Match!

Culture′s Consequences: International Differences in Work-Related Values

Published on Nov 1, 1980
Walter J. Lonner13
Estimated H-index: 13
,
John W. Berry72
Estimated H-index: 72
,
Geert Hofstede65
Estimated H-index: 65
Sources
Abstract
Culture influences both individual behavior and how businesses operate. Those working in both the business and policy arenas must understand other cultures and avoid ethnocentrism. Culture is defined as the "collective programming of the mind"; in the modern context it exists within national borders. Using data from surveys of employees in 40 countries at the HERMES Corporation in 1968 and 1972, four categories of cultural difference become clear and useful: power distance; uncertainty avoidance individualism; and masculinity. These categories are then correlated not only with one another, but with other available data. Sex differentiation is the final dimension of cultural difference in this analysis. These four dimensions of national culture describe the human condition. Some of them correlate with one another. Analyzing the correlations between the various indices allows the clustering of these 40 countries with similar statistics into 8 groups: More and Less Developed Latin and Asian, Near-Eastern, Germanic, Anglo and Nordic. Because the HERMES data was collected at two different points, 1968 and 1972, it can show change over time. While scientific discoveries can effect cultural change, not every culture will become increasingly similar. Different cultures will follow different trends, though some trends will be global. There was a worldwide decrease in desired power difference and in elevations of stress and both the Individualism Index (IDV) and Masculinity Index (MAS) grew during this period. Speculation on long term trends is provided, suggesting that the IDV will rise and the Power Distance Index norm will fall as long as national wealth increases; the Uncertainty Avoidance Index will fluctuate as people age, and MAS will remain constant as time passes. Organizations are bound by the cultures that created them, with consequences for cultural relativity for a number of areas: motivation; leadership; decision-making; planning and control; organization design; development; humanization of work; industrial democracy; company ownership and control; and the reaction of the local environment to the organization. Possible training strategies for multi-national and multi-cultural corporations are included and the Values Survey Module is introduced, shortening and improving upon the original HERMES survey in the hope that research on cultural difference will continue. (RAS)
  • References (0)
  • Citations (16720)
📖 Papers frequently viewed together
1984
1 Author (Robert K. Yin)
65.8k Citations
2004
5 Authors (Robert J. House, ..., Vikas Gupta)
2,256 Citations
7,663 Citations
78% of Scinapse members use related papers. After signing in, all features are FREE.
References0
Newest
Cited By16720
Newest
Abstract Major studies on FDI looks at location, technology, policy, availability of natural resources, skilled labor, state support, climate, political and economic advantages for investment decisions. There are few studies that look at cultural factors affecting FDI decisions in service. This paper provides qualitative analysis of the impact of national culture on the flow of foreign direct investment in the service sector within the context of Germany. In particular, the paper discusses the c...
Source
#1Jiyin Cao (SBU: Stony Brook University)H-Index: 2
#2Adam D. Galinsky (Columbia University)H-Index: 68
Abstract Generalized trust is critical for societies and organizations because it facilitates cooperation beyond the circle of familiar individuals. In contrast to specific trust, which is contained within a relationship, generalized trust represents one’s general willingness to trust others before knowing any specific information about a partner. We present a new theoretical model—the Diversity-Uncertainty-Valence (DUV) Model of Generalized Trust Development—which identifies the factors that de...
Source
#1Yan-Leung Cheung (HKU: University of Hong Kong)H-Index: 1
#1Yan Leung Stephen Cheung (HKU: University of Hong Kong)H-Index: 9
Last. Wenming Wang (Hong Kong Baptist University)H-Index: 3
view all 3 authors...
Abstract Using a sample of loan facilities from 30 countries around the world, we investigate how national cultures affect the relationship between a firm's corporate social responsibility (CSR) performance and its bank borrowing costs. We find that firms with superior CSR performance are more likely to enjoy lower loan interest spreads in countries that exhibit higher levels of egalitarianism and harmony and/or lower levels of hierarchy and mastery. Further analyses reveal that the impact of na...
Source
#1Guido Orzes (Free University of Bozen-Bolzano)H-Index: 10
#2Antonella Moretto (Polytechnic University of Milan)H-Index: 11
Last. Guido Nassimbeni (University of Udine)H-Index: 23
view all 7 authors...
Abstract The United Nations Global Compact (UNGC) is one of the most important corporate social responsibility (CSR) initiatives aimed at aligning companies’ strategies and operations with principles that involve human rights, labor, environment, and anti-corruption. The purpose of this paper is to shed light on the relationship between UNGC adoption and firm performance. Starting from a literature analysis, we develop eight research hypotheses, three of them related to the effects of UNGC on pe...
1 CitationsSource
#1Pradipta Halder (University of Eastern Finland)H-Index: 10
#2E. N. Hansen (OSU: Oregon State University)H-Index: 1
Last. Tommi Laukkanen (University of Eastern Finland)H-Index: 26
view all 4 authors...
Abstract Going green in consumption is gaining momentum globally, but little is known how national cultural values and consumers' ethical ideologies explain green consumption. With a culturally rich sample of 1929 responses from consumers in Finland, Germany, Portugal, and the United Kingdom, the present study examines how cultural long-term orientation and collectivism predict consumers' green consumption values, and if these relationships are moderated by ethical ideologies. The study finds th...
Source
#1Rashmini Sharma (USP: University of the South Pacific)
#2Gurmeet Singh (USP: University of the South Pacific)H-Index: 8
Last. Shavneet Sharma (USP: University of the South Pacific)H-Index: 1
view all 3 authors...
Abstract The purpose of this study is to investigate the behavioral intention to adopt internet banking (IB) by individuals under the influence of user espoused cultural values in Fiji. A conceptual framework is developed by extending the Unified Theory of Acceptance and Use of Technology (UTAUT) model, incorporating customer satisfaction and perceived risk constructs and cultural moderators of individualism and uncertainty avoidance. This research adopts a quantitative approach and collects dat...
Source
#1Salman Bahoo (University of Udine)
#1Salman Bahoo (University of Udine)H-Index: 1
Last. Andrea Paltrinieri (University of Udine)H-Index: 4
view all 3 authors...
Abstract We systematically reviewed the literature on corruption in international business (137 articles) for the last 17 years between 1992 and 2019. Additionally, we identified seven research streams in this growing literature: (1) the legislation against corruption, (2) the determinants of corruption, (3) combating corruption, 4) the effect of corruption on firms, (5) the political environment and corruption, (6) corruption as a challenge to existing theories of management, and (7) the effect...
3 CitationsSource
#1Ramya Tarakad Venkateswaran (IIM-C: Indian Institute of Management Calcutta)H-Index: 2
#2Rejie George (IIMB: Indian Institute of Management Bangalore)H-Index: 8
Abstract Extending leading-edge frameworks on ‘when does culture matter?’, we propose a nuanced theoretical model to explain the context and mechanism of how the home country’s national culture influences managerial seeking of control, conditional on ‘situational moderators’ in the foreign market entry decision context. We examine the degree of ownership equity sought as a criterion variable, illuminating the mechanism as the acquirer signaling its intention to control based on managerial percep...
Source
#1Yonggui Wang (Capital University of Economics and Business)
#2Aoran Hong (UIBE: Beijing Institute of Foreign Trade)
Last. Jia Gao (UIBE: Beijing Institute of Foreign Trade)
view all 4 authors...
Abstract As a worldwide disaster, the COVID-19 crisis is profoundly affecting the development of the global economy and threatening the survival of firms worldwide. It seems unavoidable that this natural disruption has hit the global economy and produced a huge crisis for firms. This study explores how firms in China are innovating their marketing strategies by critically identifying the typology of firms’ marketing innovations using two dimensions, namely, motivation for innovations and the lev...
1 CitationsSource
Abstract In this paper, we explore the link between culture, measured by collectivism, and commonality in liquidity for 51 countries over the period 1985 to 2012. We provide evidence that commonality in liquidity is higher for stocks that trade in collectivist countries, after controlling for supply-side and demand-side determinants of liquidity as well as a host of country- and firm-level variables. The documented relation is shown to be moderated by country-level variables such as media penetr...
Source