Hofstede Analysis Comparison between the USA and El Salvador 1
Hofstede Analysis Comparison between the USA and El Salvador
School of Business, Liberty University
BMAL 604: Managing and Leading Across Cultures
Table of Contents
AUTHOR NOTE.................................................................................................................................1
TABLE OF CONTENTS.......................................................................................................................2
ABSTRACT........................................................................................................................................2
DIFFERENCES AND SIMILARITIES BETWEEN EL SALVADOR AND THE USA?................................................................4
Power Distance Index..............................................................................................................4
Individualism vs. Collectivism..................................................................................................5
Masculinity vs. Femininity.......................................................................................................6
Uncertainty Avoidance Index...................................................................................................6
Long-Term Orientation vs. Short-Term Normative Orientation...............................................7
Indulgence vs. Restraint..........................................................................................................8
IMPLICATIONS FOR USA BUSINESSES WHO CONDUCT BUSINESS IN EL SALVADOR?................................................9
Power Distance Index..............................................................................................................9
Hofstede Analysis Comparison between the USA and El Salvador 2
Individualism vs. Collectivism..................................................................................................9
Masculinity vs. Femininity.....................................................................................................10
Uncertainty Avoidance Index.................................................................................................10
Long-term vs. Short-term Normative Orientation.................................................................11
Indulgence vs. Restraint........................................................................................................11
REFERENCES..................................................................................................................................13
Abstract
This is a comprehensive analysis of El Salvador and the United States culture utilizing the Geert
Hofstede analysis. The Hofstede analysis assesses six different characteristic dimensions, which
are power distance index, individualism vs. collectivism, masculinity vs. femininity, uncertainty
avoidance index, long-term orientation vs. short-term normative orientation, and indulgence vs.
restraint. (Satterlee, 2023) These dimensions are analyzed to understand not only the
similarities and differences of the nations but also the implications of conducting business in El
Salvador. Notably, El Salvador has a higher power distance index, collective culture, feminine
societal structure, and higher uncertainty avoidance compared to the United States. (Country
comparison tool, 2023) Additionally, El Salvador had a short-term orientation and a greater
rating of indulgence. While the implications to business are varied, provided are clear examples
of cultural norms that must be considered when conducting business. Conclusively, there is
consistency in what is known about the correlations in Hofstede’s analysis when compared to
past analyses. (Sridharan, 2022)
Keywords: Hofstede, El Salvador, Central America, Latin America
Hofstede Analysis Comparison between the USA and El Salvador
Hofstede Analysis Comparison between the USA and El Salvador 3
There are clear differences in the systems and structures that are in place for both the
United States of America (USA) and El Salvador. Not only are there differences, but these
differences impact the way we conduct international business. While some similarities may
facilitate business, this paper will also highlight the challenges that are faced due to the
differences. This paper will break down all six components of the Hofstede analysis, which are
power distance index, individualism vs. collectivism, masculinity vs. femininity, uncertainty
avoidance index, long-term orientation vs. short-term normative orientation, and indulgence vs.
restraint. All these components have specific attributes and characteristics that impact the way
that international business is carried out within the United States. To begin, we will discuss the
differences between our countries so that we will be able to analyze their impacts more
effectively in the second section of this paper.
Differences and Similarities Between El Salvador and the USA?
As mentioned previously, there are both similarities and differences between the
USA and El Salvador. These have been analyzed utilizing the Country comparison tool that
utilizes resources back to the original 1984 Geert Hofstede publication. (2023) This resource
provides a score for all of the attributes to determine the Hofstede score of each dimension.
These scores are calculated as if 100 points is the highest score achievable. This paper intends
not to be biased in choosing a viewpoint but to present the information in a non-biased fashion.
Additionally, this information will be used to inform the proposed impacts that are seen through
conducting international business with this country.
Power Distance Index
Within El Salvador, there is a higher power distance index than in the United States.
Hofstede Analysis Comparison between the USA and El Salvador 4
When utilizing the country comparison tool, El Salvador had a score of 66 compared to the
United States, which has a score of 40. (2023) While the governmental structures in El Salvador
are similar to those used in the United States, the outcomes are very different. (Encyclopedia
Britannica, 2025) The difference in the hierarchical view and structure within El Salvador may be
due to its past. Historically, El Salvador's indigenous people have been suppressed by the
government, and only up until the 1930s did they have more freedom to practice their
traditions. However, this is not the only influencing factor. Additionally, the Roman Catholic
Church, which has a very hierarchical view and system, influences the country. So, the combined
influence of the indigenous people being impacted throughout the years and the heavy
influence of the roman catholic church, the differences in the Power Distance Index are not
surprising for most.
Individualism vs. Collectivism
As described by Krys et al., Latin America and El Salvador, in particular, do not have a
high level of individualism but are more collective societies. (2022) This is consistent with the
results of the country comparison tool. (2023) These results are consistent with “the West”
compared to more eastern countries. Some research would suggest that there may be strong
benefits to the view of collectivism within society. However, most of the research is conducted
in more individualistic countries. Additionally, the priority of this paper is not to delineate the
benefits or the detriments of individualism and collectivism but rather to describe the current
status within each country.
This stark difference in collectivist vs. individualist mindset can be further explained in a
recent paper by Senft et al., when comparing people of Latin, Asian, and European heritage.
(2021) This study was conducted on college students who had come to America to study at a
Hofstede Analysis Comparison between the USA and El Salvador 5
university. However, their experiences from their predominant heritage provided great insight
into the differences that would contribute to someone’s perception of you. For example, in the
Latin culture, it was beneficial to express positive emotions, whereas in Asian and European
culture, this was less desirable. This is reflective of the collectivist Simpatia cultural model,
which emphasizes positivity and rejects negativity.
Masculinity vs. Femininity
As we begin to analyze the differences in the USA and El Salvador’s masculine and
feminine cultural characteristics, we must understand the descriptions of the two. Masculine
nations tend to hold more traditional gender roles and traditions, as well as value highly
achievement, power, and control. However, feminine nations tend to have a more balanced
approach to traditional gender roles and value highly caring for others, quality of life, modesty,
and cooperation. With that general breakdown from the Satterlee text, we can more clearly
understand the attributes that lead to El Salvador being a more feminine nation and the United
States being a more masculine nation. (2023)
In the majority of the El Salvadorian households, the man is the main contributor to
household income. (Commisceo Global Consulting Ltd., 2020) However, within middle- and
upper-class households, this is beginning to change. There is an increase of females obtaining
higher professional degrees and becoming medical doctors, dentists, and teachers. This is
different from the United States, where females have been able to pursue roles such as this for
longer periods due to our school systems encouraging them to “strive to be the best they can
be” and having a “the winner takes all” (Country comparison tool, 2023)
Hofstede Analysis Comparison between the USA and El Salvador 6
Uncertainty Avoidance Index
El Salvador has historically been a country that values hierarchy within its systems. It also
has a high uncertainty avoidance index of 94. (Country comparison tool, 2023) This is not
uncommon for the countries that historically belonged to the Spanish kingdom. However, great
strides have been made. Usually, countries that score highly on the uncertainty avoidance index
have a high resistance to change or innovation, but there may be hope for some companies and
industries within Latin America from a recent study. (Lim & Morris, 2023) This study indicated
that companies were more likely to innovate during times of recession. While culturally they are
hesitant to innovate, under societal pressure, there is a willingness to change.
This is the exact opposite of the United States. Within the United States, there is a very
low uncertainty avoidance index. The total score is 46, which is more than half of El Salvador’s.
(Country comparison tool, 2023) This is indicative of the willingness for change and the
tolerance for risk within the United States. There is a multitude of factors that may contribute to
this, but the “American Dream” may be a primary driver. While still an American territory, this
“American Dream” drives migration from Puerto Rico to the mainland United States.
(GiraldoSantiago et al, 2024) While this would be a big change, the opportunity for an individual
to make a life change is high and comes with some risk in the United States. However, this is still
a concern as there are clear recommendations that are given to try and retain talented
personnel within this American territory.
Long-Term Orientation vs. Short-Term Normative Orientation
Within the United States, we are longer-term oriented compared to El Salvador. The
Country comparison tool gave the United States a 26 rating and a 20 rating for El Salvador.
(2023) This indicates that El Salvador is more concerned with things in the short term compared
Hofstede Analysis Comparison between the USA and El Salvador 7
to the United States. This is not a new phenomenon as we are seeing change take place quickly
as technology and the rate of globalization increase. For example, there are concerns that there
may be too many short-term focused financial investors and that there is an opportunity that is
left on the table for long-term investments. (L. Morin, 2024)
However, the reasons for these views are not unfounded. Within El Salvador, there is a
rich history of tradition and religion. (Encyclopedia Britannica, 2025) Additionally, in the United
States, there is a more individualist mindset that may influence their perception of quality of life
later in life. These are the similarities and differences that contribute to the long and short-term
views of both countries.
Indulgence vs. Restraint
The findings of the ratings for the country comparison tool were very surprising. The
country comparison tool rated the United States at 68 while El Salvador received an 89. This
means that El Salvador is more indulgent than the United States. At first, I was hesitant to agree
with this statement. However, after further analysis, there may be some truth to this rating. At
times, there is confusion between individualism and indulgence. While the United States may
be selfish at times, there is an aspect of restraint that is applied as individuals are, as the saying
goes, working hard so that they can play hard. However, within the El Salvadorian culture, it is
more common to indulge in impulses or desires. For example, in El Salvador, it is common
courtesy to show up to events or dinner plans late. (Commisceo Global Consulting Ltd., 2020)
This would not be common within the United States, and more restraint would be utilized.
While there are differences between these two countries when it comes to indulgence
and restraint, they both have aspects of each attribute. It is clear that in the United States, as a
big country, there are more indulgent people and restrained people. However, this is an
Hofstede Analysis Comparison between the USA and El Salvador 8
assessment of the collective culture within the country. Additionally, there is change and
development that is continuously happening within both of these countries. El Salvador may be
becoming less indulgent, and the United States may become more indulgent as the social norms
and structures develop within the country soon. However, both are impactful not only to the
collective culture of the country but to the individuals within the country.
Implications for USA Businesses Who Conduct Business in El Salvador?
Now that we have a thorough understanding of the similarities and differences between
the country of El Salvador and the United States, we can delve into the implications of these
dimensions. The second section of this paper will discuss the impacts to business being
conducted between these two countries. While the aspects highlighted affect business, they are
not the only attributes that contribute to the complicated aspects of international business.
Nonetheless, the analysis is comprehensive for this assignment.
Power Distance Index
Understanding the history of migration and the roman catholic religious background of
the country is important as we discuss the impacts that may be made to business practices
within the country. (Encyclopedia Britannica, 2025) Given that there is a higher power distance
index for El Salvador, there is a further complexity to conducting business as we understand that
higher power distance index nations typically value central authority. This may make it difficult
for an
American.
Hofstede Analysis Comparison between the USA and El Salvador 9
Individualism vs. Collectivism
As described in the first section of this paper, El Salvadorians have a more collective
society. This contributes to the values that are carried over into the business environment and
business transactions. For example, in El Salvador, it would not be unexpected for an individual
to choose what is best for the community over their business endeavors. This is part of what
delineates the collectivist from the individualist. (Satterlee, 2023) This is in contrast to what
would be anticipated within the United States. This may have roots as far back as the western
frontier within the United States. (Bazzi et al., 2020) While this article highlights that there may
be a relationship that steams for the westward expansion of the United States, when
conducting international business, you must be able to work collaboratively. Understanding that
there is a collectivist society in El Salvador, an American may have to shift their perception of
reality to meet the wants and needs of the community.
Masculinity vs. Femininity
Masculine and feminine characteristics of society can make or break business efforts
when conducting international business. For example, during business meetings or interactions,
it is not uncommon for an individual to let the female be the one to reach out and extend for a
handshake. (Commisceo Global Consulting Ltd., 2020) This is due to the more traditional gender
roles that are held within the country and society. While this is an example of something
beneficial to understand, many other examples help to explain the importance of the cultural
differences due to the femininity of El Salvador’s culture.
Additionally, other dimensions, such as individualism, collectivism, indulgence, and
restraint, impact the interactions in business that create a more masculine or feminine
interaction. Individualism and restraint create a masculine environment, which would
Hofstede Analysis Comparison between the USA and El Salvador 10
emphasize achievement and power. This should be considered going into a business deal in El
Salvador, as these are not the same values. The environment will most likely be more feminine
and require more communal consideration, and the business interaction may be more informal
than one that is conducted in the United States.
Uncertainty Avoidance Index
El Salvador has a high uncertainty avoidance index, which leaves opportunity for
businesses to be able to time their approach to conducting business. As we understand there to
be stronger hesitation to change in countries who have a high uncertainty avoidance index, it is
important to understand this impacts new business commitment and advancement if attempted
too soon. It is highlighted in a recent study that if there is a recession, Latin countries are more
inclined to further innovate. (Lim & Morris, 2023) Knowing this helps to determine the timing
and type of business proposals. For example, if El Salvador is a booming economy, this may not
be the best time to pitch a company shift in methodology of information communication
technology within the workplace.
Long-term vs. Short-term Normative Orientation
Once business is beginning to be conducted within the country of El Salvador, it is
critical to understand the end goal or the hard stop timelines for our goals. When negotiating
business deals, it is beneficial to be able to see both the benefits from your stance and the other
party of interests’ stance. Due to El Salvador being a more short-term-oriented country, there is
probably a large benefit to planning small wins throughout a long-term plan. This will help to
appease the people that are being worked with to ensure the best compliance and effort
(Country comparison tool, 2023)
Hofstede Analysis Comparison between the USA and El Salvador 11
Indulgence vs. Restraint
To ensure proper cultural consideration and to hopefully be able to provide a good
business interaction, it is important to understand the impacts of indulgence and restraint. To
begin, it is not uncommon in El Salvadorian culture to have very long and drawn-out meals.
(Commisceo Global Consulting Ltd., 2020) To ensure that we are not imposing our cultural
beliefs onto them, it would be beneficial to conduct business lunches in the form and fashion
that is traditional to El Salvador while in that country. This is the opposite of what would be
expected within the United States as we are more restrained when it may impede our
organizational achievement in both the short term and the long term.
While these are just a couple of examples that can be shown to explain the different
implications that are needed to be considered as we compare an indulgent and a restraint-
focused country, it is not all-encompassing. There are a multitude of areas that this will affect
during the coordination of international business efforts. There will need to be shifts or
negotiations during business encounters due to these considerations. However, if completed
correctly, there should be more than enough to meet the needs of both countries.
In conclusion, the Hofstede analysis can be used in multiple scenarios to better
understand similarities and differences of nations, as well as the implications that happen due
to these similarities and differences. It is clear now that El Salvador has a higher power distance
index than the United States, which is likely contributed to by the historical and current
hierarchical structures that are in place. Additionally, El Salvador is a more collectivist country
than the United States. This not only has implications for the individuals who are conducting
business but also affects the society as collectivist care for others within their sphere of
influence. This is contrary to the United States and its perspective on individualism and a drive
Hofstede Analysis Comparison between the USA and El Salvador 12
for achievement and power. While masculinity and femininity are sometimes influenced by
some of the other dimensions, it is clear that El Salvador is more feminine and the United States
is more masculine. Also, a higher uncertainty avoidance index and a short-term orientation are
higher in El Salvador when compared to the United States. Lastly, El Salvador is more indulgent
than restrained in their current culture, which is the opposite of the United States.
Given this information, all of these results are not too surprising, as there tends to be a
correlation between nations that mimic dimension expressions. These correlations are typically
geographical, national language, similar historical backgrounds, and identical political systems.
(Sridharan, 2022) However, there may be more similarities than differences at the end. More
analysis is needed to further understand the dynamics of conducting international business
when considering such cultural factors.
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