Introduced by the speaker in 1991 as a fifth dimension of difference between national societies.
Originated from a research project by Professor Michael Bond from Hong Kong using a questionnaire by Chinese scholars.
Initially had data for 23 countries. Expanded to 93 countries in 2010 through Dr. Michael Minkov's work using the World Value Survey.
Definitions
Long-term Orientation (LTO)
Fostering pragmatic virtues oriented to future rewards.
Key traits: perseverance, thrift, saving, adapting to changing circumstances.
Short-term Orientation (STO)
Fostering virtues related to the past and present.
Key traits: national pride, respect for tradition, preservation of faith, fulfilling social obligations.
Key Characteristics
Long-term Orientation
Good and evil seen as relative and changeable.
Norms depend on the situation.
Superior person adapts to circumstances.
Humility in self-perception.
Willingness to learn from other countries.
Traditions can change.
Integration of opposing truths.
Common sense and middle way are crucial.
Short-term Orientation
Good and evil seen as absolute and unchanging.
Fixed norms regardless of circumstances.
Superior person is consistent.
Seeks positive self-information.
Pride in one's own country.
Traditions are sacred.
Opposing truths seen as contradictions.
Fundamentalism and extreme views are more common.
Measurement
Measured using the Long-Term Orientation Index (LTO) on a scale from 0 (short-term) to 100 (long-term).
Example countries: East Asia (Japan, China), Germany, Russia, Netherlands, France, Italy, Sweden (high LTO); Britain, India, Israel, USA, Mexico, Australia, Nigeria, Egypt (low LTO).
Correlations and Societal Factors
Education
Long-term: Higher performance in math, lower self-assessment.
Short-term: Lower performance in math, higher self-assessment.
Economic Behavior
Long-term: Larger savings, funds for investment, focus on market share and long-term profits.
Short-term: Smaller savings, focus on quarterly results and bottom line, preference for shares and mutual funds.
Poor countries: Faster economic growth with long-term orientation, slower with short-term orientation.
Wealthy countries: No significant difference in growth.
Cultural Stability
Values are transferred from parents to children and change rarely over time.
Consistent country differences across generations.
Technological changes affect habits and practices differently based on pre-established values.
Conclusion
Long-term orientation is crucial for the economic development of poor countries.
Despite technological advances, fundamental cultural values remain stable and influence how technology is utilized.