2002 Volume 1 Issue 3 Pages 47-56
G. H. Hofstede (1980) Culture's Consequences is a result of an extensive research on the international comparison of corporate culture in 40 countries through 1967 to 1973. Hofstede identified four dimensions of culture from the investigation data of IBM's 40 subsidiaries. He developed four indices, but did not explicitly present the exact computation formulas for Individualism index and Masculinity index. This paper reproduces the formulas and proves how to conduct a factor analysis that Hofstede employed for development of these indices. Hereafter, supplementary analysis could be done using all four indices of Hofstede. Also a factor analysis could be done in Hofstede's method.