Cultural Literacy and Competitive Advantage
• Need for managers to develop cross-cultural literacy
• Connection between culture and national competitive
advantage
• Connection between culture and ethics in decision making
©McGraw-Hill Education
• Focus on Managerial Implications 2
Cultural Literacy and Competitive Advantage continued
Cross-Cultural Literacy
• Firms that are ill-informed about practices of another
culture are unlikely to succeed in that culture
• Beware of ethnocentric behavior
• Belief in the superiority of one’s own culture
©McGraw-Hill Education
• Focus on Managerial Implications 3
Cultural Literacy and Competitive Advantage continued
Culture and Competitive Advantage
• Connection between culture and competitive advantage
• The value systems and norms of a country influence the costs of
doing business in that country
• The costs of doing business in a country influence the ability of
firms to establish a competitive advantage
• Key points
• The connection suggests which countries are likely to produce the
most viable competitors
• The connection has implications for the choice of countries in
which to locate production facilities and do business
©McGraw-Hill Education
• Summary
In this chapter, we have
• Explained what is meant by the culture of a society.
• Identified the forces that lead to differences in social
culture.
• Identified the business and economic implications of
differences in culture.
• Recognized how differences in social culture influence
values in business.
• Demonstrated an appreciation for the economic and
business implications of cultural change.
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