University of Vaasa - Vaasan yliopisto

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power is distributed unequally. Power distance explains the behaviour of individuals
in reaction to differences in physical and intellectual capacities which could be
translated to power, wealth and status. In this research, the power distance from the
organizational point of view and consequently the state condition is looked at. From
the perspective of organizations, especially in relations between boss-subordinate,
Hofstede’s (2000) research proves that Danish corporations have a lower power
distance in comparison to Chinese corporations. Societies with small power distances
such as Denmark emphasize on equal rights of which skills, wealth, power and status
need not go together. On the other hand, China, showing a large power distance, is
the exact opposite, in which the person with power is perceived to be right and they
also have special privileges.
(ii) Individualism vs. Collectivism
Individualism and its antonym collectivism, is about whose interest takes precedence;
is it the interests of the individual or is it the interests of the group as a whole?
Hofstede (1991) defines this dimension as follows: Individualism pertains to
societies in which the ties between individuals are loose: everyone is expected to look
after himself or herself and his or her immediate family. Collectivism as its opposite
pertains to societies in which people from birth onwards are integrated into strong,
cohesive ingroups, which throughout people’s lifetime continue to protect them in
exchange for unquestioning loyalty. An important characteristic of individualist
society is that social conversations are important in that there is a constant need for
verbal communication and that silence is considered abnormal. However, for a
collectivist society, the act of being together in a social setting is considered
sufficient and often there is no compulsory communication unless there is a need to
convey information. Hofstede (2000) was also able to make the association that
countries which show medium to low individualism index (IDV) scores usually have
a form of state capitalism. This also corresponds with the high likelihood of the state
having a more dominating role in the economic system. Similar association can be
made with regards to freedom of press in that low IDV scores are usually correlated
with more controlled mass media. China which scored the lowest IDV, show all
these characteristics of this collectivists’ nature. It is the exact opposite with
Denmark. Despite Denmark sharing a similar agricultural background as China,
Denmark scored high IDV. This could be explained by national wealth relation, in
that the wealthier a country, the higher the individualism trait. Denmark also went
through modernization much earlier than China did, thus making this an important
factor for driving pursuits of self-interests to increase wealth.
(iii) Masculinity vs. Femininity
The third dimension, discusses about gender roles that are either masculine or
feminine. While masculinity is associated with assertiveness and competition,
femininity is related to nurturance and concern for relationships and for the living
environment. In societal terms, a masculine society has distinct social gender roles in
that men should be assertive, tough and focused on material success, while women