Difference between Collectivism and Individualism in International Business

Difference between Collectivism and Individualism
International Business
Management Notes

Individualism is the idea that the individual’s life belongs to him and that he has an inalienable right to live it as he sees fit, to act on his own judgment, to keep and use the product of his effort, and to pursue the values of his choosing.Collectivism is the idea that the individual’s life belongs not to him but to the group or society of which he is merely a part, that he has no rights, and that he must sacrifice his values and goals for the group’s “greater good.”

Some of the major differences between Collectivism and Individualism are as follows:

Basis	Collectivism	Individualism
Definition	Collectivism is an ideology which accepts that the group is more important than individuals that form the group because being a part of society you are responsible for maintaining order and overall good even when society’s approach is harmful to you as a specific individual.	Individualism is an ideology, which accepts that the individual person is more important than the group because individual is sovereign, an end in himself, and the fundamental unit of moral concern.
Consciousness	In collectivism,there is frequent use of “We”.	In individualism, there is frequent use of “I”.
Communication	In collectivism,in- group and out-group communication are not equal .	In individualism,In- group and out-group communication are similar.
Privacy	In collectivism there is no place for privacy which means one is never alone.	In individualism,privacy is valued.
Dependency	In collectivism,group awareness precedes,mutual relationships and ties are emphasized.	In individualism,people have high self-awareness and are independent.
Friendship	In collectivism,friendship are determined by group memberships.	In individualism,friendship is a basic human need.
Information Source	In collectivism, social networks are the primary source of information.	In individualism, media is the primary source of information.
Occupation mobility	In collectivism, occupation mobility is lower.	In individualism,occupation mobility is higher.
Goal	In collectivism, harmony and consensus in society is the ultimate goal.	In individualism,self actualization by the individual is the ultimate goal.
Per Capita GDP	In collectivism,Per Capita GDP tends to be lower.	In individualism,Per Capita GDP tends to be higher.