1. EXPLORING LATIN AMERICA
Implications for German Companies
using Spain as a Springboard Country
Ofiar Murwanti | Rohit Prabhudesai | Ang Boon Chuan | Eka Prawijaya

2. Agenda
• Introduction to Research Topic
• Cultural Models
• Methodology
• Findings
• Recommendations

3. Can Spain be a Springboard Country
for German companies entering Latin America?
?
(Koeppen 2012; Pavoncello 2011)
?
(Winiecki 2012)
Cultural adaptation issues
(Ewing and Bajaj 2011; Parnell 2002; Rygl 2012; Selmer 2001, Selmer 2005, Zimmermann, Holman and Sparrow 2003)
Eurozone ties
Cultural proximity
Growing influence
Opportunities in Latin America
(Long 2013; Molinski 2013)

4. Need for Springboard Country
(Penny 2013; Pla-Barber and Kamps 2012)

5. Cultural Models
Dimension Description
Power distance
Extent to which individuals are separated by power,
authority and prestige
In-group collectivism
Extent to which individuals are proud and loyalty
towards families, organizations and employers
Institutional collectivism
Extent to which individuals are identify and work with
groups at the expense of individual freedo
Uncertainty avoidance
Extent to which individuals value structures, rules and
consistency
Future orientation
Extent to which individuals look towards future
benefits at the sacrifice of immediate gratifications
Gender egalitarianism Extent to which individuals support gender equality
Assertiveness
Extent to which individuals are confident,
confrontational and aggressive
Humane orientation
Extent to which individuals treat others with fairness,
care and kindness
Performance orientation
Extent to which individuals value and reward
performance
HofstedeModelofNationalCulture
(Hofstede1980)
GlobalLeadershipand
OrganizationalBehaviour
Effectiveness(GLOBE)Study
(Javidan,etal.2005)
Lewis Model of Cross-Cultural Communication
(Lewis 2013)
Multi-Actives
Re-Actives
Linear-
Actives
Discourse
oriented
Listening
oriented
Information
oriented

6. Methodology
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PDI
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Latin
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nIDV
IDV
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Latin
n
nMAS
MAS
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Latin
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nUAI
UAI
Formulae to compute Hofstede dimensions
Country Weighted Total
PDI IDV MAS UAI PDI IDV MAS UAI
Argentina South America 40,117,096 49 46 56 86 1,965,737,704 1,845,386,416 2,246,557,376 3,450,070,256
Bolivia South America NA Not available - - - -
Brazil South America 201,032,714 69 38 49 76 13,871,257,266 7,639,243,132 9,850,602,986 15,278,486,264
Chile South America 16,634,603 63 23 28 86 1,047,979,989 382,595,869 465,768,884 1,430,575,858
Colombia South America 47,252,000 67 13 64 80 3,165,884,000 614,276,000 3,024,128,000 3,780,160,000
Ecuador South America 15,580,300 78 8 63 67 1,215,263,400 124,642,400 981,558,900 1,043,880,100
Paraguay South America NA Not available - - - -
Peru South America 30,475,144 64 16 42 87 1,950,409,216 487,602,304 1,279,956,048 2,651,337,528
Uruguay South America 3,286,314 61 36 38 100 200,465,154 118,307,304 124,879,932 328,631,400
Venezuela South America 28,946,101 81 12 73 76 2,344,634,181 347,353,212 2,113,065,373 2,199,903,676
Cuba Caribbean NA Not available - - - -
Dominican Republic Caribbean NA Not available - - - -
Haiti Caribbean NA Not available - - - -
Honduras Caribbean NA Not available - - - -
Puerto Rico Caribbean NA Not available - - - -
Costa Rica Central America 4,667,096 35 15 21 86 163,348,360 70,006,440 98,009,016 401,370,256
El Salvador Central America 6,183,000 66 19 40 94 408,078,000 117,477,000 247,320,000 581,202,000
Guatemala Central America 15,438,384 95 6 37 101 1,466,646,480 92,630,304 571,220,208 1,559,276,784
Mexico Central America 118,395,054 81 30 69 82 9,589,999,374 3,551,851,620 8,169,258,726 9,708,394,428
Nicaragua Central America NA Not available - - - -
Panama Central America 3,405,813 95 11 44 86 323,552,235 37,463,943 149,855,772 292,899,918
Country Region Population
(Gelman 2007; Kish 1990)

7. Results

8. Data Validation
Translate
quantities to
description
Verify against
qualitative
descriptors
Generalization
Based on 3 countries with
close values in 4 cultural
dimensions
Compare against
descriptors in GLOBE
Study and Lewis Model
Descriptions converged
across all models

9. Findings and Analysis
Culture
PowerDistance
Individualism
Masculinity
Uncertainty
Avoidance
Assertiveness
Humane
Orientation
Performance
Orientation
InteractionStyle
German Low High High High High Low High Information
oriented
Spanish High Low Low Higher Low High Low Discussion
oriented
Latin American Higher Lower Varied High Low High Low Discussion
oriented
Legend
Cultural leap Cultural bridge Cultural equality(Antshel 2002; Cuéllar, Arnold and Gonzalez 1995; Delgado 1994; Gupta, Hanges and Dorfman 2002; Johanson and Vahlne 2009;
Lenartowicz and Johnson 2003; Soyez 2012; Varela, Salgado and Lasio 2010)
Legend
Cultural leap
Cultural bridge
Cultural equality

10. Organization Report Structure
German
HQ
Colombia
Country
Manager
Mexico
Country
Manager
Spain
Country
Manager
Decentralized channel of communication
Latin-centric communication of corporate objectives
Better local receptiveness
Enhanced relational day-to-day liaison
Risk of miscommunication

11. Staffing Strategy
Pioneer Intelligence
Trader Defender
Roles of Country Manager
Intercultural training minimizes expatriate failure
(Domsch and Lichtenberger 1991; Osman-Gani and Rockstuhl
2009; Qin and Baruch 2010; Waxin and Panaccio 2005)
Little effect on German expatriates
(Puck, Kittler and Wright 2008)
Expatriation

12. Management Mindset
Country Manager Fatherly Figure
Authority &
Organizational
Control
Social gaps
Limited individual feedback to avoid conflict
Working group communication and dialogue
(Behrens 2010; Martinez 2005)
Socialintegrationin
collectivistandegalitariansociety
Building local association, teamwork, social identity and communitarianism
(Höglund and Sundberg 2008; Jarvie 2003; Moss 2009; Perks 2007; Schlüter 2000; Stevenson and Alaug 1997; Tonts 2005)
Cerveza
Sports Dance

13. References
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16. THANK YOU
Any questions?