International Marketing in Germany – From a cultural perspective

2.3.2
 
Hofstede’s Cultural Dimensions 
Hofstede has been researching the impact of cultures within business and international 
marketing. He has identified four cultural dimensions, which describe how individuals in each 
culture behave and what business people have to consider and understand before they do 
business with another country and culture. 
The four cultural dimensions are power distance, individualism, masculinity and uncertainty 
avoidance and they are described further in the following text. A fifth dimension, long-
termism has later been introduced by Hofstede. This dimension will not be described further 
here, but under Trompenaars’ “Attitudes toward Time”
78
Terpstra, V., 
International Marketing,
(1987), p. 119 
79
Ibid, p. 131 

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Power distance index 
The first dimension that defines cultural differences according to Hofstede is power distance. 
It is according to Hofstede defined as following: 
“Power distance is a measure if the interpersonal power or influence between B 
(The Boss) and S (The Subordinate) as perceived by the least powerful of the
two, S.”
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This means how accepting the society is: that there is an unequal distribution of power within 
institutions. Inequality can be found within a few different areas such as between sexes, social 
status, prestige, wealth and power, but the degree of inequality differs.
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At work, hierarchy 
and inequalities are found in every relationship, e.g. boss – employee. In cultures with high 
power distance (Malaysia, Mexico and India), the employees accept inequalities and respect 
the different positions in the hierarchy. In cultures/countries with low power distance (Israel, 
Austria and Denmark), the employees see their boss as equal, and cooperate instead of only 
taking order. 
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