Lecture Notes: Uncertainty Avoidance in National Societies

Definition and Origin

• Term Uncertainty Avoidance: Originated in the 1960s in the theory of the firm.
• Applied to organizations by Sad and March; adopted in the 1970s to describe differences between national societies.
• Meaning: Extent to which members of a national culture feel threatened by ambiguous or unknown situations.
• Misconception: Not to be confused with risk avoidance.

Characteristics of Uncertainty Avoidance

Uncertainty Avoiding Societies

• View inherent uncertainty as a threat to be countered.
• Exhibit higher levels of stress and anxiety.
• Aggression and emotions are often expressed.
• Perceive differences as dangerous.
• Require strict rules and formalization, even if impractical.
• Slow adoption of innovations, including technological.
• Preference for job stability.
• Exhibit xenophobia (fear of different people).

Uncertainty Accepting Societies

• Accept uncertainty as a normal part of life.
• Exhibit lower levels of stress and anxiety.
• Control aggression and emotions.
• Perceive differences as curious.
• Prefer fewer rules and deregulation.
• Faster adoption of innovations.
• More open to changing jobs.
• More tolerance towards different people.

Measurement

• Uncertainty Avoidance Index (UAI): Compares countries on a scale from 0 (weak) to 100 (strong) uncertainty avoidance.
• Examples:
  • High UAI: Russia, Japan, France, Mexico, Italy, Arab countries.
  • Low UAI: Netherlands, Australia, USA, India, UK, China, Nordic countries.

Implications and Applications

• Traffic Behavior: Higher speed limits and faster driving in uncertainty avoiding societies.
• Health Care: More doctors, fewer nurses in uncertainty avoiding societies versus more nurses in uncertainty accepting societies.
• Perceived Corruption: Wealthy uncertainty avoiding societies perceived as more corrupt.
• Marketing Strategies:
  • Uncertainty Avoiding: Emphasis on purity and cleanliness.
  • Uncertainty Accepting: Focus on convenience and humor in advertisements.

Relationship with Power Distance

• Two-Dimensional Analysis: Countries categorized by levels of uncertainty avoidance and power distance.
• Examples:
  • Small Power Distance & Weak Uncertainty Avoidance: USA, UK, Nordic countries.
  • Small Power Distance & Strong Uncertainty Avoidance: Germany, Austria, Switzerland.
  • Large Power Distance & Strong Uncertainty Avoidance: France, Russia, Japan, Korea.
  • Large Power Distance & Weak Uncertainty Avoidance: China, India.

Changes Over Time

• Stability of UAI Scores: Reflects values from parents to children; rarely change post-adulthood.
• Oscillation Patterns: Global fluctuations in UAI during times of war and economic crisis.
  • Higher UAI in crises, lower in stability.
  • Relative positions of countries remain stable despite fluctuations.