Societal Culture in Iceland and Lithuania: Managerial Implications

Abstract

This article contributes to cross-cultural management literature, by providing empirical data from two underresearched countries, to serve in the future as benchmark cultural shift research. Furthermore, it illustrates not only the insufficiency of mare statement of cultural dimension difference/similarities but also a need to contextualize them. Results indicate that Icelandic and Lithuanian societal cultures are different on three out of seven of Hofstede's dimensions; however, these differences have considerable effect on management practices. Results also present how a similar score of the same dimension fails to explain big differences within societies regarding a particular aspect (e.g. gender gap) and suggest that societal cultural differences have implications on management practices regarding work-life balance, motivational system, organizational structure, and level of formalization. Icelanders will put more importance on leisure and will feel happier in general, whereas Lithuanians will have higher work ethics. Lithuanians will be inclined to higher need for achievement (particularly for expatriate management). More structure, formalization, hierarchy, and direct following of the regulations can be expected in Lithuania. This contribution fills the gap in the literature by comparing societal cultures of two countries that have been neglected in cross-cultural research. Both countries are undergoing societal changes and the results of this research can serve in the future as a benchmark for indication of cultural swift. Furthermore, this article outlines the practical implications of societal cultural differences for management.

Deficit in Propriety? Cooperative Learning and Group Self-evaluation in Higher Education

“…As already mentioned in the theoretical part of the article, the literature suggests that Iceland is a highly individualistic society (Aðalsteinsson et al, 2011;Mixa & Vaiman, 2015). The study by Snaebjornsson et al (2017) concurred regarding the individualistic orientation of Icelandic national culture and extended this individualistic orientation, suggesting the Icelandic business sector is in general inherently individualistic too (priority is given to "I" instead of "we"). The authors note that 'with regard to management, this dimension is particularly important when it comes to motivating people' (p. 9).…”

“…Firstly, based on Hofstede's societal cultural dimensions model, Iceland is a highly individualistic society (Aðalsteinsson et al, 2011;Mixa & Vaiman, 2015). Entrepreneurship and innovation are strongly embedded in the culture and there are many shared characteristics in American and Icelandic cultural values (Snaebjornsson et al, 2017). There is materialistic pressure in Iceland, which promotes the social compulsion to compete with others on material things.…”

Societal cultural dimensions and GDP as predictors of educational leadership and school autonomy indicators’ in PISA

“…Power Distance has a significant positive relationship with educational leadership, the index representing inclusive decision-making. This finding is somewhat surprising, as Power Distance in management settings, as outlined by Snaebjornsson et al (2017), describes more hierarchical societies and is associated with more positive views on autocratic leader behaviour and attitudes (Den Hartog et al, 1997;Suutari, 1996), as well as formal relationships between superiors and subordinates (Hofstede, 1984). A possible explanation for such a finding is the leader-centric origin of the index, as it collects answers from the principals of the schools; while the data might represent accurately the views and attitudes of the principals, other views of 'followers', in this case teachers, are missing.…”

“…Restraint stands for a society that suppresses gratification of needs and regulates it by means of strict social norms (Minkov, 2009;Chinese Culture Connection, 1987). These dimensions represent differences among countries in various fields of life: work or school, home and family life, based on differences in attitudes (Snaebjornsson et al, 2017). However, these differences are not static and might change over time and as a result of changing economic conditions.…”

Meanings of management in the post-socialist higher education: the case of Lithuania

“…In a similar vein, existing observations of management practices in Lithuania are contradicting, too. Authors point to the relevance of standardisation and formalisation (Minelgaite Snaebjornsson et al. , 2017), with the result that protocols and rules frame the everyday work in Lithuanian organisations.…”