Understanding the social dynamics of the region that you decide to enter will enable you to more efficiently communicate with the natives, access target markets, build a labor force and successfully manage teams.
Your knowledge of the social aspects and cross-cultural communications is important in face to face situations as well as virtual interactions.
Geert Hofstede developed a cultural analysis tool that segments it into multiple dimensions: Power Distance, Uncertainty Avoidance, individualism vs. collectivism, masculinity vs. femininity, and long term orientation vs. short term orientation.
A high measure of power distance indicated that they are hierarchical, most likely having strict delineations between professional positions and responsibilities within a company. A low power distance score indicates that they are egalitarian. An uncertainty avoidance score measures the comfort level than individuals have with ambiguity. The higher the score, the less comfortable they are in ambiguous situations.Individualism signifies a culture that is more likely to have their members make decisions independently, valuing their independence. Members of collectivist cultures may rely on a consensus based approach to making decisions. Masculinity and femininity compare the culture’s emphasis on the quantity versus the quality of life. Masculine cultures are more materialistic. Long term orientation reveals the culture’s focus on the distant future rather than the short term orientation view of stressing the importance of the immediate present and past.