures have their strengths.

Next week, we’ll talk about the driving factor behind economic success in either type of culture.

Understanding Cultural Values: With What “Group” Does Your Culture Identify?

Some cultures most identify with their nationality. Others their church. And still others, their family, tribe, or even workplace.

We’ve discussed collectivism in this blog and the mentality of society over self or group over individual.

But of what “group” are we speaking?

In order to better understand the values and norms of a culture, identifying the group with which a culture most closely identifies is essential.

Let’s take a look at some examples.

Who is Your Group?

  • The Irish culture strongly identifies with religion, the Roman Catholic Church.
  • The former Eastern Bloc identifies with Slavic ideals and the party.
  • The French identify with their country, which they call “la grand nation.”
  • The Japanese identify with their company and workplace.

While these are all generalizations (after all, not everyone falls in line with societal values and norms), these broad strokes do highlight the roots of the cultural baobab.

Group identity is flexible. And this is not to say that other groups in said societies are not important.

Family, after all, is important in nearly every culture, and there are other in-groups – like subcultures and company cultures – to which individuals of any society might feel strong ties.

But when trying to understand a culture as a whole and what makes that culture tick, identifying the group that most often defines or impacts the mechanics of society as a whole is essential.

Collectivist vs. Individualist

Group identity, social responsibility, and interdependence are values emphasized in collectivist cultures.

Individuality, self-fulfillment, and independence are those emphasized in individualist cultures.

One wants to fit in.

The other strives to stand out.

One sees conformity as negative.

The other sees singularity as deviant.

As one of Hofstede’s Cultural Dimensions, the scale between collectivist and individualist cultures is just that – a scale. No culture is at the polar extreme, one way or the other.

There are elements of collectivism and individualism in every culture.

And sometimes, these elements are surprising.

We’ll talk about that more next week.

Differences in Values & Norms Between Multi-generational vs. Two-generational Family Structures

The values and norms of traditional societies versus modern ones are vastly different.

As we’ve previously discussed, while it’s unlikely that a business will ever directly negotiate a contract or deal with a remote population, the knowledge that these fundamentally different values and norms exist is important.

Because if there’s one thing I want you to take away from this blog, it’s this: there’s no “correct” or “superior” way of living; there are only different ways.

Just like your own values and norms, others’ serve a purpose. They may serve either a deep ideological purpose or a more practical one, but purpose is there.

Consider the Purpose

As mentioned in a past post, the Western culture’s idea of family structures is evolving; the modern patchwork family is becoming a norm.

Renowned anthropologist, Marvin Harris, wrote:

“In view of the frequent occurrence of modern domestic groups that do not consist of, or contain, an exclusive pair-bonded father and mother, I cannot see why anyone should insist that our ancestors were reared in monogamous nuclear families and that pair-bonding is more natural than other arrangements.”

Opening up our generalized concept of “normal” family structures can help us more thoroughly understand other cultures.

Consider the purpose that creates the values and norms surrounding these structures and what this purpose might indicate about the broader culture.

Two-Generational vs. Extended

Anthropologists identify differences between two-generation families and extended-generation families.

In the West, when politicians spout slogans in defense of “family values,” the family in question is one of two generations.

That is the nuclear family – the mother and father and their children – as well as divorced families, patchwork families, one-parent families, and unmarried parents. Despite the latter’s complexity, they’re also two-generation families.

However, in other cultures, values and norms centered around extended families – or those of at least three generations – are more common.

Extended families include grandparents on both sides, aunts, uncles, cousins, nieces, nephews, and any other kin of the husband and wife.

This valuation of extended families is more prevalent in the world than the Western concept of two-generational families.

Societies that value extended families are typically built on collectivist values, while those that value two-generational families are built on individualist values.

Extended family societies ensure broader social cohesion, communities that are interconnected in order to ensure survival, and the value of personally caring for the aging population.

We’ll talk more about the link between how societies define “family” and the cultural values that determine that definition later in this blog.

But for now, know that more often than not:

  • Two-generational societies = individualism
  • Multi-generational societies = collectivism

As you move forward in reading the blog over the next few weeks, consider what purpose your own values and norms serve. Consider how they might be viewed from the outside, looking in. Only then will you be able to look at other cultures through their own cultural lens.

The Roots of the Baobab: The Invisible Part of Culture

The upper baobab – the above-ground part of culture – is what cultural books and guides often cover.

Pick up any book on the business culture of any single European nation, and you’ll find greatly detailed lists of behaviors, dress, etc. – you know, the visible parts of culture we talked about last week.

But the baobab’s canopy is only part of the magnificent tree of life. Buried below the African soil, the roots branch out into an enormous structure that you cannot see; one that is even more important to cross-cultural integration.

Invisible to the Naked Eye

Just as the roots of the baobab are hidden extensions of the tree of life, the roots of a culture are often hidden too.

But it’s worth digging up the soil to examine these roots in order to understand why certain cultural behaviors exist and how they developed.

If you’re working in a cross-cultural environment and/or immigrating to a foreign land, it’s pretty clear why this understanding is important. It’s only when you understand a culture’s underlying values that you will be able to accept and adapt enough to integrate into the culture.

baobab

The Swiss

For instance, the Swiss are punctual. This is demonstrated in their behavior. This “always on time” mentality is the above-ground baobab – the visible part of culture.

What are the roots – the invisible part?

The Swiss’ values are. The culture’s concept of time is the invisible part. Time is valued in Switzerland, and that valuation is made manifest in the general behaviors of society.

The American

Another example: Americans are self-promoting. They are not often modest about their success, and some often display it or announce it, so that others know just how successful they are.

“Part of the beauty of me is that I am very rich.” – Donald Trump, March 2011, in an interview with Good Morning America

Self-promotion is one branch of their above-ground baobab, the visible part of their culture.

And the invisible part?

Individuality is deeply ingrained in American values. It extends in the roots beneath the earth which grow into the branch of self-promotion. Being able to “stand out” in some way – be it with wealth, accomplishment, or success of any kind – is an integral part of American culture.

The Roots Grow

In any cultural baobab, the wispy branches (folkways), the sturdier branches (mores), and the trunk (taboos, laws) all grow from these well-watered roots of a culture’s values.

Values create a culture’s behaviors, norms, and traditions in a way that is not always obvious. But if you look closely enough at a culture, you can better understand how its norms and values are tied. Arriving at this understanding will greatly aid you in cross-cultural integration.

Cultural Norms: What are They? And How Do They Relate to Values?

Conformity.

Last week, we talked about conforming to cultural norms. But what types of norms are we conforming to? And why and how are we conforming?

Well, to understand norms, first we must talk about values.

Values are what define a culture’s goals and ideals, and cultural norms are, in a way, these values, personified.

Values & Norms

Study.com defines norms relative to culture, thusly: “The term ‘culture’ refers to attitudes and patterns of behavior in a given group. ‘Norm’ refers to attitudes and behaviors that are considered normal, typical or average within that group.”

So, norms are more closely related to our behaviors, while values are more closely related to our attitudes, ideals, and beliefs. Both our values and norms are ingrained in us and in our society through its existing systems, such as family, the education system, and government.

The government and other higher institutions define a nation’s values, while the norms and values are implemented and taught by families and schools. Some degree of conformity in these two areas is expected in every culture. The degree of conformity is often based on survival vs. self-expression values, but conformity always defines cultural norms.

And we are often completely oblivious to the influences of both values and norms in the way we live our lives.

Different Norm Types

There are four different types of norms, which we will detail over the coming weeks.

These are:

norms

The majority culture in any nation invokes these expectations and rules, which are primarily based on their values. Behavior – such as habits, customs, traditions, and rule of law – is guided by the most prominent culture; they create the yardstick of what is considered “right” and “wrong” on the whole.

Swimming With/Against the Current

Do you follow your own culture’s norms? Do you swim with the school of fish? Or do you make a point of standing out from the crowd?

Whether you swim with or against the current, you’re making choices in defiance of your society’s values and norms, or you’re making choices in favor of them. Either way, your individuality is defined by the cultural norms of your society.

Remember, if you want to “fit in” to a foreign culture, you can look at norms as a sort of etiquette guidebook for the culture in which you choose to integrate.

Cultural Norms: Do You Conform?

Do you shake hands upon greeting? If so, do you use the right or the left? Is there a reason for this?

Do you smile a lot? Is it normal to smile at strangers in your culture? Is politeness valued?

Whether you answered ‘yes’ or ‘no’ to any of these questions, the answers are relative to the norms that exist in your culture.

Are we all susceptible to cultural norms, and are you conforming to them right now?

Conformity

Conformity is expected in most cultures, but the degree of conformity is often based on the strength of a culture’s survival values vs. its self-expression values.

However, even in cultures where self-expression values are strong, individuals feel pressure to conform to some degree.

Does everyone, then, conform to norms?

It’s almost impossible not to. In the end, the degree to which one does depends on if an individual wants to ‘fit in’ or not.

Solomon Asch Study

In 1951, Solomon Asch experimented with societal pressure and its relation to conformity. Asch gave 50 male students from Swarthmore College a ‘vision test,’ in which one oblivious tester was placed amongst seven trained testers who had prepared their responses beforehand.

The students were given three lines (A, B, and C) to compare, and they had to choose which was the ‘target line.’ The answer was always obvious. Each of the trained participants would state their answer aloud, with the real participant answering last.

Of the 18 trials, the prepared group gave 12 wrong answers. What Asch found was that nearly a third of real participants conformed to the majority view, despite the fact that the majority was quite obviously wrong, with around three-fourths conforming at least once.

Only a quarter of the real participants didn’t conform at all to the wrong answers. In the control group (a group with all real participants), less than 1% answered incorrectly.

Why Conform?

In their post-experiment interviews, real participants admitted that they didn’t agree with the answers of the crowd.

But they conformed to them anyway.

So, why are we so inclined to conform with something we think is wrong?

The participants expressed a fear of being thought peculiar or of being teased by their peers. Some also said that, due to the majority view, they considered that perhaps they were mistaken in their answer. The probability that an entire group answered incorrectly seemed less likely than that they were wrong.

These results show that people conform because:

  • They want to fit in
  • They believe a group must be better informed than an individual

These are called normative and informational influences, respectively. And, in essence, they are what enforce a society’s values and norms.

Next week, we’ll talk about different types of cultural norms and what this conformity looks like. Stay tuned.