38 Summary To summarise this chapter details the differences in the cultural

38 summary to summarise this chapter details the

This preview shows page 55 - 59 out of 241 pages.

3.8 Summary To summarise, this chapter details the differences in the cultural characteristics of the four largest ethnic groups in New Zealand, and the potential effects of cultural values on tax compliance. Collectivistic Pacific, Maori and Asians have access to group resources but they are also obliged to fulfil group needs. Unlike the Asians, who emphasise wealth accumulation, the Maori and Pacific groups emphasise sharing and giving
Image of page 55
42 towards their groups. Individualistic Europeans are more self reliant and manage their business and financial affairs using their own efforts. Given the cultural differences between the ethnic groups, an intra-cultural study may reveal the impact of ethnicity on tax compliance. In order to study cultural differences, a cultural framework has been adopted for this study as discussed in the next chapter.
Image of page 56
43 CHAPTER 4: Hofstede’s Theoretical Framework and Cultural Dimensions 4.1 Introduction Chapters 2 and 3 discussed the prior literature on ethnicity and tax compliance, and the cultural values of New Zealand ethnic groups respectively. Given that cultural values may affect tax decisions and practices, it is important for one to adopt a cultural theoretical framework to provide explanations for the tax compliance behaviours of the different ethnic groups. The two main cultural frameworks used in business and social studies on national and ethnic groups are Hofstede’s (2001) and GLOBE (House et al., 2004). After considering the arguments for and against the two cultural frameworks, this study has decided to adopt Hofstede’s framework, which is elaborated in sections 4.3.1 and 4.3.2. This chapter provides an overview of culture and the cultural dimensions of Hofstede’s framework. It begins with the definition of culture and how it affects human behaviour in section 4.2. Section 4.3 compares the cultural frameworks of Hofstede and GLOBE with justifications for choosing Hofstede. Section 4.4 discusses the five cultural dimensions of Hofstede’s framework, followed by the comparative positions of the ethnic groups for the cultural dimensions in section 4.5. Section 4.6 summarises the overall positions of the cultural dimensions for the four ethnic groups, followed by section 4.7 which details intra-cultural study using Hofstede’s framework. The chapter concludes with a summary in section 4.8. 4.2 Culture and human behaviours Culture has been defined as the “collective programming of the mind that distinguishes the members of one group or category of people from others” (Hofstede & Hofstede, 2005, p. 4). Broadly speaking, culture is a set of shared values, beliefs, and norms of a group of people with which they understand and interpret the world (Basu & Altinay, 2002; Geertz, 1973; Trompenaars et al., 1994). Associated with culture are the norms or “standards of behaviour that exist within a group or category of people” (Hofstede &
Image of page 57
44 Hofstede, 2005, p. 21). The core of culture, according to most authors, is rooted in values (Erez, 1993; Hofstede, 1980; Schein, 1985) where values are the “broad tendencies to prefer certain states of affairs over others” (Hofstede, 1991, p. 263).
Image of page 58
Image of page 59

You've reached the end of your free preview.

Want to read all 241 pages?

  • Fall '16
  • tax compliance, SME Operators

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes
A+ icon
Ask Expert Tutors