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Difference Between Individualism And Collectivism

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According to Hofstede (2001) dimensions can be verified empirically and are independent statistically. Therefore each country could be assessed individually and could be placed between the poles with various possible combinations. He has identified guideline scores for each dimension to help determine sensitivity of the dimension for different countries. These dimensions refer to every fundamental problem, which the society faces, but different societies may find different answers to these problems (Hofstede, 1983). Four cultural dimensions and their influence on e-commerce adoption and innovation diffusion are discussed below. Individualism vs. collectivism (IDV) According to Hofstede (1991) IDV dimension describes whether a person belongs to himself, weather s/he is free and independent in his own decisions, or s/he belongs to a group and seeks for harmony within this group. In relationship with e-commerce adoption, IDV level is important, as it plays decisive role in shaping trust (Jarvenpaa et al., 1999) therefore, it may affect people 's willingness to trust online vendors. Difference here lays in the way individuals are influenced by other people’s opinions. People from collectivist cultures value the opinion of their family members, relatives, colleagues etc. therefore they are more likely to rely on “word-of-mouth” communication and find these in-group opinions trustworthy (Clark, 1990). On the other hand, people from individualist cultures are more practical,

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