International Marketing in Germany – From a cultural perspective

Uncertainty avoidance 
Hofstede’s next dimension that defines culture is concerned with uncertainty avoidance. It is 
described by Hofstede as follows: 
“Uncertainty about the future is a basic fact of human life with which we try to 
cope through the domains of technology, law and religion. In organizations, these 
take the form of technology, rules and rituals”
83
 
The uncertainty avoidance index comprises three factors: rule orientation, employment 
stability and stress. In each culture the results of the values differ which gives each culture its 
own features. In cultures with a high level of uncertainty avoidance, for example Germany, 
Greece, Japan and France, people try to protect themselves with laws or company rules which 
they tend to follow in each situation.
84
Their achievement ambitions are likely to be low as is 
the belief in individual advancement. At the same time, there is a higher anxiety level, more 
worry about the future and higher job stress.
85
In countries with low uncertainty avoidance 
(Sweden, United Kingdom and Singapore), company activities are less formal and structured, 
managers take greater risk and job mobility is high.
86
Individualism 
The third cultural dimension according to Hofstede is named individualism. It is by Hofstede 
described as: 
80
Hofstede, G., 
Culture’s Consequences
, (1984), p. 70f 
81
Ibid, p. 65f 
82
Derensky, H., 
International Management
, (2006), p. 95f 
83
Hofstede, G., 
Culture’s Consequences, 
(1984)
,
p. 110 
84
Ibid, p. 110 
85
Ibid, p. 132f 
86
Ibid, p. 140f 

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“(...) the relationship between the individual and the collectivity which prevails in 
a given society. It is reflected in the way people live together, nuclear families, 
extended families, or tribes”
87
 
Individualistic behavior refers to when the individuals have an “I” consciousness, are self-
oriented, are taking care of themselves (knowing they have to) and act individually. The 
opposite – collectivism – is if they act as a group, setting the best of the group before the 
individual. Hofstede's findings indicate that individualistic countries are often wealthy with 
balanced power structure. Typical individualistic countries are United States, United 
Kingdom and Australia and typical collectivistic countries are Pakistan, China and Singapore. 
Individualism is found both in society and in organizations. In society, individualism can be 
found in the core family and collectivism in the extended family where grandparents and 
cousins are included.