Globalization and cultural change in international

business research
Bryan W. Husted
*
Tecnologico de Monterrey and Instituto de Empresa, Escuela de Graduados en Administracion y Direccion de
Empresas, Ave. Eugenio Garza Sada, 2501 Sur, C.P. 64849 Monterrey, N.L., Mexico
Abstract
The four articles in this special issue invite the reader to reflect on the impact of global business on
values, ideas, and ethics around the world. In this comment, I advance four arguments that question
assumptions regarding the impact of global business on culture. First, national cultures are not
homogeneous and the impact of globalization on heterogeneous cultures is not easily predicted.
Second, culture is not the same as cultural practice. The spread of practice does not equate with the
spread of culture. Third, globalization does not represent a rupture with the past but is a continuation of
prior trends. Fourth, globalization is only one of many processes involved in cultural change. By
questioning these assumptions, we can build on the work of the authors of this special issue in order to
develop a more accurate understanding of cultural change around the world.
D 2003 Elsevier Inc. All rights reserved.
Keywords: Globalization; Cultural change; Business
1. Introduction
When the Portuguese explorer, Alfonso de Albuquerque, arrived in Malacca, Malaysia, in
1511, he encouraged the marriage of the local Malay women with the Portuguese men.
Unknowingly, he was about to create a Creole culture referred to as the Kristang or
Christians, a community that survives to the present day, speaking an archaic form of
Portuguese, observing the Roman Catholic religion, and preserving many Portuguese
customs (ONeill, 2002). Neither truly Portuguese nor Malaysian, the Kristang represents
1075-4253/$ see front matter D 2003 Elsevier Inc. All rights reserved.
doi:10.1016/j.intman.2003.08.006
* Tel.: +52-81-8625-6146; fax: +52-81-8625-6098.
E-mail address: bhusted@itesm.mx (B.W. Husted).
Journal of International Management
9 (2003) 427433
an entirely authentic cultural expression related to, but different from, the original parent
cultures. Cultures inevitably change when they come into contact with other cultures, new
ideas, and different practices. This process of cultural change is a fact of social life.
This special issue looks at the impacts of globalization on cultural changes from several
different perspectives. A common theme is that globalization is an inexorable trend that is
worthy of study, regardless of whether its consequences are good or bad. There is a sense in
some of the articles that globalization is somehow different from processes of cultural and
social change that have taken place in the past. Globalization seems to be associated with
homogenization and standardization, at least at a cultural level. Somehow, we are becoming
more alike than different. Yet the experience of the Kristang in Malacca reminds us that
cultural and social change has always occurred. The key is to identify what is unique about
such change today.
Much of the work on globalization by international business scholars makes a series of
assumptions that need to be carefully examined. First, cultures are considered to be relatively
homogeneous. Second, culture is largely viewed as a practice, rather than the softward of the
mind as Hofstede (1997) calls it. Third, globalization represents a major rupture with the
way life is experienced by many people. Fourth, globalization is the single major force that is
shaping the cultures of industrialized countries today. In this comment, I would like to
examine these assumptions and then suggest some ways in which these assumptions may be
too limited and need to be relaxed.
2. Assumption 1: Cultures are homogeneous
Bird and Stevens (2003) and Amine (2003) share an assumption that cultures, both global
and national, are fairly homogeneous. However, this assumption is highly questionable.
Research indicates that national cultures usually represent the values and practices of the
dominant groups in society, and not of the marginalized (whether the marginalized groups
represent a majority or a minority in the society). In every society, there are many contested
issues. For example, polygamy in Muslim countries is accepted by the male population and
rejected by large numbers of women (Turiel, 2002). Such a result is not surprising as
polygamy serves the interests of men. Cultural values of high power distance support the
interests of the ruling class in a society. Collectivist values, which place priority of the group
over the individual, are in the interests of individuals who exercise power over groups.
Whether such values are widely shared within a society is an empirical question that needs to
be studied carefully.
If the picture of national culture is one of heterogeneity, what does globalization in the
sense of some sort of cultural standardization mean? Certainly, there are shared business
values and orientations around the world, just as there are probably shared concerns, values,
and orientations among mothers around the world or among schoolchildren or manual
laborers. But possibly, such similar values may be the result of a similar response to common
problems of similarly situated groups, rather than a result of the influence of one culture upon
another. For example, Haidt et al. (1993) found that the moral reasoning of college students in
B.W. Husted / Journal of International Management 9 (2003) 427433 428
Recife and Porto Alegre, Brazil, had more in common with college students in Philadelphia
than with that of low socioeconomic status groups in Recife or Porto Alegre. The similarity
appears to have more to do with class and education than with cultural homogenization
brought about by the influence of U.S. culture on Brazil. Globalization as cultural stand-
ardization may thus affect different subcultures within a given society differently, leaving
societies just as heterogeneous as before.
3. Assumption 2: Culture as cultural practice
There is no doubt that many cultural practices have spread around the world. Everything
from the internet and hip-hop to TQM are part of the daily lives of millions of people.
However, one must ask whether the adoption of a cultural practice is the same as the adoption
of a culture. In other words, is culture nothing more than cultural practice? For example, in the
US, there is a subculture called the Goths, noted for the black clothing they wear. As one
web page explained: Goth unashamedly celebrates the dark recesses of the human psyche.
Put the back of your hand on your forehead, and youre there: dark sensuality, sweeping
sadness, morbid fascination, forbidden love, the beauty of enduring pain, you get the picture
(Goth Primer, 2003). In Mexico, the Goths have arrived and are known as los Dark. They
take the English word dark because of their distinctive clothing. Do these Mexican Darks
have more in common with the U.S. Goths or with their Mexican relatives, friends, classmates,
or coworkers? They adopt the trappings and clothes of the Goths. They listen to the same
music and often can sing along with the English lyrics even though they do not understand
much of what they are hearing. Do the Mexican Darks accept the beliefs of the U.S. Goths? At
least from personal conversations with the few I have met, the answer is no. What does the
experience of the Goths tell us? Are we moving to a global culture? It seems unlikely.
What does seem to be occurring is the adoption of diverse fashions and styles across
cultures. In fact, global fashion has been around for a long time. You can find a similar
fashion in football soccer with young men in Cameroon and Canada adopting the haircuts
of international soccer legends. As a result, one can consciously adopt a cultural practice,
but joining a culture, if such a phrase makes sense, is much more difficult. Culture is
more subtle, oftentimes something of which we are not even aware. There are some things
that the U.S. business executive, the Goth student, or the African-American mother have in
common that make them more alike than unalikethey are all human and face the same
existential problems of human beings. It may indeed be possible to feel more attached to
people halfway around the world than to ones next-door neighbors, but it would be
difficult to feel more attached to people halfway around the world than to ones own
family, friends, work companions, or fellow members of community and religious
organizations.
Certainly, cultural practice is one level of culture, but it is at best a shallow level. It is not
the deep mental programming related to values about which Hofstede (1997) writes. If
globalization implies nothing more than a standardization of cultural practice, we are
speaking of globalization in only a very superficial sense.
B.W. Husted / Journal of International Management 9 (2003) 427433 429
4. Assumption 3: Globalization as a rupture
Throughout history, there have been movements toward integration and standardization as
Ricks (2003) and Clark and Knowles (2003) correctly acknowledge. The Roman Empire at
one point extended from what is now Portugal to Turkey and from England to Egypt. Latin
was spoken widely in the Mediterranean world. Many trends in fashion, art, architecture, and
music have transcended local boundaries to cross-continents. Baroque music was being
composed at the same time in Austria, Spain, and Mexico. Religions like Islam and
Christianity have had very significant integrating influences. Islam is currently Britains fast
growing religion, a consequence not only of immigration, but also of the conversion of
former Christians. In the sports arena, Federation Internationale de Football Association
(FIFA) operates in more countries than any other organization or group in the world.
Political ideas like liberalism and socialism have gone beyond their European origins to
affect nations around the world. Socialism emerged in the 19th century and its ideas swept the
world in the 20th century. Although many countries never elected socialist governments, the
movement left an indelible mark on labor policy and practice, even in the United States.
Earlier, in the 18th and 19th centuries, classical liberalism, largely born in France, swept the
globe and had an important impact on the rise of constitutional governments in Europe and
America. In this context, it is not surprising that the green movement is of global dimensions.
Even without increasing trade, the environmental problems of the planet would be severe. In
other words, some sort of transnational green movement would have emerged anyway
without the globalization of economic activity.
One significant difference between the current green movement and earlier labor move-
ments is that it is being carried forward more by nongovernmental organizations (NGOs) than
by political parties. The internet has accelerated communication, reduced transaction costs,
and made coordination of the efforts of thousands of environmental NGOs possible. So
globalization is not new, but the pace of globalization is.
5. Assumption 4: Globalization as the major force characterizing cultural change
Certainly, Ricks (2003) and Clark and Knowles (2003) agree that globalization has been
occurring for millennia, but if globalization were the only force acting on cultures, then we
would have arrived at McDonalds land long ago. Clark and Knowles (2003) speak to this
issue when they ask in what direction globalization is occurring and what factors inhibit
globalization. Globalization is counterbalanced by strong local influences. Primitive art has
existed and continues to exist around the planet. Local tunes and rhythms continue to be
played around the world. Despite the grand ideas mentioned earlier that transcend national
boundaries, politics continues to be dominated by local issues. Most global trends were
originally local practices.
Some local practices are attractive elsewhere and begin to diffuse. However, the
introduction of a foreign cultural practice in a new culture often results in hybridization.
Mickey Mouse is recognizable around Latin America, but is routinely adapted to the needs of
B.W. Husted / Journal of International Management 9 (2003) 427433 430
the local culture. For example, in Mexico, he often provides the shape for a birthday pinata
that little children beat mercilessly in pursuit of the candies that lie hidden in its interior. Yes,
the hamburger, with its origins in Germany, has become a mainstay of the U.S. diet and from
there has been exported to the rest of the world. However, the Mexicans take that same
hamburger and add guacamole and jalapeno chile so that it becomes something suitable for
the Mexican palate. Even McDonalds in Mexico provides customers with jalapenos. Is it a
hamburger? Yes, but many Americans would not be able to consume it.
Will tastes become global? Coca-Cola was in some sense lucky in creating a taste that
would find great appeal across cultures, but it is unlikely that the Brazilians will stop drinking
guarana or that the Mexicans will stop enjoying horchata. The world drinks a lot of Coca-
Cola and most of Coca-Colas income comes from outside the US. But how much actually
comes from Classic Coke or its progeny? Coca-Cola has seen sales of its traditional soft
drinks fall in Brazil since 1990. Most of the increased share has gone to the sweeter, low-cost
tuba nas developed and marketed by local entrepreneurs (Brandao and Sanches, 2002).
Coca-Cola has responded there and elsewhere by buying companies that compete in related
soft drink markets like orange, lemon-lime, and guarana. Its response hardly amounts to
evidence of a global culture but is a testament to the strength of local tastes.
In terms of a single worldview, the fact that information comes from a small group of
sources like CNN and the Wall Street Journal and that there exists agreement with respect
to important issues does not mean that we think similarly about those issues or about how
conflicts between values should be resolved. Moral reasoning ability is transmitted
through deeper forms of social learning than simple exposure to information sources
(Husted et al., 1996).
Possibly the greatest forces for a more similar worldview are the advancement of Islam and
Christianity around the world. However, the spread of these two religions has been taking
place for centuries. Here too, local diversity interacts with these practices. For example, many
Shiite Muslims in Iran practice temporary marriages that may last only one or two years as a
substitute for premarital sex, which is strongly condemned under Islamic law (Turiel, 2002).
In the Caribbean and Brazil, African deities worshipped by the slaves have been mixed with
Catholicisms saints to create santer a and macumba, a mixture of the two. Traditional
Protestantism has sent missionaries to Latin America and Africa for years. Yet it is a relatively
new form, Pentecostalism, which is sweeping those regions, in part, because it is more suited
to local preferences.
Ralston et al. (1993) have found a great deal of evidence for hybridization or cross-
vergence in values (Ricks et al., 1990). Crossvergence occurs when cultures come in
contact. For example, Ralston et al. (1999) found that northern Vietnamese managers were
more individualistic than their southern Vietnamese counterparts. This somewhat surprising
result is due in part to the influence of the greater levels of trade between the northern
Vietnamese and cosmopolitan Chinese merchants who are more individualistic. The authors
conclude that emerging market countries tend to develop hybrid forms that integrate
traditional cultures with new economic ideas (Ralston et al., 1999).
Finally, even if globalization occurs and one group adopts the cultural practices of another
group, that adoption implies a difference. When the Kristang adopted Portuguese practices
B.W. Husted / Journal of International Management 9 (2003) 427433 431
and customs, their attitude towards an idealized Portuguese culture distinguished them
from the attitudes of the Portuguese toward their own culture (ONeill, 2002). The adopted
practice can never mean the same thing to the adopting culture as it did in the original culture.
Thus, an adopted practice however, similar to the original practice, remains different, making
a true culture standardization very difficult, if not practically impossible.
6. Conclusions
This special issue on globalization asks the reader to reflect upon the meaning of
globalization and its impact on culture, ethics, and green thinking. Yet, as I have tried to
show in this comment, globalization, localization, and hybridization are complex and
interrelated phenomena that must be examined simultaneously. New communication tech-
nologies are undoubtedly bringing much of the first world and other elites into greater and
more frequent contact, while leaving most of the two-thirds world behind. I am skeptical that
the elites, which enjoy the use of these technologies, will share more than a few global culture
practices and fashions. We are a long way from shared values and reasoning.
Rather than being a new phenomenon, globalization is a continuation of an old process of
cultural change that has taken place for millennia. As a result, we need to ask how is
globalization different from past experiences with cultural change. For example, in terms of
the green movement, a number of interesting questions might be asked. To what extent does
globalization add to environmental problems, beyond industrialization and demographic
pressures on scare natural resources? What do we add to the discussion of the environmental
or any other transnational movement by using the concept of globalization?
Clearly, all cultures are changing and we need to study the influences and the foster
change or cause resistance to different patterns of change. A clearer understanding of these
forces is essential to the businessperson who desires to engage responsibly with international
markets. But we should not be overly enthusiastic supporters of a concept, like global-
ization, without subjecting it to very critical analysis. By sharing several different
perspectives on globalization, this special issue makes an important contribution to
achieving that goal.
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