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.