EURAM 2013 26 -29 June 2013 Annual Conference

EURAM 2013 26 -29 June 2013 Annual Conference of the European Academy of Management Why are People in Luxembourg Happy? Language as an Identifier of Culture in the Grand Duchy by Dr Ursula Schinzel 00352. 621. 322. 543 ursula_schinzel@yahoo. com EURAM Istanbul - Dr Ursula Schinzel 26 -29 June 2013 1

Research Question: The purposes of this study are: 1. to explain where Luxembourg fits in on Hofstede’s 7 dimensions of culture 2. to explain Luxembourg people’s high scores on the measure of happiness EURAM Istanbul - Dr Ursula Schinzel 26 -29 June 2013 2

Methods Review of the Literature n Participant Observation (Primary Data) n Interviews (Primary Data) n Questionnaires (Primary Data) n EURAM Istanbul - Dr Ursula Schinzel 26 -29 June 2013 3

Literature Review n n n n The era before Hofstede: n n n Maslow, Abraham n Mc. Clelland, David n Herzberg, Frederick n Rockeach, Milton n Hall, Edward n Kluckhohn, Florence and Strodtbeck, Fred n n n The era besides Hofstede: n n The era after Hofstede: Triandis, Harry Smith, Peter, B. Schwartz, Shalom Trompenaars, Fons & Hamden-Turner, Charles De Mooij, Marieke Inglehart, Ronald The GLOBE, House, Robert; Hanges, Paul… Schein, Edgar Bond, Michael, Harris Mintzberg, Henry Minkov, Michael Hofstede, Gert Jan Mc. Sweeney Scholz, Christian; Böhm, Hans n Lewis, Richard D. n Aaker, Jennifer Spizzo, Daniel n Briley, Donnel n Nakata, Cheryl n Kirkman, Hong, Benet-Martínez, Leung, Hermans, Kempen…. The era beyond Hofstede: EURAM Istanbul - Dr Ursula Schinzel 26 -29 June 2013 4

Geert Hofstede (1928 - ) What did he do? Born in the Netherlands in 1928 n IBM HRM research in the 1960 s n 116, 000 questionnaires n Identified 4 cultural dimensions, later added more: n IDV/COLL, UAI, PDI, MAS/FEM, n LTO, IVR, MON. n Dared to contradict Maslow, Herzberg, Mc. Clelland n Brought cultural research from the US to Europe n Emeritus Professor at Maastricht University n http: //www. geerthofstede. nl/ Start at 2: 36 n EURAM Istanbul - Dr Ursula Schinzel 26 -29 June 2013 5

Hofstede’s Dimensions of Culture Hofstede's Dimensions of Culture - Explained Easily : http: //www. youtube. com/watch? v=6 g. Jz. RS 0 I 7 t. A&feature=related http: //www. youtube. com/watch? v=i 2 YG 6 Wb 3 j 0 s&feature=youtu be_gdata_player Individualism versus Collectivism (IDV) Power Distance Index (PDI) Uncertainty Avoidance (UAI) Masculinity versus Femininity (MAS) Long-Term versus Short. Term Orientation(LTO) Indulgence versus Restraint (IVR) EURAM Istanbul - Dr Ursula Schinzel Monumentalism (MON) 26 -29 June 2013 6

Luxembourg n n n n n Unitary parliamentary democracy and constitutional monarchy Grand Duke: Henri Prime Minister: Jean-Claude Juncker Official languages: Luxembourgish, French, German Capital Luxembourg (90, 000 inhabitants) Size: 2, 586 km 2 Population total: 511, 000 Motto: “Mir wëlle bleiwe wat mir sinn” “We want to remain what we are” Anthem: “Ons Heemecht” – “Our Homeland” EURAM Istanbul - Dr Ursula Schinzel 26 -29 June 2013 Queen Mary II and Marie-Astrid 7

Hypothesis 1: Native Luxembourgers scores on PDI, UAI, IDV, MAS, LTO, IVR, MON cultural dimensions are significantly different from the scores of non-Luxembourgers in Luxembourg Hypothesis 2: There are significant differences between Hofstede et al. ’s PDI, UAI, IDV, MAS, LTO, IVR, MON cultural dimensions estimates for Luxembourg and the empirical values found in this study for Luxembourgers with Luxembourgish Nationality Hypothesis 3: Luxembourgers are happy because they Use their language as identifier, are highly uncertainty avoidant, are long-term oriented, have low power distance, are highly collectivist EURAM Istanbul - Dr Ursula Schinzel 26 -29 June 2013 8

Femmes Leaders Luxembourg HRone Fairs ‘Foires’ University Luxbg American Chamber of Commerce POG – Personnel Officer’s Group Data Analysis: Participant Observation Paper. Jam Business Club BEE SECURE Libreria Italiana European Commission Brasseries, Restaurants, Hotels, Bars. Luxembourg prefers: Meeting in person; in a Hotel or Bank; over Cocktail with Champagne/ Lunch or Dinner Chamber of Commerce and Sacred Heart University Luxembourg EURAM Istanbul - Dr Ursula Schinzel LPRA – Luxembourg Professionals Recruiters Association 26 -29 June 2013 9

Culture Calculation Formulas n n n n PDI = 35(m. QVAL 7 – m. QVAL 2) + 25(m. QVAL 23 – m. QVAL 26) + C (pd) UAI = 40(m QVAL 20 – m. QVAL 16) + 25(m. QVAL 24 – m. QVAL 27) + C (ua) IDV = 35(m. QVAL 4 – m. QVAL 1) + 35(m. QVAL 9 – m. QVAL 6) + C (ic) MAS = 35(m. QVAL 5 – m. QVAL 3) + 35(m. QVAL 08 – m. QVAL 10) + C (mf) LTO = 40(m. QVAL 18 – m. QVAL 15) + 25(m. QVAL 28 – m. QVAL 25) + C (ls) IVR = 35(m. QVAL 12 – m. QVAL 11) + 40(m. QVAL 19 – m. QVAL 17) + C (ir) MON = 35(m. QVAL 14 – m. QVAL 13) + 25 (m. QVAL 22 – m. QVAL 21) + C (mo) EURAM Istanbul - Dr Ursula Schinzel 26 -29 June 2013 10

Hofstede’s Cultural Dimension: Interviews’ and Questionnaires’ Results in Collaboration with Lindab Buildings Diekirch Table 1 Comparison Luxembourg – Luxembourg with Luxembourgish nationality (Lux. Nat. ) – Hofstede’s estimates on Luxembourg (On a scale from 1 -100, 1 being the lowest and 100 the highest score) Luxembourg PDI UAI IDV MAS LTO IVR MON Lux. Nat. Hofstede’s estimates on Luxembourg 36 97 51. 5 47 69 53. 5 10 29 95 34 54 65 55 24 40 70 60 50 64 56 - EURAM Istanbul - Dr Ursula Schinzel 26 -29 June 2013 11

Cultural dimensions in Luxembourg Lux. Nat. – France – Germany – UK – Belgium FR – Belgium NL – Italy – the Netherlands NL – China – USA – Japan (on a scale from 0 -100) (0=lowest, 100=highest) Luxbg PDI 36 UAI 97 IDV 51. 5 MAS 47 LTO 69 IVR 53. 5 MON 10 Lux. Nat. France Germany UK Belgium FR Belgium Italy NL NL China USA Japan 29 95 34 54 65 55 68 86 71 43 63 48 16 68 93 71 60 82 57 - 61 97 78 43 82 57 - 38 53 80 14 67 68 11 80 30 20 66 87 24 0 54 92 46 95 88 42 4. 0 24 EURAM Istanbul - Dr Ursula Schinzel 35 65 67 66 83 40 10 35 35 89 66 51 69 35 26 -29 June 2013 50 75 76 70 61 30 35 40 46 91 62 26 68 57 12

What is Logistic Regression? http: //video. mynet. com/1982 yucel/Arabic-Super-hits-Belly. Dance/1447061/ start at 1: 02 Logistic regression allows prediction of group membership, for example, prediction of whether someone is a belly dancer based on gender, occupational category, preferred type of reading material and age. Logistic regression allows to evaluate the odds (the probability) of membership in the group of belly dancers based on the combination of values of the predictor variables, 25 year old female sports professor, teaching hip-hop and reading dance books EURAM Istanbul - Dr Ursula Schinzel 26 -29 June 2013 13

Logistic Regression Definition: Logistic Regression is a statistical method used to model the relationship between a qualitative dependent variable – like for example ‘happiness’ – and a combination of independent variables – like for example ‘taking risk’, ‘free time for life’, ‘level of education’ ‘job level manager or nonmanager’, ‘state of health’, ‘religion’ Logistic Regression is calculated in SPSS is a computer program from IBM. SPSS means ‘Statistical Package for the Social Sciences’. Between 2009 and 2010 it was called PASW – ‘Predictive Analytics Soft. Ware’ EURAM Istanbul - Dr Ursula Schinzel 26 -29 June 2013 14

Logistic Regression Dependent Variable: Being happy Taking Risk Free Time for Life Level of Education Contradict boss State of health Importance of Religion Constant EURAM Istanbul - Dr Ursula Schinzel Regression Coefficients 0. 931 0. 974 -0. 930 1. 096 1. 485 0. 677 Odds Ratios -0. 628 0. 534 26 -29 June 2013 2. 538 2. 647 0. 394 2. 993 4. 416 1. 969 15

Correlation Matrix * Significant at. 05 Taking Risk Free Time Level of for Life Education Contradict boss State of health Taking Risk 1. 000 Free Time for Life Level of Education Contradict boss State of health 0. 214 1. 000 0. 054 -0. 213 1. 000 -0. 149 0. 126 0. 182 1. 000 0. 105 0. 006 -0. 279 -0. 233 1. 000 Importance of Religion 0. 195 -0. 101 -0. 122 -0. 065 0. 086 Importance of Religion EURAM Istanbul - Dr Ursula Schinzel - 26 -29 June 2013 1. 000 16

Constant -0. 628 For a person who takes risks +(0. 931)x 1 And who takes free time for himself/herself +(0. 974)x 1 Who has a high level of education +(-0. 930)x 1 Who dares to contradict the boss +(1. 096)x 1 Whose state of health is good +(1. 485)x 1 For whom religion is important +(0. 677)x 1 e = 3. 605 z = 3. 605 = 36. 7817 + 1 = 37. 7817 logit = p with z = with the constant p= p= p = 0. 97 The probability for this person to be happy is 0. 97. This is a very high probability, near 1 EURAM Istanbul - Dr Ursula Schinzel 26 -29 June 2013 17

Logistic Regression: The probability of Luxembourgers of Who takes risk being happy Who takes free time for life for him/herself Person 1 Probability of being happy = 0. 97 Who has a high level of education Who dares to contradict the boss Whose state of health is good For whom religion is important Who does Not take risk Person 2 Probability of being happy = 0. 94 EURAM Istanbul - Dr Ursula Schinzel Who takes free time for life for him/herself Who has a high level of education Who dares to contradict the boss Whose state of health is good For whom religion is important 26 -29 June 2013 18

Correlation among all variables in SPSS PDI UAI IDV MAS LTO IVR HAPP Y MON N=134; * p<. 05; ** p<. 001 GENDER EDUCATION AGE PDI - UAI -. 021 - IDV . 135 -. 011 MAS . 206* LTO . 138 . 059 . 000 - IVR . 031 . 043. 318**. 272** . 042 MON . 068 . 023. 245** . 129 -. 089. 244** - HAPPY . 038 . 160 . 045 . 014. 268**. 293** . 001 - GENDER -. 030 . 073 -. 041 -. 012 . 004 -. 029 -. 105 . 029 - AGE -. 117 . 031 -. 059 . 022 -. 076 . 108 -. 312** . 040 -. 128 - . 037 -. 155 . 106 . 094 . 119 . 112 . 060 . 082 . 120 -. 025 - . 210* -. 001 . 016 . 080 -. 043 . 090 . 006 . 162 -. 490** -. 084 EDUCATION RANK - -. 060. 517**. 030 - - . . 230** EURAM Istanbul - Dr Ursula Schinzel 26 -29 June 2013 19

Conclusion LONG-TERM ORIENTATION LOW TY POW Hypothesis 1, 2, 3 are confirmed LA ER DIS IN TAN RTA CE CE UN E H C HIG IDAN Luxembourgers O AV n use their language as identifier N are highly uncertainty avoidant AG n are long-term oriented / M E S AS VI SM n have low power distance ID TI LI EN EC UA TI n are highly collectivist LL ID FI CO DIV ER n and are happy GH IN GU n I H OW L HAPPY EURAM Istanbul - Dr Ursula Schinzel 26 -29 June 2013 20

EXPLANATIONS PDI POWER DISTANCE INDICATOR PDI Luxembourg is low with 36/100 PDI Lux. Nat. : 29/100 China: 80 USA: 40 PDI (Power Distance Indicator) Luxembourg is small, hierarchy is not felt that much, boss and employees meet in the same sport clubs, supermarkets, bars, evening events EURAM Istanbul - Dr Ursula Schinzel 26 -29 June 2013 21

EXPLANATIONS UAI UNCERTAINTY AVOIDANCE INDICATOR UAI Luxembourg is high 97/100 UAI Lux. Nat. 97/100 UK: 35 USA: 46 UAI Uncertain and unknown situations are avoided Secure, regulated, clear life without surprises, is preferred EURAM Istanbul - Dr Ursula Schinzel 26 -29 June 2013 22

EXPLANATIONS IDV INDIVIDUALISM VERSUS COLLECTIVISM IDV Luxembourg is medium 51. 5/100 IDV Lux. Nat. low IDV 34/100 USA: 91 Italy: 76 IDV Lux. Nat. are highly collective people preferring the well-being of the group and country EURAM Istanbul - Dr Ursula Schinzel 26 -29 June 2013 23

EXPLANATIONS MASCULINITY VERSUS FEMININITY MAS Luxembourg is medium 47/100 MAS Lux. Nat. is medium 54/100 Japan: 95 NL: 14 MAS the characteristics of a masculine dominant country = competition and success, and those of a feminine dominant country = caring for others, quality of life, are equally distributed EURAM Istanbul - Dr Ursula Schinzel 26 -29 June 2013 24

EXPLANATIONS LTO LONG-TERM ORIENTATION VERSUS SHORT-TERM ORIENTATION LTO Luxembourg is high 69/100 LTO Lux. Nat. is high 65/100 USA: 26 Germany: 83 LTO • LTO is characterized by foreseen, and planned events and by perseverance and thrift EURAM Istanbul - Dr Ursula Schinzel 26 -29 June 2013 25

EXPLANATIONS IVR INDULGENCE VERSUS RESTRAINT IVR Lux. Nat. is medium 55/100 China: 24 Italy: 30 USA: 68 IVR Luxembourg is medium 53. 5/100 IVR In general: indulge in life, love profiting from the benefits of life, enjoy life EURAM Istanbul - Dr Ursula Schinzel 26 -29 June 2013 26

EXPLANATIONS MONUMENTALISM MON Luxembourg is low 10/100 MON Lux. Nat. is low 24/100 USA: 54. 2 Japan: 4 MON Lux. Nat. love their national traditions and nationality, the Grand Ducal family, National Day, National Hymn and are living their national identity EURAM Istanbul - Dr Ursula Schinzel 26 -29 June 2013 27

Language as Identifier Assure national identity World War 1 and 2 Discriminating factor for identification Importance Access to advantages Nationality EURAM Istanbul - Dr Ursula Schinzel 26 -29 June 2013 28

Hofstede’s Dimensions of Culture in Luxembourg: Why are people in Luxembourg happy? Luxembourgers are happy because they: Use their language as identifier are highly uncertainty avoidant are long-term oriented have low power distance are highly collectivist Hypothesis 1, 2, 3 are confirmed EURAM Istanbul - Dr Ursula Schinzel 26 -29 June 2013 29

Thank you for your attention EURAM Istanbul - Dr Ursula Schinzel 26 -29 June 2013 30