Culture and network institutions in Hong Kong: a hierarchy of perspectives. A response to Wilkinson: 'Culture, institutions and business in East Asia.'

Organization Studies, Spring, 1998 by Sid Lowe

Is Barry Wilkinson suggesting that there is no connection between cultural values and social structures? The support for a connection between the two is compelling (Archer 1996; Lowe 1996) and Wilkinson's selective reference to Wong and Birnbaum-More (1994), reporting their failure to find empirical evidence supporting linkages between values and structure (Wilkinson 1996: 425), does not mean that linkages are not there. The 1994 study appears to confirm the association of Hofstede's Power Distance and the Aston Group's 'authority' construct, but failed to confirm an association of Uncertainty Avoidance and 'structural differentiation' (Wong and Birnbaum-More 1994). The latter finding would be expected, as Uncertainty Avoidance has been identified as irrelevant to Chinese 'minds' (The Chinese Culture Connection 1987; Bond 1988).

Wilkinson describes the 'fifth' dimension of 'Confucian Dynamism' identified in the study of Michael Bond and The Chinese Culture Connection (1987) as a Confucian work 'ethic'. It has much more significance than this, as the study shows, using the nomothetic methodology of Hofstede to analyze 'etic' (generalizable, universal) 'phenomenological' (preferred, desired) values, that Uncertainty Avoidance is not relevant to the Chinese. Bond and his colleagues were concerned that Hofstede's four dimensions were constructed solely by Western researchers, and devised a values survey using Chinese researchers. The CVS is directly relevant to Hong Kong as it identifies 'Confucian Dynamism', which principally relates to the degree of 'long-termism' inherent within a society. This dimension was named in this way since the research indicates that societies influenced by Confucianism (such as China, Hong Kong, Taiwan, Japan and Korea) all share markedly high degrees of long-termism, relative to all other countries. Hofstede points out that the Chinese Values Survey resulted in the identification of three out of four of the dimensions identified in his own 4-D study. None of the CVS factors, however, were correlated with Uncertainty Avoidance. This is explained as a fundamental difference between Western and Eastern (particularly Chinese) cultures, which means that Western cultures have a fourth dimension (Uncertainty Avoidance) related in different degrees to the search for 'Truth', whereas Chinese societies are more concerned with 'Virtue'. This means that Uncertainty Avoidance is not a universal 'etic' value dimension, since it has been shown to be irrelevant for the Chinese. The alternative 'emic' Chinese value dimension to the Uncertainty Avoidance of Confusion Dynamism means that the Chinese tend to respond differently from the rest of the world to their uncertain environment.

One implication is that this is one of the 'key features' (Redding 1990: 12) or fundamental reasons contributing to the relative success of countries in the Pacific Rim influenced by Chinese culture because: ' By showing the link between Confucian Dynamism and recent economic growth, the CVS research project has demonstrated the strategic advantage of cultures that can practice Virtue without a concern for Truth' (Hofstede 1991: 172). It may also be that 'Confucian Dynamics' is an inappropriate label for this dimension, since Confucian values are evident in both opposing poles and the term negates the contribution of other influences such as Taoism and Buddhism. Hofstede's adapted term for this dimension is Long Term Orientation (LTO). Its suggested significance in terms of comparative advantage is in cultivating a pragmatic synthesis in management, where, it seems: 'What is true or who is right is less important than what works and how the efforts of individuals with different thinking patterns can be co-ordinated towards a common goal' (Hofstede 1991: 172). This dimension also emphasizes the inherent virtues of respect for tradition and ordered social structures based on status. The Chinese dimension of 'Human-heartedness' on the CVS correlates (negatively) with Masculinity and is characterized by values of kindness, courtesy and social consciousness. 'Integration' correlates (negatively) with Power Distance and is characterized by the cultivation of trust, tolerance and friendship. 'Moral Discipline' correlates (r = 0.54) weakly with Collectivism and is characterized by group responsibilities as well as moderate, adaptable and prudent behaviour (The Chinese Culture Connection 1987). The elements of the 'CVS' dimensions are shown in Table 1.