ABSTRACT
This chapter provides an overview and a discussion on elements, negotiation application, and limitations of cultural dimensions. International negotiation can be fraught with difficulties due to cultural, language and time zone barriers. Geert Hofstede, a Dutch researcher, developed a framework for cross-cultural communication in the early 1970s based on 100,000 questionnaires completed by IBM employees across the globe. Hofstede's original work looked at cultural dimensions, that is, a continuum approach with an opposing societal value at each end. The cultural dimensions are power distance index, individualism, uncertainty avoidance index, masculinity, and long term orientation. Hofstede himself stresses that the cultural dimensions are only a framework to help assess a given culture and thus provide for better decision-making. There are other factors to take into consideration such as personality, family history and personal wealth. The proposed dimensions cannot predict individual behaviours and do not take into account individual personalities.
