Business culture of Taipei: Hofstede’s cultural analysis

  

1.0.        Introduction

For businesses, the global open market and resulting increase in globalization offers opportunity for companies to internationalize, reach mew markets and further enhance their performance. Numerous MNEs such as Coca-Cola and Toyota have down that taking advantage of these opportunities can ensure sustainable overall performance of businesses. However, one must acknowledge the fact that while internationalization could be easy for the MNEs due to their financial capabilities, running businesses successfully across these different markets present huge challenges and cultural differences are good examples of such challenges. In this essay, a review of Taipei, a city in Chinese Taiwan is presented in terms of the cultural differences that businesses seeking to open a subsidiary in this region will need to know.

2.0.        About Taipei city

Taipei is a city in Taiwan, and is located in the northern part of the country, which include the northeastern part of the Taipei basin and the hilly region that surrounds (Taipei City Government, n.d.). There are twelve administrative districts in the city, with the Daan, Songshan, and Datong districts as the most populated and the least populated being the Beitou district. The city is the home to numerous ethnic groups like aborigines, Minnans, Hakkas, mainlander, and immigrants and expats that now reside in the city (Taipei City Government, n.d.).

3.0.        Business culture of Taipei: Hofstede’s cultural analysis

In accordance with the Hofstede’s cultural analysis, power distance is described as the extent to which the less powerful members of a society expect and accept that power are not distributed equally. Taipei has a high level of power distance, which is an indication that it is a hierarchical society. In the organization, subordinates expect to be told what to do and boss in this society are benevolent autocrats. Individualisms-vs-communism represents the degree of interdependence that a society maintains among the members of such society (Hofstede Insight, n.d.). Taipei is low in individualism and as such is described as a collected society.  In the business setting, offence bring about shame and loss of face, and the relationship between employers and employees are considered a moral link (more like the ones among family members). Thus, hiring and promoting employees is based on in-group management. Masculinity-vs-feminism the basic concept here is what motivates people, wanting to be the best (masculine) or being contented with whatever one undertakes (feminine) (Hofstede Insight, n.d.). Taipei is considered a slightly feminine society. Thus, the business world sees employees working in order to live, while manages strive to ensure consensus. Equity is valued together with solidarity and quality amongst the workers. Conflicts are addressed through negotiation and compromise. Uncertainty avoidance is described as the extent to which members of a given culture do feel threatened by unknown or ambiguous situations and create institutions and beliefs that they utilize in order to avoid such uncertainty (Hofstede Insight, n.d.). Taipei is high in dimension and as such there is an emotional need for rules as time is money. There is an inner desire by people to work hard and be busy, punctuality and precision are vital, security is important but innovation might be resisted. Long-term orientation is described as how a society has to maintain link with its own past in the course of handling challenges that are presently and in future (Hofstede Insight, n.d.). Taipei is high in this dimension and such pragmatic. Business are done with focus on long-term sustainability. Finally, indulgence is the extent to which people try to control their impulses and desire (Hofstede Insight, n.d.). Taipei has a middle score in this and doesn’t include dominance in this dimension.

4.0.        Conclusion

In conclusion, any decision to open a subsidiary in Taipei must put into consideration the cultural differences discussed above (eDiplomat, n.d.).

References

eDiplomat, n.d. Taiwan. [Online]
Available at: http://www.ediplomat.com/np/cultural_etiquette/ce_tw.htm
[Accessed 8 10 2017].

Hofstede Insight, n.d. Country Comparison: Taiwan. [Online]
Available at: https://www.hofstede-insights.com/country-comparison/taiwan/
[Accessed 8 10 2017].

Taipei City Government, n.d. About Taipei City. [Online]
Available at: http://english.gov.taipei/np.asp?ctNode=8438&mp=100002
[Accessed 8 10 2017].