To be able to conduct business with a different culture, like that of the Chinese, it is important to know which
norms and values exist within that culture. The following chapter will give an overview of the basic differences
between the Dutch and Chinese cultures by means of the Five Cultural Dimensions model. The first paragraph
will introduce this model, the second paragraph will apply this model to Dutch and Chinese culture, indicating
the differences between the two.
Hofstede’s Five Cultural Dimensions
The Dutch professor Geert Hofstede gained worldwide recognition and respect through the formulation of his
‘Five Cultural Dimensions’‐model. By collecting and analyzing information from more than 100.000 individuals
differences influencing the functioning of organizations. (governments, families, companies) in different
cultures. The model provides an insight in cultural differences, making it easier to bridge the gap.
Power Distance Index (PDI): This dimension indicates how well less powerful members of organizations cope
with differences in power and inequality. The level of inequality in a society is influenced both by the leaders
and the followers.
Individualism (IDV): This dimension places individualism on one side, and collectivism on the other. It
illustrates the degree to which individuals are integrated into groups. On one side are societies in which people
look after themselves and their close relatives only. On the other extreme we find societies in which people are
integrated into close groups of direct as well as extended families, to which the individual is unquestionably
loyal.
Masculinity (MAS): This dimension refers to the degree in which cultures value the traditionally male or female
values. Feminine cultures place value on relationships and quality of life, whereas masculine cultures value
competitiveness, ambition, wealth and materials possession. In masculine cultures, the differences between
gender roles are more strict and less fluid than in feminine cultures.
Uncertainty Avoidance Index (UAI): This dimension illustrates how well people cope with uncertainty. Cultures
that have a high level of uncertainty avoidance try to minimize this by implementing many laws and
regulations. “These people are more emotional and motivated by an inner nervousness”. Cultures with a low
level of uncertainty avoidance, uncertainty accepting cultures, tolerate different opinions more and try to limit
the rules and regulations as much as possible.
Long‐Term Orientation (LTO): This dimension compares perseverance in the development and implementation
of innovations (long‐ term orientation) with the urge for truth and immediate result (short‐term orientation)
Chinese Culture VS. Dutch Culture
Power Distance Index (PDI): The power distance index shows that Dutch society is more equal than Chinese
society and that there is less emphasis on power and wealth. Chinese society values power and wealth much
more and has a much stronger hierarchy.
While doing business, this hierarchy is an important factor to pay attention to.
Individuality (IDV): On individuality, China and the Netherlands are each other’s opposites. China scores very
low, as the Communist government emphasises a collective society and ties between groups are very strong.
Loyalty is of the utmost importance. The Dutch on the other hand, are very individualistic and maintain
relatively loose bonds with only closest relatives.
Chinese businesses are influenced by this, as companies will not change their partners easily, fearing the effect
this may have on relationships. Immediate loyalty is given to new partners.
Masculinity (MAS): The Netherlands hardly distinguish between men and women, and both sexes are treated
equally. The Chinese score much higher on masculinity, meaning that there is a bigger difference between the
two.
Uncertainty Avoidance (UAI): Both China and the Netherlands score averagely on uncertainty avoidance. Both
have a tenancy to reduce uncertainty by implementing laws and regulations. It should be noted that in Chinese
society, social control is very strong. Reputation and respect within the community are valuable, and ‘loosing
face’ can be much more detrimental than breaking a law.
0 10 20 30 40 50 60 70 80 90 100
PDI IDV MAS UAI LTO
Figure 9.1 China’s cultural dimensions
0 10 20 30 40 50 60 70 80 90 100
PDI IDV MAS UAI LTO
Long‐Term Orientation (LTO): As all Asian countries, China scores high on long‐term orientation. Society
believes that with perseverance, will and strength, all obstacles can eventually be overcome. The Dutch score
average on long‐term orientation. This indicates that the Chinese valua long‐term commitments and traditions
much more than the Dutch.
Appendix VIII: Question List Potential Suppliers
Corporate Social Responsibility and sustainability are becoming more and more important in industries and
countries across the globe. Kuyichi was one of the first to combine this with fashion. Established in 2001,
Kuyichi made it its mission to combine fashion with fair labour and organic production.
To reach these goals, Kuyichi is continuously working on improving labour conditions and increasing the use
of sustainable materials throughout the supply chain.
To this extent, we would like to ask you to fill out the following form. The questions are divided over two
parts: labour and sustainable materials.
General Information
Supplier name:
Location:
Specialized in:
Currently producing for (other brands:
Part 1: Labour
Employment
1.1 Number of employees:
1.2 Average age of employees:
1.3 Age of oldest employee:
1.4 Age of youngest employee:
1.5 What measures are taken to ensure that young workers get a proper education?
1.6 How many days a week does the factory operate?
1.7 How many hours is the average working week?
1.8 How many free days do the employees have per 7‐day period?
1.9 How often do employees work overtime?
Wages